A system for reducing overlay network overhead includes a memory, a processor in communication with the memory, a first container and a second container running on a first host, and a container scheduler executing on the processor. Each of the first container and second container expose a network service port(s). The container scheduler executes on the processor to assign a network complexity weight to the first host. The network complexity weight is based on a quantity of network service ports that the first container and the second container expose. The container scheduler also filters hosts based on resource availability corresponding to each host and ranks the hosts based on a respective network complexity weight corresponding to each host. Additionally, the container scheduler dispatches a third container to a second host based on the resource availability and network complexity weight corresponding to the second host.