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  7. Diversion
Operations

Diversion

Definition

A change in the routing of a shipment while it is in transit, redirecting it over a different line or through a different gateway. Diversion differs from reconsignment in that the destination may remain the same while the route changes. Both are subject to railroad tariff rules and may require additional charges.

Related Terms

Reconsignment

A change in the consignee, destination, or routing of a shipment after the original bill of lading has been issued but before final delivery. Reconsignment allows shippers to redirect freight in transit to meet changing market conditions. A charge is typically assessed by the railroad for processing a reconsignment.

Waybill

An internal railroad document derived from the bill of lading that travels with or ahead of a car and contains all information needed to route, classify, and deliver the shipment. The waybill is the operational document used by railroad employees to handle a car through the system. It may be electronic in modern railroad IT systems.

Bill of Lading(BOL)

The primary shipping document that serves as a contract of carriage between the shipper and the railroad, a receipt for the goods tendered, and sometimes a document of title. The bill of lading describes the commodity, weight, origin, destination, routing, and any special terms. It is issued by the railroad or its agent when freight is accepted for transportation.

Transit Privilege

A tariff provision that allows a shipper to stop a shipment in transit for processing, storage, or further manufacture, and then continue the shipment to final destination at a through rate. Common transit privileges include milling-in-transit for grain and fabrication-in-transit for steel. Transit privileges encourage shippers to use rail for value-added processing steps.

More in Operations

ReconsignmentForeign CarDemurrageDetentionConstructive PlacementClassification Yard