Flow routing within a conduit link in SWMM is governed by the conservation of mass and momentum equations for gradually varied, unsteady flow i.e. the Saint Venant flow equations. You have a choice on the level of sophistication used to solve these equations.
Steady Flow routing represents the simplest type of routing possible (actually no routing), by assuming that within each computational time step, flow is uniform and steady. Therefore, it simply translates inflow hydrographs at the upstream end of the conduit to the downstream end, with no delay or change in shape. The Manning equation is used to relate flow rate to flow area (or depth).
This type of routing cannot account for channel storage, backwater effects, entrance/exit losses, flow reversal or pressurised flow. It can only be used with dendritic conveyance networks where each node has only a single outflow link, unless the node is a divider in which case two outflow links are required. This form of routing is insensitive to the time step employed, and is really only appropriate for preliminary analysis using long-term continuous simulations.
This routing method solves the continuity equation, along with a simplified form of the momentum equation in each conduit. The latter requires that the slope of the water surface equal the slope of the conduit.
The maximum flow that can be conveyed through a conduit is the full-flow Manning equation value. Any flow in excess of this entering the inlet node is either lost from the system or can pond atop the inlet node and be re-introduced into the conduit as capacity becomes available.
Kinematic wave routing allows flow and area to vary both spatially and temporally, within a conduit. This can result in attenuated and delayed outflow hydrographs as inflow is routed through the channel. However, this form of routing cannot account for backwater effects, entrance/exit losses, flow reversal, or pressurised flow, and is also restricted to dendritic network layouts. It can usually maintain numerical stability with moderately large time steps, of the order of 5-15 minutes. If the aforementioned effects are not expected to be significant, this alternative can be an accurate and efficient routing method, especially for long-term simulations.
Dynamic Wave routing solves the complete one-dimensional Saint Venant flow equations, and therefore produces the most theoretically accurate results. These equations consist of the continuity and momentum equations for conduits and a volume continuity equation at nodes.
With this form of routing it is possible to represent pressurised flow when a closed conduit becomes full, such that flows can exceed the full-flow Manning equation value. Flooding occurs when the water depth at a node exceeds the maximum available depth, and the excess flow is either lost from the system or can pond atop the node and re-enter the drainage system.
Dynamic wave routing can account for channel storage, backwater, entrance/exit losses, flow reversal, and pressurised flow. Because it couples together the solution for both water levels at nodes and flow in conduits, it can be applied to any general network layout, even those containing multiple downstream diversions and loops. It is the method of choice for systems subjected to significant backwater effects due to downstream flow restrictions and with flow regulation via weirs and orifices. This generality comes at a price of having to use much smaller time steps, of the order of a minute or less. SWMM will automatically reduce the user-defined maximum time step as needed to maintain numerical stability.