How to Effectively Use RateCon as a New Carrier or Small Fleet: Part 2 of 6
- Josh Charles
- 3 days ago
- 3 min read
What to Look for in a RateCon — Red Flags & Must-Haves
Now that we know what a RateCon is and why it’s so important, let’s break down the specific details you need to check to ensure that you’re fully protected and not leaving money on the table.
What to Look for in a RateCon
A RateCon is not just a piece of paper — it’s your contract, your guarantee, and your proof of payment. It’s essential to understand the details and make sure the RateCon aligns with the agreement you discussed with the broker. Here’s what to check to protect yourself:
Must-Haves in Every RateCon:
Agreed Rate for the Load: The most critical part of any RateCon is the rate. Double-check that the agreed-upon rate is clearly stated, and if there are any special conditions like fuel surcharges, accessorials, or discounts, they should be listed here as well.
Pick-up and Delivery Details: Ensure the pickup and delivery addresses are clearly listed. This avoids confusion about the route, delays, or issues with wrong locations. Additionally, ensure the appointment windows and timeframes are correct and feasible for you.
Accessorial Pay: A great RateCon includes all additional pay for services like:
Detention (if the load is delayed)
Layover (if you’re stuck overnight)
Fuel surcharges
Stop-off pay
Be sure these items are clearly listed and that they match the agreement you had with the broker. If they’re missing, ask for clarification before moving the load.
Special Instructions: Whether it’s hazmat materials, temperature control, or the need for a liftgate, these special instructions should be listed in the RateCon. These can be crucial for your safety, equipment, and operation, and you don’t want any surprises down the road.
Red Flags to Watch Out For
While many RateCons are straightforward, there are red flags that could signal potential issues. These are things you must watch out for before you hit the road:
Missing or Vague Details: If the RateCon doesn’t have clear and detailed information (like addresses, rates, or timelines), it’s a red flag. A vague RateCon could lead to disputes or payment issues down the line.
No Signed RateCon: A verbal agreement or email confirmation doesn’t cut it. Always get the signed RateCon from the broker before you leave. If they don’t provide one or hesitate to send it over, don’t move the load until you have it in writing.
Changes After You’ve Signed: If the broker tries to change terms after the RateCon has been signed, especially things like rates, pay, or services promised, this is a huge red flag. Changes should only be made with your consent and new signatures.
Unclear Payment Terms: Be sure you understand the payment terms listed in the RateCon. Look for language like:
“Paid upon delivery” vs. “Paid within X days after delivery”
Clear instructions for invoicing and payment submission
If this isn’t listed or is vague, clarify the terms before signing.
Lack of Broker Information: Always ensure the broker's contact information (name, phone, email) is listed. If it’s missing or incomplete, you could face communication issues later if something goes wrong with the load.
How to Handle RateCon Discrepancies:
If you spot any of the red flags or discrepancies in the RateCon:
Don’t sign immediately. Take the time to review the document carefully.
Ask for clarification or corrections if necessary.
If needed, negotiate any terms or discrepancies before agreeing to the load.
Quick Tip
If you have any doubts or feel that the terms aren’t aligned with what was promised, speak up. The last thing you want is to haul a load and be left without the agreed-upon pay or stuck with extra charges.
Final Thoughts
The RateCon is a key piece in ensuring that your business stays protected from rate disputes and payment issues. By carefully reviewing each element of the RateCon, you’re safeguarding your business and making sure you get paid fairly for every load.
Up next in Part 3 of the series: How to Build Strong Foundations for Your New Trucking Company: In Part 3, we’ll dive into how to set up your new trucking company for success, from choosing the right business structure to establishing contracts with brokers. Building a solid foundation now will set you up for long-term success and growth in the industry.
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