In some embodiments, a method receives a packet for a flow from a first application in a first workload to a second application in a second workload. The packet includes an inner header that includes layer 4 information for the first application. The method determines if a setting indicates an outer source port in an outer header should be generated using layer 4 information from the inner header. The setting is based on an analysis of packet types in the flow to determine if fragmented packets are sent. When the setting indicates the outer source port in the outer header should be generated using layer 4 information from the inner header, the method generates the outer source port using the layer 4 information for the first application from the inner header. The packet is encapsulated using the outer header, wherein the outer header includes the outer source port.