Rate confirmation
A rate confirmation (rate con) is the load-specific agreement a broker or shipper sends a carrier, stating the rate, pickup and delivery details, accessorials and payment terms; it becomes binding once the carrier signs it.
What is Rate confirmation?
A rate con turns a phone call or a load-board booking into a written contract for one load. It usually sits under a broker-carrier master agreement, which covers the general terms (insurance, liability, payment, double-brokering), while the rate confirmation fixes what is specific to this shipment.
It is also the document the money depends on. The carrier invoices against it, the broker audits the invoice against it, and a factoring company will want the signed rate con together with the signed bill of lading or proof of delivery before it advances cash. If a charge is not on the rate con, expect a dispute.
A TMS generates rate confirmations from the load data so the numbers on the contract, the dispatch and the invoice are the same. For a one-off load, the free rate confirmation generator creates one as a PDF.
What a rate confirmation should include
Broker and carrier names with their MC or USDOT numbers; the load or reference number; pickup and delivery addresses, dates, times and appointment numbers; equipment type and any temperature or tarp requirements; commodity, weight and piece count; the all-in rate or linehaul plus fuel; the agreed accessorial charges such as detention, layover, lumper reimbursement and TONU; payment terms and the documents needed to get paid; and signatures with a date.
Frequently asked questions
What is the difference between a rate confirmation and a bill of lading?
The rate confirmation is the commercial agreement between broker (or shipper) and carrier: price and terms. The bill of lading is the shipping document between shipper and carrier: what freight was handed over, from whom, to whom. A load normally has both.
Is a rate confirmation legally binding?
Once both sides have signed it, it is generally treated as the contract for that load, read together with any master agreement between the parties. That is why carriers should check every field before signing and brokers should send a revised confirmation when terms change.
What should a carrier check before signing a rate con?
That the rate, dates, addresses and equipment match what was agreed; that detention, layover and TONU terms are written down; the payment terms and required paperwork; and that the broker’s name and MC number match the company you actually booked with.
What happens if the load changes after the rate con is signed?
Ask for a revised rate confirmation that reflects the change (an added stop, a new delivery time, a rate adjustment) before running it. Verbal changes are the most common source of short payments on brokered loads.
See Rate confirmation in a real TMS
Transportial puts these concepts to work in one operational platform — planning, tracking, documents, and finance.