Once a rail car is in motion, its destination isn't necessarily locked. Shippers regularly need to redirect cars mid-transit for commercial reasons — a buyer cancels, a different facility has capacity, weather closes a port, market arbitrage shifts. The railroad accommodates this through diversion and reconsignment. Here's how each works and what it costs.
Diversion vs Reconsignment: The Distinction
Diversion: changes the destination station/yard of the car. Consignee may stay the same (just shipping to a different facility of theirs) or change.
Reconsignment: changes the consignee (legal recipient). Destination may stay the same or change. The cargo is being legally transferred from one buyer to another.
In practice, the terms are often used interchangeably, and most railroad tariffs lump them under "Diversion / Reconsignment" with a unified accessorial. The legal distinction matters for title transfer and Carmack liability allocation.
Process Mechanics
The originating shipper (or, in some cases, the original consignee with proper authority) submits a diversion/reconsignment request to the originating carrier. Submitted via:
- Carrier customer portal (BNSF Customer Tools, UP MyUPRR, NS AccessNS, CSX ShipCSX, CPKC customer portal)
- EDI 426 (Rail Routing Protocol) or 313 (Shipment Status)
- Phone call to the carrier's diversion desk (legacy, sometimes still used for urgent moves)
The request modifies the electronic waybill. The original BoL is amended (or a new BoL issued) showing the new destination/consignee, with a reference back to the original BoL number. The railroad updates routing, holds the car at the next switching point until the new route is loaded, then resumes movement.
Timing Considerations
Diversions are easier the earlier in transit they happen. If the car is still at the origin yard, the request is effectively free (no extra movement). If the car has already moved 80% of the way to original destination and the new destination is back toward origin, the railroad charges for the backtrack mileage plus the standard accessorial.
Most carriers will not divert a car after constructive placement notice has been issued to the original consignee — at that point, the car is "delivered" for tariff purposes and the original consignee has rights.
Accessorial Fees
Typical diversion/reconsignment fees:
- Flat accessorial: $150-500 per car, per carrier whose territory is involved
- Mileage adjustment: if the diversion adds mileage, the new total is rated under AAR Mileage Tariff 18006 (the published rail freight mileage tariff). Net new mileage × commodity rate.
- Held-on-line: if the car has to be held at a switching point while the diversion is processed, hold-on-line charges may apply ($30-100/day depending on carrier).
For Rule 11 interlined moves, each carrier whose segment changes charges its own accessorial. See our Rule 11 explainer for how the segment math handles diversions.
BoL Mechanics
The amended BoL or new BoL must clearly reference:
- Original BoL number
- Original destination / consignee (struck through or noted as "diverted from")
- New destination / consignee (noted as "diverted to")
- Diversion authorization signature (from the party authorized to redirect)
- Diversion date
The free Rail BoL Builder supports "Diversion / Reconsignment" mode where you select a prior BoL (or enter the prior BoL number) and the new BoL renders with the amendment annotations.
Who Can Authorize a Diversion
Typically the consignor (original shipper), but the consignee can request a diversion with proper authority and after they've taken title under the contract of sale. On Collect freight, the consignor usually retains diversion rights until the consignee has paid; on Prepaid, diversion rights may transfer to the consignee at FOB Origin.
The originating carrier requires a clear authority chain. If there's any doubt about who can authorize, the carrier will require written confirmation from the recorded consignor before executing the diversion.
Hazmat Considerations
Hazmat moves can be diverted, but the new destination/route must comply with all §172.604 emergency response phone, §172.204 certification, and Key Train operating restrictions for the new route. If the diversion changes the route into a Key Train territory, additional notification may be required.
Common Use Cases
- Sale-in-transit on bulk commodities. A grain trader sells the cargo mid-transit; reconsignment transfers legal recipient.
- Destination port closure. Port closes due to weather/strike; cargo diverts to a nearby alternative.
- Customer cancellation. Original buyer cancels; shipper diverts to backup customer or back to origin.
- Capacity reallocation. Original destination plant runs short of capacity; diverts to sister plant.
- Market arbitrage. Spot price shifts mid-transit make a different destination more profitable.
For shippers running consistent in-transit-redirect patterns, model the accessorial exposure into your unit economics. Our free rail rate quote tool returns indicative carload estimates that reflect typical accessorial structures.
Frequently Asked Questions
What's the difference between diversion and reconsignment on rail?
Diversion changes the destination station/yard of the car (consignee may stay the same or change). Reconsignment changes the consignee (legal recipient; destination may or may not change). Most railroad tariffs lump them under "Diversion / Reconsignment" with a unified accessorial. The legal distinction matters for title transfer and Carmack liability allocation but operationally they're handled the same way.
How much does it cost to divert a rail car in transit?
Typically $150-500 per car as a flat accessorial, per carrier whose territory is involved. Additional charges if the diversion adds mileage (rated under AAR Mileage Tariff 18006) or if the car must be held on line while the diversion is processed ($30-100/day). For Rule 11 interlined moves, each carrier whose segment changes charges its own accessorial.
How late in transit can I divert a car?
Up until constructive placement notice has been issued to the original consignee. Once the railroad notifies the original consignee that the car is ready for unload, the car is "delivered" for tariff purposes and the original consignee has rights. Diversions earlier in transit are simpler and cheaper. Diversions after backtrack movement cost more because the railroad rates the additional mileage.
Who authorizes a rail diversion or reconsignment?
Typically the consignor (original shipper). The consignee can authorize a diversion if they've taken title under the contract of sale (often after Collect payment or FOB Origin transfer). The originating carrier requires a clear authority chain — written confirmation from the recorded consignor if there's any doubt.
Can hazmat rail cars be diverted?
Yes, but the new destination and route must comply with all §172.604 emergency response phone, §172.204 certification, and §174 (carriage by rail) requirements for the new route. If the diversion changes the route into Key Train (OT-55-R) territory, additional notification and operating restrictions may apply.
How do I document a diversion on the BoL?
The amended BoL or new BoL must reference the original BoL number, the original and new destinations/consignees, the diversion authorization signature, and the diversion date. The Steel Wheel Rail BoL Builder supports a "Diversion / Reconsignment" mode that auto-populates the amendment annotations and links to the prior BoL.
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