Transportation, Freight & Distribution worked example

Lane Cost Variance at 72% affected shipment share: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop affected shipment share to 72%, then walk the calculation through step by step. Estimate lane cost variance from shipment volume, rate variance per shipment, affected share, and fixed spot-market or accessorial variance.

The inputs for this scenario

  • Shipments on lane: 96 shipments (held at the documented default)
  • Rate variance per shipment: 38 $ / shipment (held at the documented default)
  • Affected shipment share: 72 % (the input this scenario stresses; the baseline uses 100)
  • Fixed lane variance: 1,200 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable lane cost variance = shipments on lane × rate variance per shipment × affected shipment share.
  • Total lane cost variance works out to 3,827 $ at these inputs, and this is the headline figure for the scenario.
  • Variance per lane shipment works out to 39.86 $ / unit at these inputs.
  • Variable lane cost variance works out to 2,627 $ at these inputs.
  • Fixed charges works out to 1,200 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where affected shipment share sits at 100% and the headline result is 4,848 $, this scenario comes in 21.07% below the baseline at 3,827 $.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to affected shipment share, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It treats per-shipment rate variance as uniform across the affected shipments, so it smooths over mode, weight-break, and accessorial differences that can make individual shipments swing far from the average.

Results at a glance

  • Total lane cost variance: 3,827 $ (headline result)
  • Variance per lane shipment: 39.86 $ / unit
  • Variable lane cost variance: 2,627 $
  • Fixed charges: 1,200 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Lane Cost Variance calculator, set affected shipment share to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.