Spot Rate

Spot rates swing with capacity, so they can be far cheaper or far more expensive than contract rates depending on the market. Brands with irregular or seasonal freight often buy spot; brands with steady lanes usually save by contracting.

Should I use spot rates or contract rates for truckload freight?

Use contract rates for steady, predictable lanes where you want budget certainty and reliable capacity. Use spot rates for one-off or irregular moves, or when the spot market is clearly below your contracted rates.

• Contract RateA 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.
• Freight BrokerA licensed intermediary that arranges truck transportation by matching a shipper's load with a motor carrier, without operating the trucks itself, and earns the margin between the shipper rate and carrier rate.
• Full TruckloadA shipment that uses an entire trailer, usually a 53-foot dry van in the US, moving directly from origin to destination.
• Less-Than-TruckloadFreight shipping for loads too large for parcel but not large enough to fill a truck, where several shippers share trailer space.