Which document is primarily used to record shipment charges agreed for a move?

Which document is primarily used to record shipment charges agreed for a move?

• A. Rate Confirmation
• B. Bill of Lading
• C. Invoice
• D. Purchase Order

Answer: (A)

Rate confirmation records the price and terms negotiated for a shipment. It captures the linehaul rate, any accessorial charges, surcharges, and specific service terms, providing a binding agreement between the carrier and the shipper or broker before the move takes place. This written record confirms exactly what is to be paid and under what conditions, helping prevent disputes about cost. A bill of lading, while essential as the transport contract and receipt for the goods, focuses on the shipment’s movement and title rather than detailing the negotiated charges. An invoice, issued after the service is completed, is what is billed for payment and may reference the rate confirmation, but it isn’t the pre-move price agreement itself. A purchase order authorizes the purchase and the shipment but doesn’t serve as the formal record of the agreed charges for that specific move.

Rate confirmation records the price and terms negotiated for a shipment. It captures the linehaul rate, any accessorial charges, surcharges, and specific service terms, providing a binding agreement between the carrier and the shipper or broker before the move takes place. This written record confirms exactly what is to be paid and under what conditions, helping prevent disputes about cost.

A bill of lading, while essential as the transport contract and receipt for the goods, focuses on the shipment’s movement and title rather than detailing the negotiated charges. An invoice, issued after the service is completed, is what is billed for payment and may reference the rate confirmation, but it isn’t the pre-move price agreement itself. A purchase order authorizes the purchase and the shipment but doesn’t serve as the formal record of the agreed charges for that specific move.