Why Chicago brokers call contract rates ‘paper rates’
Shippers and carriers alike are exposed to spot market volatility
There are at least three ways to interpret the ‘paper’ in ‘paper rates.’ The first is that the rates aren’t worth the paper they’re printed on, but that feels too harsh. The second could be that contract rates are ‘just what’s on paper,’ implying that they do not necessarily hold up in the real world. The third possible connotation is that ‘paper’ means something like ‘official’ or agreed-upon.
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Article by : John Paul Hampstead
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