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.
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.
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.
A publicly filed schedule of rates, rules, and regulations applicable to railroad transportation services. Tariffs are filed with and accessible through the STB and must be applied consistently to all shippers who qualify. Under the Staggers Act, railroads may supplement tariff rates with confidential contracts.
A rate applicable to a specific commodity or group of commodities between defined origin and destination points, typically lower than the general freight rate. Commodity rates reflect the volume, regularity, and competitive characteristics of the traffic. They are published in commodity tariffs or established in contracts.