This transaction set communicates a motor carrier’s response to a rate proposal submitted by a shipper or freight broker. The motor carrier sends the 108 to the requesting party (shipper, broker, or freight forwarder) to accept, reject, or counter the proposed rates and service terms. The response includes identification of the carrier via the BLR (Transportation Carrier Identification) segment, details about the parties involved through the N1 loop (which captures company names, addresses, and contacts), and the specific rate decisions through the CA1 and LC1 segments that define which lanes are being accepted, rejected, or modified along with commitment levels.

Consider a scenario where XYZ Logistics requests expedited rates from TruckPro Carriers for regular shipments between Dallas and Atlanta. TruckPro reviews the proposal and responds with an X12 108 indicating they can commit to the requested lanes with modified pricing on certain volumes. The response populates the N1 loop with both XYZ Logistics’ and TruckPro’s company information and contact details, uses multiple iterations of the CA1 segment to identify each specific rate proposal being addressed, and includes corresponding LC1 segments specifying TruckPro’s commitment level for weekly or monthly volume commitments. XYZ Logistics receives this response and can immediately determine which rates have been accepted and begin booking shipments accordingly.