Texas SolutionsTruck Dispatch

Broker Setup, Rate Confirmations and Spot vs Contract Rates

By Texas Solutions Dispatch Team · · 4 min read

Brokers How dispatch works
Broker Setup, Rate Confirmations and Spot vs Contract Rates
Quick answer

How do carriers get set up with freight brokers?

To get set up with a broker, a carrier completes the broker's carrier packet, usually online. It typically includes your MC authority, certificate of insurance, W-9, a signed broker-carrier agreement and payment details. Once approved, the broker can send you a rate confirmation for a load.

Before you haul a single brokered load, you need to know how to get set up with brokers. You also need to read a rate confirmation, understand spot rates vs contract rates, and know how truck dispatch works from start to finish. This guide covers all four in plain terms.

How to get set up with brokers

Brokers must check a carrier before they give it freight. That check is called carrier setup with brokers, and it happens through a carrier packet. Many brokers use online onboarding portals; some still use email.

What a broker carrier packet usually asks for

  • MC authority letter showing active operating authority
  • Certificate of insurance (COI) naming the broker as certificate holder
  • W-9 with your business name and tax ID
  • Signed broker-carrier agreement
  • Payment details: your bank information, or a notice of assignment from your factoring company
  • Contact details for dispatch, billing and the driver

Tips for faster broker carrier packet setup

  1. Keep every document as a clean PDF, ready to send from your phone.
  2. Ask your insurance agent how fast they send certificates. Slow COIs slow setups.
  3. Make sure your business name matches on every document.
  4. If you factor, have your notice of assignment ready. See freight factoring for owner-operators explained.
  5. Get set up with brokers in your lanes before you need them.

New carriers may find that some brokers have extra requirements for new MC numbers. See dispatch for new authority.

What is a rate confirmation?

A rate confirmation (often called a rate con) is the written agreement for one load between the broker and the carrier. It is what you will be paid on, so read every line.

What to check on a rate confirmation

  • Rate: linehaul and any fuel surcharge or accessorial pay
  • Pickup and delivery: addresses, dates, appointment times
  • Load details: commodity, weight, piece count, equipment type, temperature for reefer
  • Extra charges: detention, layover, lumper, TONU (truck ordered not used)
  • Rules: tracking requirements, check calls, fines for late updates
  • Payment terms: when and how you get paid, and what paperwork is needed

If something on the rate con does not match what was agreed on the phone, fix it before pickup.

Worked example: reading a rate con

Your rate con shows:

  • Linehaul: $2,400 for 800 miles (that is $2,400 / 800 = $3.00 per mile)
  • Detention: $50 per hour after 2 free hours
  • Lumper: reimbursed with receipt

At the receiver, you wait 5 hours. The lumper charges $200.

  • Billable detention: 5 - 2 = 3 hours x $50 = $150
  • Lumper reimbursement: $200
  • Total invoice: $2,400 + $150 + $200 = $2,750

Without documented arrival and departure times, that $150 can be lost. Check claims with the detention pay calculator.

Spot rates vs contract rates

Spot rates are prices for one load, set by supply and demand on the day. Most loads on load boards are spot freight.

Contract rates are agreed ahead of time for repeat freight in a lane, often for months.

Simple comparison

Say you run one 1,000-mile lane each week for four weeks.

  • Contract at $2.80 a mile: 4 x $2,800 = $11,200
  • Spot at $2.50, $3.40, $2.70 and $3.10 a mile: $2,500 + $3,400 + $2,700 + $3,100 = $11,700, an average of about $2.93 a mile

In this example spot paid more, but week one was $300 under the contract rate. In another month it could go the other way. These are example numbers, not market data.

  • Spot pros: can pay more when trucks are scarce, flexible
  • Spot cons: unpredictable, more time spent searching
  • Contract pros: steady freight, easier planning
  • Contract cons: can lag behind a rising market, commitments to keep

Many small carriers run mostly spot freight and build repeat lanes over time.

How do dispatchers find loads?

Dispatchers use several sources at once:

  • Load boards for posted spot freight
  • Broker networks: calling brokers who move freight in your lanes
  • Repeat lanes: asking brokers for the same load again
  • Planning ahead: searching for the next load before the current one delivers, to cut deadhead

How does truck dispatch work?

A typical flow looks like this:

  1. Onboarding. The dispatcher learns your truck, equipment, home base, lanes and minimum rate.
  2. Load search. They search boards and call brokers.
  3. Negotiation. They negotiate the rate and terms.
  4. Your approval. You say yes or no to every load.
  5. Broker setup. They complete the carrier packet if needed.
  6. Rate confirmation. They check it matches what was agreed.
  7. Trip support. Check calls, appointment changes and problems on the road.
  8. Billing. Invoicing with BOL and receipts, plus detention and lumper follow-up.

Read more about what a truck dispatcher does.

How Texas Solutions helps

Texas Solutions Truck Dispatch handles broker carrier packets and setups, load search, rate negotiation, rate confirmation checks, invoicing, and detention and lumper collection. We also offer trucking back office services like factoring coordination and IFTA filing. Dispatchers are available 24/7, and you approve every load. We are not a broker; loads are booked under your own authority.

The fee is a percentage of weekly gross, OTR, with no setup fee or contract, and your first load is dispatched free. Get a free estimate or contact us.

Frequently asked questions

How do I get set up with brokers?

Contact the broker or open their onboarding link, then submit your MC authority, certificate of insurance, W-9, signed broker-carrier agreement and payment or factoring details. Approval can be quick if your documents are complete.

What is a rate confirmation in trucking?

A rate confirmation is the written agreement for one load between the broker and the carrier. It lists the rate, pickup and delivery details, extra charges like detention and lumper, and payment terms. Read it before you dispatch.

What is the difference between spot rates and contract rates?

Spot rates are prices for a single load, set by the market on the day. Contract rates are agreed for repeat freight over a period. Spot rates move up and down more; contract rates are steadier but can fall behind the market.

How do dispatchers find loads?

Dispatchers search load boards, call brokers they work with, watch for repeat lanes, and plan the next load before the current one delivers. They then negotiate the rate and send the details to the carrier for approval.

How does truck dispatch work?

The dispatcher learns your truck, lanes and minimum rate, searches and negotiates loads, gets your approval, handles the broker setup and rate confirmation, then helps with invoicing and extra charges after delivery.

About the author

Texas Solutions Dispatch Team at Texas Solutions, a truck dispatch service for owner-operators and small fleets based in Midland, Texas. We negotiate loads, plan lanes and handle broker paperwork for a percentage of weekly gross: 5% for semis, 8% for hotshots, 10% for box trucks. Rates, fees and rules change, so confirm current figures with the relevant agency or provider before you act.

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