What is a Rate Confirmation? (New Authority Guide)
A rate confirmation is one of the most important documents in trucking, yet many new authorities don't fully understand it. This guide explains what rate confirmations are, what to look for, and how to protect yourself when signing them.
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What Exactly is a Rate Confirmation?
A rate confirmation (also called a rate con or load confirmation) is a legally binding contract between a carrier and a broker. It documents all the essential details of a freight shipment and the agreed-upon terms.
When you sign a rate confirmation, you're agreeing to transport specific freight for a specific rate under specific conditions. This document protects both parties by establishing clear expectations.
Essential Information on Every Rate Confirmation
Every legitimate rate confirmation should include the following information. Missing details are red flags that require clarification before signing.
Required Elements:
- Load number – Unique identifier for tracking and reference
- Pickup details – Address, date, time, and contact information
- Delivery details – Address, date, time, and contact information
- Freight description – What you're hauling, weight, and piece count
- Rate – Total compensation for the load
- Payment terms – When and how you'll be paid
- Broker information – Company name, MC number, contact details
- Special instructions – Any specific requirements for the load
Red Flags to Watch For
Not all rate confirmations are created equal. Learning to spot problematic terms protects you from financial loss and disputes.
Excessive Penalties
Some rate cons include unreasonable penalties for minor delays or issues. Read penalty clauses carefully.
Vague Freight Description
If the freight isn't clearly described, you could arrive to find something different than expected.
Unclear Payment Terms
Standard is 30-day payment. Terms like "when paid by shipper" can delay payment indefinitely.
Detention Not Addressed
If detention pay isn't specified, getting compensated for wait time becomes difficult.
Understanding Payment Terms
Payment terms on rate confirmations vary significantly. Understanding common terms helps you manage cash flow.
- Net 30 – Payment within 30 days of delivery (most common)
- Net 15 / Net 7 – Faster payment, sometimes with quick-pay fees
- Quick Pay – Expedited payment (usually 2-5 days) for a fee (typically 2-5%)
- COD – Cash on delivery (rare in broker freight)
Many new authorities use factoring to get faster access to their money. Our dispatch services can help coordinate with factoring companies to streamline your payment process.
Accessorial Charges and Extras
Rate confirmations should specify any accessorial charges you may be entitled to. These extras can significantly impact your total compensation.
Common Accessorials:
- Detention – Pay for excessive wait times at pickup or delivery
- Layover – Compensation if you're held overnight
- TONU (Truck Ordered Not Used) – Partial pay if load cancels after you arrive
- Stop pay – Extra compensation for multi-stop loads
- Lumper fees – Reimbursement for unloading services
What to Do Before Signing
- Read everything – Don't just look at the rate; read all terms and conditions
- Verify the broker – Check their MC authority and credit rating
- Confirm pickup/delivery – Call to verify appointments are scheduled
- Ask questions – Clarify anything unclear before signing
- Document agreements – If verbal changes are made, get them in writing
Our new authority support includes guidance on reviewing rate confirmations, helping you avoid common pitfalls that cost new carriers money.
Frequently Asked Questions
Can I negotiate rate confirmation terms?
Yes. Terms are negotiable before signing. If you disagree with specific clauses, discuss them with the broker. Experienced dispatchers negotiate favorable terms regularly.
What if the load details change after I sign?
Changes require a new rate confirmation or written amendment. Never accept significant changes without documentation. Verbal agreements are difficult to enforce.
Do I need to keep copies of rate confirmations?
Absolutely. Keep every rate confirmation for at least 3 years. These documents are essential for disputes, audits, and payment tracking.
What if a broker doesn't send a rate confirmation?
Never haul freight without a signed rate confirmation. This is a major red flag. Legitimate brokers always provide documentation before pickup.
Disclaimer: Results vary based on carrier experience, equipment, lanes, and market conditions. The information provided is for educational purposes and does not guarantee specific outcomes.
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