Rate Confirmation

What is on it

• Linehaul rate and fuel surcharge treatment
• Load and reference numbers
• Pickup and delivery locations, with appointment windows
• Detention terms: when the free period ends, and the hourly rate
• Layover and other accessorial terms
• Payment schedule, such as QuickPay or net terms
• Claims liability and cargo insurance requirements
• Special instructions such as gate codes, lumper arrangements and equipment requirements

The gap between the call and the document

Most rate confirmations say what the broker said on the phone. The exceptions are expensive, and they are rarely dramatic: a rate that is fifty dollars off, an appointment window that shifted, a detention clause that is stricter than described.

They get signed anyway, because the ratecon arrives while the person reading it is doing three other things and the rate at the top looks right.

Also a fraud vector

Broker impersonation almost always arrives as a rate confirmation. The document looks correct, with the right logo, the right format, plausible reference numbers and sometimes a real broker's MC number. What usually does not hold up is the sending email domain.

Checking the domain against the earlier conversation is the single most useful thirty seconds you can spend on a ratecon. More on double brokering.

What to check before signing

1. The rate matches what was agreed, including whether FSC is separate
2. The sending domain matches the broker you negotiated with
3. The detention terms are what you were told
4. The appointment windows are achievable from your current position
5. The claims liability is not unusual
6. The reference numbers match the load discussed

Related terms

BOL · Detention · Accessorials · Double brokering · FSC