to-arrive contract

economics

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July 22, 2026

Quick Summary

A "to-arrive" contract is an economic agreement concerning goods that are to arrive at a specified point or be shipped from a point of origin within a set time frame. These contracts are a type of futures contract, which call for the purchase or sale of commodities at a future date.12

Historically, "to-arrive" contracts emerged in places like Chicago before the railroad era. Merchants used them to manage uncertainty about the arrival time and quality of goods, allowing sellers to secure better prices and buyers to mitigate price risks. These contracts are fundamental in commodity markets, providing mechanisms for hedging against price fluctuations and facilitating trade.2

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commodities fraud
Early futures trading
The immediate predecessor was the “to-arrive” contract. This was simply a contract for the purchase of goods upon their arrival. For example, ship cargoes were often sold before their arrival in port on a “to-arrive” basis. The to-arrive contract filled an important need in the grain trade in the United…
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The immediate predecessor was the “to-arrive” contract. This was simply a contract for the purchase of goods upon their arrival. For example, ship cargoes were often sold before their arrival in port on a “to-arrive” basis. The to-arrive contract filled an important need in the grain trade in the United…
Read More