For years, carriers have priced freight one lane at a time. But is that still the best way to maximize profitability? We sat down with Magnus Technologies CEO Matt Cartwright to answer the questions transportation leaders should be asking about network optimization, AI, and the future of freight planning.

1. Is lane-based pricing still the best way to price freight?

Short answer: Not for most carriers.

Lane-based pricing assumes trucks move from Point A to Point B and then return or repeat the same route. In reality, fleets operate networks of interconnected shipments. Every load influences the next one, which means profitability depends on the entire movement of the asset, not a single lane.

Key takeaway: Think about the truck’s entire journey, not just one shipment.

🎧 Hear Matt explain why lane-based thinking is becoming outdated

2. What is circuit planning?

Circuit planning looks at how freight moves through your entire network rather than evaluating one shipment at a time. So instead of asking, “Is this load profitable?”, circuit planning asks:

• Where did this truck come from?
• Where will it go next?
• How does this shipment affect utilization?
• Will this create empty miles or eliminate them?

The result is a much more accurate understanding of profitability.

3. Why isn’t revenue per mile enough?

Revenue per mile only tells part of the story. A load paying $6.00 per mile may require significant repositioning before pickup or leave equipment stranded in a weak freight market. Meanwhile, a $3.50 per mile load may keep trucks inside a highly profitable network.

The question isn’t simply “What does this load pay?” It’s: “What does this load do to my network?”

4. Why do empty miles matter so much?

Every empty mile increases cost without generating revenue. When carriers focus only on individual loads, they often overlook how dispatch decisions create unnecessary repositioning.

Reducing empty miles isn’t just about saving fuel. It improves:

• Asset utilization
• Driver productivity
• Revenue per truck
• Overall network efficiency

5. How can a TMS help reduce empty miles?

Modern cloud TMS platforms don’t just manage dispatch; they analyze historical freight patterns, origin and destination density, and equipment utilization to identify opportunities that aren’t obvious through manual planning.

Instead of relying on intuition, planners can make decisions based on actual network data.

6. Will AI replace dispatchers?

No. AI is best used to process thousands of operational variables and surface recommendations. Experienced dispatchers still provide context, customer knowledge, and judgment that technology cannot replace.

The goal isn’t automation for its own sake - it’s to enable better decision-making.

7. What should operations teams focus on every day?

The highest-performing operations teams don’t spend their day monitoring loads that are already on schedule. Instead, they focus on exceptions: Automation handles routine work so people can spend their time resolving delays, communicating with customers, and protecting service levels before problems escalate.

8. What metrics should carriers measure besides revenue per mile?

Revenue per mile is important, but it shouldn’t be the only metric. Leading fleets also monitor:

• Empty mile percentage
• Asset utilization
• Driver utilization
• Freight density
• Circuit profitability
• Revenue per total mile

Together, these metrics provide a more complete picture of operational performance.

9. How do carriers transition from lane thinking to network thinking?

It starts by questioning long-held assumptions. Instead of asking, “What’s my lane rate?”, ask:

• Does this strengthen my network?
• What happens after delivery?
• Will this improve utilization?
• Does this create or eliminate deadhead?

Small changes in thinking can produce significant improvements in profitability over time.

10. What’s the biggest lesson for carriers?

The industry has spent decades optimizing individual shipments.

The next competitive advantage belongs to carriers that optimize their entire network.

A single load rarely determines profitability.

Your network does.

Ready to See What Your Network Could Be Worth?

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