Settlement Protocol
A financial correction aligns the invoiced mass of a paper shipment with its theoretical mass at a specified moisture content. The commercial weight adjustment standardizes the price paid for cellulose against the variable water weight held within the fibres at the time of weighing. It applies when the measured moisture deviates from the agreed trade standard, typically set at a percentage such as seven or eight percent for woodpulp and certain paperboard grades.
Calculation Logic
Computation relies on the ratio between the actual dry matter found during testing and the dry matter required by the contractual standard. If a delivery contains more water than the specified limit, the buyer reduces the payable weight to avoid paying for excess moisture that will eventually evaporate. This mechanism prevents disputes over weight loss during transit or storage.
Precise sampling ensures that the adjustment reflects the entire lot rather than a single moist or dry spot. Mathematical precision protects the margins of both the converter and the producer by isolating the commodity weight from environmental variables.
Trade Tolerance
Boundaries for these corrections are defined by international trade rules or individual supply contracts. A small variance often falls within a franchise where no claim is made, but larger deviations trigger the full adjustment. Large shipments of linerboard or kraft paper rely on this mathematical alignment to ensure that value is exchanged for fibre rather than the local humidity of the mill floor.
