What Is Contract Freight in Trucking?
Also called: Contract Rate, Contract Loads, Dedicated Freight
Contract freight is freight a shipper or broker agrees to give a carrier at a set rate for a set period, instead of load by load. The contract lists the lanes, the rate, the fuel surcharge and the payment terms. It gives steadier work than spot freight, but the rate may be above or below the market on any given day, and the volume is not always guaranteed.
Last reviewed September 23, 2026
Key Points
- Contract freight is booked ahead at an agreed rate, often for months to a year. Spot freight is booked one load at a time
- A contract usually names the lanes, the rate, how the fuel surcharge works, the extra charges and the payment terms
- Many contracts do not guarantee a number of loads. Read what the contract says about volume
- A contract rate can be higher or lower than the spot rate on a given day. The trade is steadier work for a rate that does not move with the market
- Shippers and brokers look at your authority, insurance and safety record before they offer a contract
- Small carriers often get their first contract freight through brokers, then build toward direct shipper contracts
Contract freight and spot market compared
| Contract freight | Spot market | |
|---|---|---|
| How the rate is set | Agreed ahead for a set period | Load by load, at the price of the day |
| How long it lasts | Often months to a year | One load |
| Volume | May or may not be guaranteed | None promised |
| Rate risk | The market can move past your rate | The rate moves with the market |
| Paperwork | A contract with lanes, rate and terms | A rate confirmation for each load |
What is contract freight?
Contract freight is freight that a carrier has agreed to haul for a customer over a period of time. The customer can be a shipper that ships directly or a broker that moves freight for shippers. The contract sets the lanes, the rate and the terms. Some contracts name a rate per mile. Others name a flat rate per lane. Because the rate is set ahead, the carrier knows what a load will pay, and the shipper knows what it will cost. The work usually comes as load tenders, which are offers of a specific load under the contract.
How does contract freight differ from spot freight?
Spot freight is priced load by load at the going rate, and nothing is promised after the load is delivered. Contract freight is priced ahead and runs for a period. A contract gives you steadier work and a rate you can plan around. It can also hold you to a rate that the market has passed. Spot freight can pay more when trucks are scarce and less when they are plentiful. The table below sets the two side by side.
How do you get freight contracts as an owner-operator?
Start with the basics a shipper or broker will check. You need active operating authority, the required insurance and a clean safety record. Then build a record of on-time deliveries, because customers prefer carriers they can trust. Many owner-operators get contract freight through brokers first, by running a lane again and again and then asking for a rate agreement. Some work with dedicated carriers or with a dispatcher who has contract relationships. Direct shipper contracts are harder to win with one truck, so a small carrier often builds toward them.
What should a freight contract say?
Read these parts closely. The lanes and equipment it covers. The rate, and whether it is per mile or a flat rate. How the fuel surcharge is figured. Extra charges such as detention, layover and lumper fees. The payment terms and how fast you get paid. How long the contract runs and how either side can end it. Insurance and claims rules. And whether any volume is guaranteed. If a term is unclear, ask for it in writing before you sign.
Is contract freight guaranteed?
Not always. Many contracts set a rate but do not promise a number of loads. A shipper may tender a load to you first and then, if you decline, move on to the next carrier. Some contracts do state a volume. Read the volume terms, and ask how loads are tendered. If the contract does not promise volume, treat it as a rate agreement, and keep other freight in your plan.
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Frequently Asked Questions
What is contract freight?+
Contract freight is freight a shipper or broker agrees to give a carrier at a set rate for a set period. The contract names the lanes, the rate and the terms. It is different from spot freight, which is priced one load at a time.
How do I get freight contracts as an owner-operator?+
Get your operating authority and insurance in place, keep a clean safety record, and run on time. Many owner-operators get their first contract freight from brokers by running a lane often and then asking for a rate agreement. Direct shipper contracts usually come later.
Is contract freight better than spot?+
It depends on your goals. Contract freight gives steadier work and a rate you can plan around. Spot freight gives more freedom and can pay more when trucks are scarce. Many carriers use contract freight as a base and spot loads to fill gaps.
How often do freight rates change?+
Spot rates can change daily. A contract rate is fixed until the contract ends or is renegotiated. Many contracts adjust the fuel surcharge as diesel prices change, so check how yours is figured.
Does contract freight guarantee loads?+
Not always. Many contracts set a rate but do not promise a number of loads. Read the volume terms and ask how loads are tendered. If no volume is promised, keep other freight in your plan.
What should I check before signing a freight contract?+
Check the lanes, the rate, how the fuel surcharge works, the detention and other extra charges, the payment terms, how long the contract runs, how it can be ended, and whether any volume is guaranteed. Ask for anything unclear in writing.
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This is industry terminology and typical practice. It is not legal or tax advice. Rates, fees, and rules mentioned are general ranges. Confirm the details on your rate confirmation, carrier agreement, or a current official source.