How to read a rate confirmation: 12 clauses that cost carriers money

The rate on page 1 is what the load pays if everything goes right. The clauses on page 2 and 3 decide what it pays when something doesn't. Here are twelve of them, quoted from real rate confirmations, and what to check before the truck rolls.

Updated November 3, 2026 · Tandem Fleet

What a rate confirmation is

A rate confirmation (rate con) is the broker's agreement with the carrier for one load: who hauls it, what it pays, where and when it picks up and delivers, and the rules that come with it. Once it is signed, those rules are what the broker pays by. Most disputes about a deduction end with someone pointing at a sentence on the rate con.

The examples below are quoted from real rate confirmations received by a small carrier in 2026. Broker and platform names are removed; some sentences are shortened or changed from capitals to normal case. Every broker writes these differently, so read your own rate con, not this page, before you sign.

Check these five things first

The rate and what is in it. Linehaul, fuel, and any extras listed separately. The total on the page is what you invoice.
Every stop, in order, with its address, date and appointment time or window. A "window" and a fixed appointment are not the same promise.
The reference numbers the driver will be asked for at the gate: pickup number, PO, appointment number. A missing pickup number is a call to the broker now, not at the dock.
Equipment and temperature. Trailer type and length, and for a reefer the set point and whether it runs continuous or on cycle.
Weight and commodity, so the load is legal and the truck is the right one.

The 12 clauses

1. Late delivery fee

"$300 fee if late for delivery and not notified 2 hours prior or in real time."

What it means: being late costs $300 unless the broker was told at least 2 hours ahead. What to check: who must notify (driver or dispatch), how (call, email, tracking platform), and whether the clock is the appointment time or the end of the window.

2. Late pickup or delivery minimum

"Late to pickup or delivery may result in minimum fee of $150"

What it means: this one covers pickup too, and $150 is the floor, not the ceiling. What to check: whether a late pickup that still delivers on time is charged. Ask before you sign if the rate con doesn't say.

3. Missed appointment

"Minimum $100 charge for missed appointments."
"Missed appointments: produce $500/day, non-produce reefer/dry $250/day."

What it means: a missed appointment can be charged per day, and produce costs double. What to check: what counts as missed (any minute late, or outside the window), and whether a rescheduled appointment the broker agreed to in writing is safe.

4. Tracking deduction

"Deductions in case of failure: LATE DELIVERY CHARGE -$300; NO CHECK CALL / TRACKING -$100."
"Any carrier contracted on a [broker] load that does not accept [the platform] will have $150 deducted from the rate."

What it means: not tracking costs money even when the load delivers on time. What to check: which tracking platform, when it must be accepted (before pickup is common), and whether check calls by phone are accepted instead.

5. Tracking switched off after loading

"This load requires GPS tracking - mandatory for the shipper. If tracking is turned off once loaded there is a $200 fine."
"Settings must stay on Always Allow location for duration of shipment."

What it means: tracking has to run for the whole trip, not just at pickup. A phone that kills the app in the background can cost the fine. What to check: that the driver's phone keeps the tracking app allowed to run in the background for the whole load.

6. No tracking, no detention

"If not tracking there won't be any detention, tracking has to be on all times in order to approve detention."
"No Detention or Layover will be approved if Driver can not accept [the] Tracking."

What it means: tracking is the broker's proof of when the truck arrived and left. Without it, a detention or layover claim is refused before anyone reads it. What to check: treat tracking as a condition of getting paid for waiting, not only as a fine.

7. Detention terms

"Detention $25/hour after 2 free hours with prior notice to broker"
"Detention $25.00/hour after 2 hours & carrier notifies us PRIOR to detention occurring"

What it means: the free time, the hourly amount and a notice rule. The notice rule is the one that gets missed: the broker must hear from you before detention starts, not after. What to check: free time (2 or 3 hours is common), the hourly amount, whether there is a cap, and exactly who must be told and when. More on detention, TONU and layover

8. Layover cap

"Detention caps $250 for layover."

What it means: once the wait turns into an overnight, the total is capped. A full day lost can pay $250. What to check: whether layover is paid at all, the cap, and whether detention stops counting when layover starts.

9. Seals

"Seals must arrive intact or full load claim and $1000 fine"

What it means: a broken or missing seal can turn into a claim for the whole load plus a fine. What to check: that the seal number is written on the BOL at pickup, a photo of the seal is taken, and nobody opens the doors before the receiver does.

10. Paperwork deadline

"Submit BOL/POD with receiver signature within deadline or $50 deduction"

What it means: a signed POD that sits in the truck for a week costs money, on top of delaying the invoice. What to check: the deadline in hours or days, where the documents go (email, portal, app), and that the receiver's signature is on it.

11. Pallet exchange

"A fee of $7.50 per pallet will be charged on loads that the carrier is responsible to supply pallets for exchange"

What it means: if the load is pallet exchange and the truck has no pallets to swap, each one is charged. On a full trailer that adds up. What to check: whether the load is exchange or not, and who pays when the shipper or receiver refuses to exchange.

12. Payment terms, advances and lumpers

"Payment settlements 30 days from first business day after invoice receipt"
"Fuel advances limited to $1000 per day, max 50% of carrier rate, subject to 2% fee"
"Third party unloading receipts reimbursed 100% less 2% if paid by broker advance"

What it means: when you get paid, and what money taken early costs. Here the clock starts after the invoice is received, an advance costs 2%, and a lumper paid through an advance comes back 2% short. What to check: the payment days, any quick-pay fee, and that the lumper receipt goes in with the invoice.

Rate con checklist

Print it, or keep it next to the screen. Go through it before you dispatch.

Rate matches what was agreed on the phone or the load board, extras listed.
Every stop: address, date, appointment time or window, in the right order.
Pickup, PO and appointment numbers present for every stop. Missing one? Ask now.
Equipment, length, reefer temperature and run mode match the truck and trailer.
Late fee: amount, and how and how early the broker must be told.
Missed appointment charge, and whether it is per day.
Tracking: which platform, accepted before pickup, running the whole trip.
Detention: free hours, hourly amount, cap, and the notice rule.
Layover and TONU: paid or not, and how much.
Seal: number on the BOL, photo at pickup.
Paperwork: BOL/POD deadline and where to send it.
Pallet exchange: yes or no, and the per-pallet fee.
Payment terms, quick-pay and advance fees, lumper reimbursement.
Anything unclear: ask the broker and get the answer in writing before dispatch.

This guide is practical advice, not legal advice. When a clause is unclear, ask the broker to clarify it in writing before you dispatch.

Tandem Fleet reads the rate con for you. It fills the load and lists every one of these clauses with its dollar amount, so you see the $300 line before the truck rolls. How the reader works

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