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Freight glossary

Rate confirmation (rate con): definition and what to check

A rate confirmation is the load-level agreement between a broker and a carrier. Here is what belongs on it, what to check, and how to handle rate changes.

Short answer

A rate confirmation (rate con) is the load-specific agreement a freight broker sends a carrier before pickup. It sets the agreed rate, pickup and delivery details, equipment, reference numbers, accessorial terms and payment terms. The carrier signs and returns it, and it becomes the document both sides point to when anything about the load is disputed.

Why the rate con matters

The broker-carrier agreement in the carrier packet sets the general rules. The rate con applies them to one load. It is where the number the carrier agreed to on the phone gets written down.

When a driver waits four hours, a stop gets added, or a load cancels at the dock, the first question is always the same: what does the rate con say? If it’s silent on detention or TONU, you are negotiating after the fact.

It also feeds your records. Under 49 CFR 371.3, brokers must keep a record of each brokered transaction for three years, including the carrier, the compensation received and the date the carrier was paid. Each party to the transaction has the right to review that record.

What belongs on a rate confirmation

FieldWhat it should say
Broker and carrierLegal names, MC and USDOT numbers, dispatch contact
Load referenceYour load number plus the shipper’s PO, pickup or BOL numbers
StopsEvery pickup and delivery address with appointment time or window and time zone
EquipmentTrailer type and length, temperature setting for reefer, tarps or straps for flatbed
FreightCommodity, weight, piece or pallet count
RateLinehaul and fuel shown separately, or clearly marked as all-in
Accessorial termsDetention free time and hourly rate, layover, TONU, lumper reimbursement rules
Payment termsDays to pay, quick pay fee, documents required for payment (POD, receipts)
RequirementsTracking, check calls, no re-brokering, driver rules at the facility
SignatureCarrier signature, printed name and date

What to check on every rate con

  • The carrier is the one you vetted. MC number, legal name and dispatch phone match the carrier record. A mismatch can be a sign of double brokering.
  • Times match the appointment. The carrier’s pickup time can differ from the customer’s window. Put the carrier’s time on the rate con.
  • The rate basis is clear. Marked all-in, or linehaul and fuel on separate lines.
  • Accessorials are priced in advance. Free time, hourly detention, TONU amount and the receipts you need.
  • It’s signed before the truck rolls. A verbal yes doesn’t hold up when the invoice arrives.

When the rate changes, issue a new version

Rates change after booking. A stop gets added, the appointment moves a day, or the shipper approves layover. Don’t edit the signed document. Issue version 2, get it signed, and keep version 1 as history.

Example (illustrative numbers): a carrier signs at $2,065 all-in for a 700-mile dry van load. The shipper adds a second delivery 30 miles away and agrees to a $100 stop-off charge. The broker sends version 2 at $2,165. The carrier signs version 2, and that’s the version billing pays from.

How FreightVero handles it

FreightVero generates rate confirmations on your company letterhead with your terms, carrying the carrier’s times. Changing the terms creates a new version, and old versions can’t be edited or deleted. The Carrier Dispatched checkpoint requires the latest version signed, with the signed copy uploaded to the load. If the carrier falls off, the swap voids the old rate con and keeps the history. See rate confirmations in FreightVero. For teams receiving rate cons, AI load entry is live: it reads the document and drafts a load for a person to confirm.

Frequently asked questions

Is a rate confirmation a legally binding contract?

A signed rate con is generally treated as the agreement for that load, usually read together with the broker-carrier agreement signed during setup. When the two conflict, the contract language decides which controls. For a disputed load with real money at stake, have a transportation attorney read both documents.

What is the difference between a rate confirmation and a bill of lading?

The rate con is between the broker and the carrier and covers price and terms. The bill of lading is the shipping document the shipper gives the driver at pickup. It describes the freight and serves as the receipt. Brokers usually keep the carrier's rate off the BOL.

What should a carrier do if the rate con doesn't match what was agreed?

Don't sign it and don't dispatch the truck. Reply to the broker in writing with the rate and terms you agreed to and ask for a corrected version. Once a driver picks up under a signed rate con, it is much harder to argue the number was different.

Can a carrier add charges that aren't on the rate con?

A carrier can ask, but payment usually depends on documentation and the broker's approval. Detention without in and out times, or a lumper fee without a receipt, is often denied. The safe path is to call the broker when the charge starts and get the approval, and a revised rate con, in writing.

Sources (1)
  1. eCFR: 49 CFR Part 371, brokers of property

See your own loads run through the checkpoints.

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