What Is a Rate Confirmation? How to Read a Rate Con
A rate confirmation is the document a broker sends a carrier for each load, stating the rate, the stops and the terms. Here's what each section means and what to check before you sign.
A rate confirmation, or rate con, is the document a freight broker sends a carrier for a single load. It states what the carrier will be paid, where and when the freight is picked up and delivered, and the terms that apply. Once both sides sign it, it is the agreement for that load.
It works alongside the broker-carrier agreement you signed at setup. The agreement covers every load. The rate confirmation covers this one.
What is on a rate confirmation
| Section | What it contains |
|---|---|
| Parties | Broker name and MC number, carrier name and MC number |
| Load number | The reference you put on your invoice |
| Pickup | Facility, address, date, appointment time, reference numbers |
| Delivery | The same, for each stop |
| Freight | Commodity, weight, piece count |
| Equipment | Trailer type and length, and any requirement such as temperature or tarps |
| Rate | Linehaul, fuel surcharge, accessorials, total |
| Accessorial terms | Free time, detention rate, layover, TONU |
| Payment | Terms, quick pay option, where to send the invoice |
| Requirements | Tracking, check calls, paperwork needed for payment |
| Other terms | Penalties, re-brokering, claims |
| Signatures | Broker and carrier |
What to check before you sign
1. The parties
Your legal name and MC number should be correct. The broker's should match the company you have been dealing with. If the broker's name or number is different from the one you were set up with, stop and call them.
2. The total, and how it is built
The total should equal what you agreed on the phone or the load board. Check whether fuel is shown separately or included in a flat rate.
Then work out what the load pays per mile. Divide the total by all the miles you will drive, including the empty miles to the pickup.
3. Stops, dates and times
Read every address. Confirm whether each time is a fixed appointment, a window, or first come first served. Work out whether you can legally make the delivery time within your hours of service. If you can't, say so before you sign.
4. The freight and the equipment
Check that the weight is legal for your truck and that the trailer type is the one you have. For a reefer load, the set point and whether the unit runs continuous or cycle should be written down. See reefer vs. dry van.
5. Accessorial terms
Look for numbers.
- Free time at pickup and delivery, in hours
- Detention rate per hour, and any cap
- Layover amount
- TONU amount
- Who pays the lumper
"Detention as agreed" and "standard accessorials apply" are not terms you can enforce. Ask for the figures. Detention pay and accessorial charges explains each one.
6. What you must send to be paid
Most rate confirmations list the documents required: the signed bill of lading, receipts, and sometimes scale tickets or temperature records. Note any deadline for sending them, and any deduction for sending them late.
7. Payment terms
Find the number of days, and the quick pay option and its fee if there is one. See quick pay vs. factoring.
8. Penalties
Look for deductions for late pickup, late delivery, missed check calls or tracking that is switched off. Know the amounts before you accept. On a tight schedule they can decide whether the load is worth taking.
9. Tracking and check calls
If the load requires tracking through an app or your ELD, accept only if your driver will use it.
Terms that are often missed
- Re-brokering. Almost every rate confirmation prohibits giving the load to another carrier. Doing so can void your payment.
- Seal intact. If the load is sealed, the seal number is recorded at pickup and must be unbroken at delivery. A broken seal can be grounds for the receiver to refuse the load.
- Pallet exchange. Some loads require you to bring empty pallets to swap.
- Driver load or unload. The rate confirmation should say who loads and who counts the freight.
If something is wrong
Do not cross out a term by hand and sign. Ask the broker to send a revised rate confirmation, and sign that one.
The same applies after you have been dispatched. A changed address, an added stop or approved detention should be put on a revised rate confirmation or confirmed in writing. A verbal promise is hard to collect on.
Keep your copies
Keep the signed rate confirmation, the signed bill of lading and your invoice together for each load. Brokers are required to keep a record of every transaction for three years, and each party to the transaction has the right to review that record (49 CFR 371.3).
How we issue rate confirmations
Lancashire Freight sends a signed rate confirmation before you roll. Pay is same-day ACH on proofs of delivery submitted by 2pm, and net-21 from invoice otherwise.
FAQ
What is a rate confirmation?
A rate confirmation is the document a freight broker sends a carrier for one load. It states the rate, the pickup and delivery details and the terms, and once signed it is the agreement for that load.
What is a rate con in trucking?
Rate con is short for rate confirmation. It is the per-load document from the broker that a carrier signs before hauling the freight.
Is a rate confirmation a legally binding contract?
Once signed by both sides it is an agreement on the terms of that load, and it is read together with the broker-carrier agreement. It is the main evidence of what was agreed if there is a dispute about pay.
What is the difference between a rate confirmation and a bill of lading?
A rate confirmation is between the broker and the carrier and sets what the carrier is paid. A bill of lading is issued at pickup, travels with the freight, and is the receipt and contract of carriage for the goods.
What should I check on a rate confirmation before signing?
Check the parties, the total and how it is built, the addresses and appointment times, the equipment required, the accessorial terms, the paperwork needed for payment, the payment terms and any penalties.
What should I do if the rate confirmation is wrong?
Ask the broker for a revised rate confirmation before you sign or move. Do not mark changes by hand, and do not rely on a verbal correction.
Should I haul a load without a rate confirmation?
No. Without a signed rate confirmation you have no written record of the rate or the terms, and nothing to support your invoice.
Join our carrier network for loads with a signed rate confirmation before you roll.