Contract rate

A contract rate is a per-mile price agreed in advance for a specific lane and committed volume, usually over months, between a shipper (or broker) and a carrier. It trades the spot market’s upside for predictability: you give up the chance to cash in on a rate spike in exchange for steady, plannable revenue.

Why it matters: contract freight is the backbone of larger fleets and is harder for a single owner-operator to win directly, but dedicated lanes and mini-bids can offer it. In a hot market, contract rates often sit below spot; in a soft market, they can be a lifeline above spot. Knowing which kind of rate you’re being offered – and judging both against your cost per mile – is part of pricing your truck right. Watch the market on the Spot Rate Index.