What is a rate confirmation?
A rate confirmation (rate con) is the signed agreement between a broker and a carrier locking in the pay, pickup/delivery times, and special instructions for a specific load. It's the carrier's legal proof of what they're owed when the load delivers — and the broker can't change the pay without re-issuing it.
When a broker books a carrier on a load, the rate confirmation is the document that closes the deal. It names both parties (broker MC and carrier MC), the load number, pickup and delivery locations and appointment times, the commodity and weight, the equipment type required, special instructions (tarps, straps, temperature setpoint), the linehaul rate, the fuel surcharge schedule or fixed FSC, any accessorial allowances (detention, layover, lumper reimbursement caps), and the carrier's payment terms. The carrier signs and returns it before dispatch — most modern brokers handle this through their portal with an e-signature, though faxed and emailed PDFs are still common. Once signed, the rate confirmation is the contract: if the load delivers as agreed, the broker owes the stated pay. The two main disputes carriers run into are (1) brokers trying to reduce pay after the fact for issues outside the carrier's control (traffic, weather delays, receiver-caused exceptions) — generally not enforceable without the carrier's agreement — and (2) accessorial disputes where the broker rejects a detention or lumper claim that wasn't on the original rate con. Smart carriers read the rate con carefully before accepting and push back on any vague language; smart brokers write rate cons that hold up in collection because their payment terms are clear and their accessorial schedules are documented.
- Can a broker change a rate after the rate confirmation is signed?Not without the carrier's agreement. The signed rate con is a binding contract. If the broker wants to reduce pay (e.g., the receiver claims a service failure), they have to negotiate a revised rate con or the carrier can collect the original amount through small claims court, freight bond claim, or factoring company collection. Unilateral pay reductions are a common reason carriers shop their broker relationships.
- What's the difference between a rate confirmation and a BOL?Different documents, different purposes. The rate confirmation is the carrier-broker contract that sets pay; the BOL is the shipper-carrier contract that sets what's being moved and any liability terms. A load has one rate confirmation (with the broker who booked it) and one BOL (with the shipper). Both are needed to invoice — most brokers won't pay an invoice without both attached.
- Should a carrier sign a rate con before reading it?No. The rate con often contains terms that bind the carrier beyond the obvious — payment terms (net-30 vs. net-45), chargeback rights (detention disputes, claim deductions), service-failure penalties, lumper reimbursement caps, late-arrival fees. Reading the first time matters; after that, most brokers' rate cons are templated and the carrier knows the boilerplate. Newer carriers should always read the full rate con and ask about anything unfamiliar.