Efficient paperwork practices are crucial for owner-operators to receive prompt and consistent payment for their work. This post explains the essential documents that brokers and factoring companies require from carriers to issue payment. 

Rate Confirmation (RateCon)

A Rate Confirmation, or RateCon, is a contractual agreement between a broker and a carrier for a specific load. It includes payment details, delivery requirements, and paperwork submission guidelines. Brokers generate RateCons to carriers using their Transportation Management System (TMS).

RateCons must be signed by the carrier to be considered complete. While some brokers accept unsigned RateCons for efficiency, carriers may face payment denial if the RateCon is left unsigned. An unsigned RateCon is technically an incomplete contract. We strongly recommend that all carriers sign their RateCons so that they can ensure payment for their hard work. 

Read more on why RateCons are critical to the success of trucking businesses.

Bill of Lading (BOL)

A Bill of Lading, commonly known as a BOL, is the document that travels with the cargo. It serves as a receipt of goods between the shipper and the receiver. BOLs are issued by the shipper and list cargo details as well as all pickup and delivery locations and dates. Carriers must keep possession of the BOL at all times during transit and, when required, collect signatures from all parties required. Most commonly, BOLs must be signed by the receiver and carrier upon delivery. 

Proof of Delivery (POD)

A Proof of Delivery, commonly known as a POD, is a photograph of a complete BOL that validates the successful completion of a freight delivery.

• Most brokers collect PODs from carriers in the form of a single PDF with multiple photos
• The photos must be clear (all written text must be legible),
• Include all four corners of the document pages, and
• Show signatures and timestamps from the receiver and carrier.
• If the carrier qualifies for detention pay, most brokers require that the receiver note the in/out times of the carrier directly on the BOL.

Other accessorial documents

Accessorial documents validate other (“accessorial”) fees the broker agrees to pay the carrier that are not line haul (the fee to move freight from point A to point B). Some accessorial fees are actually reimbursements, like lumper and toll fees; other accessorial fees are compensation for time spent, like detention, truck order not used (TONU), and layover fees. All accessorial fees will be delineated on the RateCon, and some require documentation like receipts or signed timestamps. 

See this article for more examples of accessorial fees.

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