What is a Rate Confirmation?
A rate confirmation (rate con) is the contract between a carrier and broker that locks in the rate, pickup/delivery details, and terms for a load. It's legally binding once signed - making it crucial to read every word before accepting.
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O TruckingWhat's Included in a Rate Confirmation
Essential Information
- Load number - Unique identifier for the shipment
- Pickup details - Address, date, time, contact
- Delivery details - Address, date, time, contact
- Agreed rate - All-in or line-haul + FSC
- Commodity - What you're hauling
- Weight - Estimated or actual pounds
Payment & Terms
- Payment terms - Net 15, Net 30, Quick Pay
- Detention policy - Free time and rate
- Accessorial coverage - Lumpers, TONU, etc.
- Fuel surcharge - Included or separate
- Broker contact - Who to call for issues
- Special instructions - Temp, handling, etc.
If It's Not on the Rate Con, It Doesn't Exist
Red Flags to Watch For
No Detention Pay Mentioned
If detention isn't specified, you likely won't get paid for waiting. Insist on: "Detention: 2 hours free, then $50/hour."
"Carrier Responsible for Lumpers"
This means you eat lumper fees. Push back: "Lumpers paid by shipper/consignee" or negotiate reimbursement.
Excessive Cargo Liability Requirements
Standard is $100,000. If they require $250,000+ cargo insurance, the load may have issues or they're shifting risk to you.
No TONU Provision
If the load cancels after you arrive, you need TONU protection. Ask for: "TONU: $250 if load canceled after dispatch."
Very Long Payment Terms
Net 45 or Net 60 delays your cash flow. Standard is Net 30. Consider factoring or Quick Pay.
"Double Brokering Prohibited" with Penalty Clauses
Standard clause, but watch for excessive penalties ($10,000+). Never re-broker a load without written permission.
Negotiate Before You Sign
Rate Con Best Practices
Read Everything
Don't skim. Read every line, especially the fine print at the bottom. That's where unfavorable terms hide.
Verify Broker Before Booking
Check their MC authority, credit score, and reviews. Use our broker verification guide.
Get Everything in Writing
Any verbal agreements need to be added to the rate con. "Add detention coverage to the rate con and I'll sign."
Keep Signed Copies
Organize rate cons by date or load number. You may need them months later for payment disputes.
Walk Away from Bad Terms
A bad rate con is worse than no load. If the broker won't negotiate fair terms, find another load.
Sample Rate Con Checklist
Before signing any rate confirmation, verify:
How Our Dispatchers Review Rate Confirmations
As a dispatch service reviewing rate confirmations daily, we've developed a systematic approach to protect our carriers from bad agreements:
We check every clause before sending to carriers
Our team reads the fine print so you don't have to. We flag unfavorable terms like missing detention provisions, excessive penalties, and unclear fuel surcharge language before the driver sees the rate con.
We verify broker identity on every rate con
We cross-reference the rate con details with broker credit checks and FMCSA records. If the MC number, company name, or contact info doesn't match, we don't book the load.
We negotiate fair terms as standard practice
Detention pay, TONU protection, and proper payment terms aren't optional for us. We push back on unfair clauses and only book loads with terms that protect our carriers.
Rate Confirmation Guide Collection
Rate Con vs Bill of Lading
Key differences between these essential documents
Rate Con Red Flags
12 dangerous clauses every carrier must know
Negotiate Rate Con Terms
7 key terms to negotiate with scripts
Rate Con Disputes
6-step resolution process when brokers don't pay
Digital Rate Confirmations
Templates, tools, and organization systems
Broker Credit Check
Verify broker before signing rate con
Rate Confirmation FAQ
Common questions about rate confirmations and broker agreements
Is a rate confirmation legally binding?
Yes, a signed rate confirmation is a legally binding contract. Once you sign, you're obligated to haul the load at the agreed rate. That's why it's critical to read everything before signing - you can't renegotiate after signature.
What if the rate con doesn't match what the broker said?
Never sign a rate con that differs from verbal agreements. Call the broker immediately and get it corrected BEFORE signing. Written terms override verbal promises - if it's not on the rate con, it doesn't exist.
Can I negotiate rate confirmation terms?
Yes, everything is negotiable before you sign. Common negotiations include detention pay, layover provisions, fuel surcharges, and accessorials. Once signed, you've accepted all terms as-is.
How long should I keep rate confirmations?
Keep rate confirmations for at least 3-5 years. They're essential for resolving payment disputes, audits, and potential legal issues. Most carriers keep them digitally for easy searchability.
What do I do if a broker won't pay what the rate con says?
The rate confirmation is your legal proof. First, send a formal demand letter citing the rate con. If unpaid after 30 days, you can file a claim with the broker's surety bond or pursue small claims court. Always keep copies of signed rate cons.
We Review Every Rate Con for You
Our dispatch team checks every clause, negotiates fair terms, and verifies broker identity on every load.