An MPLS LSP is established by one of two methods: static LSPs and dynamic LSPs.
Like a static route, a static LSP requires each router along the path to be configured explicitly. You must manually configure the path and its associated label values. Static LSPs require less processing by the LSRs because no signaling protocol is used. However, because paths are statically configured, they cannot adapt to network conditions. Topology changes and network outages can create black holes in the LSP that exist until you manually reconfigure the LSP.
Dynamic LSPs use signaling protocols to establish themselves and propagate LSP information to other LSRs in the network. You configure the inbound router with LSP information that is transmitted throughout the network when you enable the signaling protocols across the LSRs. Because the LSRs must exchange and process signaling packets and instructions, dynamic LSPs consume more resources than static LSPs. However, dynamic LSPs can avoid the network black holes of static LSPs by detecting topology changes and outages and propagating them throughout the network.