EDI 108 Response to a Motor Carrier Rate Proposal

The primary purpose of EDI 108 is to streamline the rate negotiation process between shippers/receivers and motor carriers. In this guide, you'll learn about EDI 108 transaction sets.

What is an EDI 108?

The EDI 108 transaction set, known as the Response to a Motor Carrier Rate Proposal, is used to respond to a rate proposal sent by a motor carrier. This document enables shippers or consignees to accept, reject, or counter the proposed rates and conditions provided by the carrier. Here’s a breakdown of its components and purposes:

• Communicate acceptance of the proposed rates and terms.
• Reject the proposal and provide reasons for rejection.
• Counter with modified rates or conditions.

EDI 108 and Related EDI Documents

EDI 106: Request for Motor Carrier Rate Proposal
• EDI 210: Motor Carrier Freight Details and Invoice

What are the Key Elements of EDI 108?

An EDI 108 typically includes:

• Delivery Information: Date, time, and location of delivery.
• Delivery Quantities: Total quantities delivered, returned, or adjusted.
• Financial Information: Total invoice amount, payment terms, and other financial details.
• Carrier Information: Carrier name, tracking number, and other relevant data.

How is EDI 108 Response to a Motor Carrier Rate Proposal used?

• Proposal Reception: The shipper or consignee receives an EDI 107 Motor Carrier Rate Proposal from the carrier.
• Evaluation: The proposed rates and terms are reviewed.
• Response Creation: An EDI 108 Response to the Motor Carrier Rate Proposal is created, indicating acceptance, rejection, or a counterproposal.
• Transmission: The EDI 108 is transmitted to the carrier.
• Acknowledgment: The carrier acknowledges the receipt of the EDI 108, typically using an EDI 997 Functional Acknowledgement.

Benefits of EDI 108

EDI 108, the Response to a Motor Carrier Rate Proposal, offers several advantages for both shippers/receivers and carriers:

• Increased Efficiency: Automates the rate negotiation process, saving time and resources for both parties.
• Improved Accuracy: Standardized format reduces errors and ensures consistent data exchange.
• Faster Rate Agreement: Expedites the process of accepting, rejecting, or negotiating rates.
• Enhanced Communication: Provides a clear and structured method for communicating rate-related information.
• Reduced Costs: Eliminates manual paperwork and associated costs.
• Better Decision Making: Provides accurate and timely data for informed rate decisions.
• Improved Carrier Selection: Enables efficient comparison of rates and services from multiple carriers.

By adopting EDI 108, businesses can streamline their transportation operations and achieve cost savings while improving overall supply chain efficiency.

EDI 108 Format

To give you a general idea of the structure, here is a simplified example using only a few key segments:

ISA*00* *00* *ZZ*SHIPPERID*ZZ*CARRIERID*YY*MMDD*HHMM*ZZ*000001*000001*0*T*:

GS*IN*SHIPPERID*CARRIERID*20230101*000001*000001*0*X*:

ST*108*0001*000001*0*0*:

BEG*00*20230101*000001*:

DTM*001*20230101*:

REF*QQ*RATEPROPOSALNUMBER*:

RPQ*AA*ACCEPTED*:

SE*108*0001*000001*:

GE*1*000001*:

IEA*0*000001*:

General Structure Overview

ISA: Interchange Header Segment

GS: Group Header Segment

ST: Transaction Set Header Segment

BEG: Beginning of Message Segment

DTM: Date/Time Reference Segment (for transaction date)

REF: Reference Identification Segment (for rate proposal number)

RPQ: Rate Proposal Qualifier Segment (acceptance, rejection, or counteroffer)

DTM: Date/Time Reference Segment (for effective date of rates)

RCL: Rate and Charge Segment (for rate details, if applicable)

SVC: Service Information Segment (for service details, if applicable)

SE: Transaction Set Trailer Segment

GE: Group Trailer Segment

IEA: Interchange Trailer Segment

Each segment contains specific data elements. For example, the RCL segment might include information about the rate basis, rate, and charge.

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