Reconsignment – Here’s a shipping term that you might be familiar with if you’ve ever had a change of plans with your freight. A reconsignment happens when freight that is already in transit is re-directed from one delivery location to another. The charges associated with this can vary based on how far apart the delivery locations are. For instance, if the new location is just down the street, the charge will probably be minimal. However, if freight was heading to California and is being reconsigned to Florida, you will be in for a hefty reconsignment fee.
We get a lot of groans when we have to quote people for the cost of a reconsignment so we wanted to highlight the process so you can educate your customers as well:
1.We have to send written authorization to make the change to the carrier. A Bill of Lading is a legal contract, so any changes made must be in writing. Authorization must always be made by the shipper or paying party.
2.The carrier will enter the information into their online system and image your authorization.
3.A rating analyst reviews the request, verifies that we have authorization to make the change, and completes the request.
4.Read the rest of this article by one of our favorite contributors who provide some of the best supply chain content in the industry.