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Spot Market

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This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition.

In spot markets, contracts are executed immediately.

When used in the context of the shipping industry, an example of a spot market would be when ships that are docked in a port enter into a contract to immediately ship crude oil supplied from a nearby company. Rates paid in the spot market have historically been higher than rates paid for time charters (which are shipping contracts specifying the location and duration of shipping in advance) for the lack of guaranteed employment.

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