Contract rates, which comprise roughly 80% of the trucking market, are based on an agreement between a shipper of goods and a transportation provider (asset or non-asset based) for a specific origin and destination and an estimated volume. Contracted rates are usually non-binding agreements based on estimated shipping volumes by the shipper and a per-mile rate quoted by the transportation provider. These contracted freight rates can be broken or adjusted at any time by either party and are often referred to as paper rates.
