Guide
Rate con red flags: read these ten clauses before you sign
You sign a rate confirmation in under a minute. You live with it for 30 days or more. Most money lost later was written into a clause you scrolled past.
In short
- Read the whole rate con, not only the rate and the stops. Two minutes here saves a dispute later.
- Mark every clause that costs you money: slow payment terms, no detention, unclear lumper rules, deductions and claims wording.
- If a clause is vague, ask for a written answer before the truck moves. A reply by email counts as a record.
- We do not give legal advice. When a clause looks risky, ask a professional.
Why the rate con is the real contract
The rate con is the document the broker's accounts payable team checks your invoice against. If your invoice asks for money the rate con does not mention, the clerk has no reason to pay it. So the page does two jobs: it sets the price, and it sets what you are allowed to bill.
The figure marks two clauses in red. Those are the ones that most often turn a good rate into a short pay. The table below lists ten clauses to scan. Our red-flag checker runs a similar pass on what you can see about a broker, and the rate con vs invoice guide covers what happens when the two documents disagree.
A two-minute read, in order
Match the price
Compare the rate and the stops to what you agreed by phone or message. A different number is a stop sign, not a typo to fix later.
Find the payment clause
Note the days to pay and from which date they count: delivery, invoice, or receipt of paperwork.
Find the accessorials
Free time, detention rate, layover, TONU, lumper. If a charge is not named, assume you will have to argue for it.
Find the deductions
Look for words like chargeback, offset, fee, or "may deduct". Ask what each one covers.
Ask in writing
Send one email with the questions. Save the answer with the signed rate con.
Ten clauses and the question for each
| Clause | What to look for | Question to ask |
|---|---|---|
| Payment terms | Days to pay and what starts the count | Does the clock start at delivery or at invoice receipt? |
| Quick pay | Any fee or percent named for early payment | What is the exact fee and who decides eligibility? |
| Free time and detention | Hours of free time, hourly rate, any cap | Is detention in this document at all? |
| Layover and TONU | Whether they are named, and the amounts | What happens if the load cancels after I arrive? |
| Lumper | Who approves it, what proof is needed | Will you approve it in writing before my driver pays? |
| Fuel surcharge | Included in the rate or listed apart | Is the surcharge part of the number I see? |
| Deductions | Chargebacks, offsets, admin fees | Which fees can be taken and on what grounds? |
| Claims wording | Who bears loss or damage, how a claim is filed | Where do I send a claim and what proof do you need? |
| Appointment rules | Late arrival penalties, check call rules | What is the penalty if the dock runs late, not me? |
| Parties named | Which company is the broker, which is the shipper | Does the name match the authority record? |
Example: a $150 gap hidden in the page EXAMPLE VALUES
Example data. You agreed $2,400 by phone. The rate con says $2,250 and nobody caught it.
| Line | Amount |
|---|---|
| Agreed rate | $2,400 |
| Rate on the document | $2,250 |
| Gap on one load | $150 |
| Same slip on 4 loads in a quarter | $600 |
Four loads is an invented count. The point is the habit: a 30 second compare of the rate con to your message catches it before the truck moves. Use the short pay cost tool with your own load counts to see what a year of small gaps adds up to.
Four ways people lose on a rate con
- Signing from the phone. Small print is hard to read on a phone. Open it on a larger screen or print it.
- Trusting the earlier message. The rate con replaces the chat. If they differ, the document is what the clerk checks.
- Skipping the party names. The company on the rate con should be the one you checked. See double brokering.
- Leaving questions for later. After pickup, you have less say. Ask before the truck moves.
Copy and fill in
Keep it factual and short. Save the reply with the load file.
The clause you cannot find is a clause you may not have
If detention, TONU or lumper is not mentioned, do not assume it will be paid. Ask the broker to add it or confirm it by email. Silence on paper usually means no payment.
We do not give legal, tax or financial advice. Your contracts come first.
Questions
Can I ask the broker to change a rate con after I sign?
You can ask. Whether they agree depends on the broker and the terms. Ask before pickup, in writing, and save the reply.
What if the broker sends a rate con with different terms than we agreed?
Do not accept silently. Reply with the agreed terms, ask for a corrected document, and keep both versions.
Is a clause in the rate con always enforceable?
We cannot say. Contract rules vary and we do not give legal advice. Check your contract and verify with a professional if a clause matters to you.
Does MileCFO read my rate cons?
The audit compares rate cons to invoices and payments for your last 20 loads. See the free audit.
Related: rate con vs invoice, rate con vs invoice checklist, broker vetting, accessorial recovery calendar, dry van fleets, all guides.
See what your last 20 loads show.
One short form. We reply by email with the next step, and a one-page report follows. Free, no obligation.
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