Freight glossary / Pricing and rates

What is Contract rate in freight?

A contract rate is a price agreed in advance for a lane over a set period, usually awarded through a bid and held for a year. It gives the shipper budget certainty and the carrier predictable volume. Contract rates only hold as long as the carrier keeps accepting the freight, which is why award compliance matters more than the number itself.

Also called: contracted rate, primary rate.

Related terms

• Spot rate
• Routing guide
• RFP
• Award
• Tender acceptance