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Hedging Applications for Trucking Carriers, Shippers & 3PLs

Aug 22, 2019 at 12:54 PM CST

To hedge against the risk of decreasing trucking rates in the future, a trucking carrier as a “seller” of trucking capacity, would go short on the best fit trucking freight futures contract to protect its revenue streams. If rates do end up decreasing, the drop in its revenues would be offset by the profits from the freight futures contract in the carrier’s futures account.