A rate agreement, also known as a contract rate, is a mutually agreed-upon rate between a shipper and a logistics provider for a specific route and duration, typically ranging from three months to two years. These rates are established by considering factors such as the anticipated freight volume of the shipper and the cost per mile for the logistics provider. Rate agreements help provide stability and predictability in pricing for both parties involved in the transportation arrangement. There are two main types of rate agreements: spot rates, which are determined on a transaction-by-transaction basis, and contract freight rates, which are negotiated for a longer-term commitment.

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