How to Read a Rate Confirmation and Spot a Bad Load

A rate confirmation (rate con) is the document that makes your verbal agreement with a broker official. Once you sign it, you're locked in. The broker has a paper trail and so do you. The problem is most carriers sign rate cons fast, sometimes without reading past the rate line. That's how you end up disputing detention at the destination with no supporting language in the contract.

What a rate confirmation must contain

A legitimate rate confirmation includes all of these. If any are missing, ask before you sign.

• Your company name, MC number, and the broker's MC number
• The broker's contact name and direct phone number
• Shipper name and address, consignee name and address
• Pickup and delivery dates and times (including appointment windows)
• Commodity description and weight
• Equipment type and trailer requirements
• Total rate (linehaul), with any accessorials listed separately or confirmed as included
• Detention policy: free time allowed, rate per hour after free time (and which party authorizes it)
• Lumper policy: who pays, and how to get reimbursed
• TONU (Truck Order Not Used) policy if the load gets cancelled

Reading the rate line carefully

Some rate cons show a total flat dollar amount. Others show rate per mile. Either is fine, but verify that the rate in the document matches what you negotiated verbally. Rate cons have been sent with intentionally lower numbers than the quoted rate, relying on the driver to sign quickly. If the number differs by even a dollar, call the broker before you dispatch.

Watch for the phrase 'all-in.' An all-in rate means fuel surcharge, detention, lumpers, and every other accessorial are rolled into the one number you see. That's fine if the number is sufficient, but it means you have no separate line to claim if detention runs long or you pay a lumper out of pocket.

Detention: the most common dispute

Detention is what you're owed when a shipper or consignee holds your truck beyond the free time specified in the rate con. The standard is two hours free time, then a hourly rate, but brokers can write anything. If the rate con doesn't specify detention terms at all, you have no documented basis for a claim. Before you sign, either confirm detention terms are in writing or call and ask them to add it.

When you're detained: note your arrival time on the BOL or in a timestamped message to the broker. Document everything. Detention that isn't documented in real time is almost impossible to collect after the fact.

Red flags that signal a bad load

• Rate con doesn't match what you negotiated. Even small differences. Don't assume it's a typo.
• No detention clause. If the shipper is known for running late, this will cost you.
• Delivery window that's physically impossible. Check drive time plus required rest stops. If you can't make it legally, that's a setup for a service failure.
• Broker company name on the rate con differs from who you negotiated with. Legitimate when they work for a larger brokerage, but verify you're not dealing with a shell.
• Rate seems too high for the lane and commodity. Double freight scams and cargo theft often start with loads that pay unusually well to get you to skip verification.
• No TONU provision on a load with a long pickup appointment lead time. If they cancel, you want to be made whole for the wasted time.

Verifying the broker

Before you book with a new broker, look them up on the FMCSA Safer web or via Carrier411. Confirm their MC number is active and they carry the required surety bond ($75,000 as of the current FMCSA requirement). A broker without a valid bond is a broker you may not be able to collect from.

After you sign

Save every rate con with its matching BOL and proof of delivery (POD). Your invoice to the broker should reference the rate con number. When you invoice the broker, attach the signed BOL and POD in the same email. Missing paperwork is the number-one reason payments get delayed.

The bottom line

The rate con protects you when something goes wrong. Read it like a contract because it is one. Spend two extra minutes on it before every load and you'll avoid most of the disputes that plague owner-operators who sign fast and read later.