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Why Chicago brokers call contract rates ‘paper rates’

Feb 20, 2019 at 01:46 PM CST

FreightWaves staff members and writers often speak with freight brokers and third-party logistics providers (3PLs), from front-line salespeople and carrier reps to C-suite executives, in order to learn about the current state of the freight market, how brokerages are impacted, and to try to glean insights into what may be coming next. In recent conversations, we’ve come across an interesting slang term from our contacts in Chicago – some brokers refer to contract rates as ‘paper rates.’ Why?