Freight & Logistics Terminology

Rate Confirmation Sheet (Rate Con)

Category: Freight Brokerage • Carrier Dispatch • Financial Contracts
A Rate Confirmation Sheet (commonly known as a Rate Con) is a legally binding contract between a freight broker (or shipper) and a motor carrier. It details the precise financial compensation agreed upon for transporting a specific load, alongside pickup/delivery instructions, route requirements, and operational rules.

Three Pillars of a Rate Con

1. Legal Rate Binding

Establishes the fixed payout amount for the movement of freight, preventing payment disputes once transit is finished.

2. Operational Instructions

Provides essential dispatch data, including pickup numbers, appointment slots, temperature settings, and facility check-in procedures.

3. Invoicing Benchmark

Serves as the primary financial voucher required by carrier billing departments or factoring companies to issue payment.

Required Details on a Rate Confirmation Sheet

A standard Rate Confirmation contains essential legal, operational, and financial specifications:

  • Rate & Fee Breakdown: Total agreed pay, linehaul rate, fuel surcharge (FSC), and pre-approved accessorial fees (detention, layover, lumper fees).
  • Shipper & Consignee Info: Physical facility locations, pickup/delivery dates, strict appointment windows, and emergency contact numbers.
  • Load Identifiers: Load/Order number, Rate Con reference number, pickup numbers, and purchase order (PO) references.
  • Cargo Requirements: Weight, piece count, commodity type, trailer equipment needed (e.g., Dry Van, Reefer, Flatbed), and required temperature settings.
  • Fine & Penalty Clauses: Specific financial deductions for late arrival, missed appointments, double-brokering, or unapproved drop-trailers.
  • Signatures & Sign-off: Legible authorization signatures from both the broker/dispatcher and the assigned carrier driver/owner.

Common Fee Structure & Clauses detailed on a Rate Con

Clause / Term What It Covers Financial Impact
Linehaul Rate Base cost of moving the freight from origin to destination point. Core payout guaranteed upon clean proof of delivery submission.
Detention Rate Compensation paid to the carrier for excessive waiting time at loading or unloading docks (typically after 2 free hours). Hourly fee (e.g., $50–$75/hr) added to the final invoice if documented on the delivery receipt.
Lumper Fee Reimbursement for third-party workers hired to manually unload the trailer at the receiver’s facility. Paid by the broker/shipper upon presentation of an official lumper receipt.
TONU (Truck Ordered Not Used) Compensation paid to a carrier if a load is canceled after the driver has been dispatched or arrived at pickup. Standard flat payout (typically $150–$300) to cover deadhead miles and wasted driver time.
Anti-Double Brokering Clause Strict legal prohibition forbidding the hired carrier from re-selling or sub-contracting the load to another carrier. Violation often results in total forfeiture of load payment and immediate termination of carrier contract.

How a Rate Confirmation Works in Practice

  1. 1
    Rate Negotiation: The freight broker and carrier agree on a price and terms for hauling a specific shipment.
  2. 2
    Generation & Transmission: The broker generates the official Rate Confirmation Sheet via their Transportation Management System (TMS) and sends it to the carrier (via email, portal, or digital signature app).
  3. 3
    Review & Execution: The carrier dispatcher verifies all details, signs the Rate Con, and returns the signed copy to authorize dispatch.
  4. 4
    Billing & Settlement: After delivery, the carrier submits the signed Rate Con alongside the signed Bill of Lading (BOL) or Proof of Delivery (POD) to receive payment or initiate factoring.

Key Difference: Bill of Lading (BOL) vs. Rate Confirmation Sheet

While both are critical freight documents, a Bill of Lading (BOL) focuses on cargo physical characteristics, ownership title, and physical handover between shipper, driver, and consignee. In contrast, a Rate Confirmation Sheet is a purely commercial contract between broker and carrier specifying the payment details and financial conditions of transport.