Contract Rate
A contract rate is a negotiated freight price agreed between a shipper and a carrier or broker for specific lanes or volumes over a set term, commonly six to twelve months.
Why it matters for ecommerce brands
Contract rates give predictable costs, but carriers can reject tenders when the spot market rises above the contracted price. Track tender acceptance rates alongside the price itself.
Common questions
- Why does a carrier reject loads even though we have a contract rate?
- Most truckload contracts commit price, not capacity, so carriers can decline tenders when spot rates are higher or their trucks are needed elsewhere. Rejected loads then go to backup carriers or the spot market, usually at a higher cost.
Cite this entry
"Contract Rate." Fulfillment Lexicon, last reviewed October 16, 2026. https://fulfillment.wiki/glossary/contract-rate/