Reconsignment is a formal, contractual change to a shipment already moving through the supply chain. It represents a mid-transit adjustment that allows the owner of the goods to redirect them after they have been picked up by the carrier. This procedure is common in freight movement, addressing dynamic business needs or unforeseen logistical issues that arise after the initial transport agreement is set.
What Reconsignment Means in Logistics
Reconsignment is the formal process of amending the original contract of carriage, specifically the Bill of Lading (BOL), after a shipment has been tendered to the carrier and is actively in transit. This action legally changes the party designated to receive the goods, known as the consignee, or alters the final physical destination where the goods are to be delivered.
A reconsignment request signifies a change to the consignee or the delivery point specified in the original shipping documents. This is distinct from a simple address correction because it involves a formal modification of the BOL, which is the legally binding document governing the freight movement. The carrier assumes responsibility based on the BOL, requiring a new agreement from all involved parties to legally execute the delivery. The goods must be actively in the carrier’s possession, but not yet delivered, for a true reconsignment to occur.
The Step-by-Step Process of Changing the Consignee or Destination
The execution of a reconsignment begins when the goods’ legal owner, typically the original shipper, submits a formal, written request to the carrier. This instruction must be explicit, detailing the new consignee, the revised delivery address, and the specific reason for the change in delivery terms. The carrier requires this precise documentation to legally justify altering the original agreement and subsequent delivery instructions.
Upon receipt, the carrier’s operations team must first verify the feasibility of the request based on the shipment’s current location and mode of transport. They assess if the truck is too close to the original destination to practically reroute or if the new destination violates existing route restrictions. The carrier then assesses the impact on their schedule and the time required to physically divert the freight unit, recalculating the new estimated delivery window. Internal communication notifies the driver or terminal staff handling the freight of the updated destination and required change in routing.
Final approval is contingent upon the shipper accepting the revised charges and the carrier confirming that the physical change can be safely and legally executed. The carrier then updates its internal tracking system and issues an amendment to the original Bill of Lading, formalizing the new contract of carriage.
Why Shipments Require Reconsignment
Several dynamic factors in the supply chain frequently necessitate the formal reconsignment of goods already in motion.
Common Reasons for Reconsignment
- Consignee refusal: The original recipient may refuse the shipment upon arrival due to a perceived discrepancy or damage. The owner may then direct the goods to an alternative receiving facility instead of returning them to the shipper.
- Inventory management: A warehouse may suddenly lack the capacity to accept incoming freight. To avoid costly storage fees or delays, the shipper redirects the load to a less congested facility.
- Mid-transit sales or ownership transfer: The legal owner of the cargo may change hands while the goods are moving, requiring the new owner to direct the carrier to their preferred facility.
- Address correction: Reconsignment is sometimes required to correct a significant delivery address error discovered only after the carrier had departed the origin facility.
Understanding the Costs and Consequences
Executing a reconsignment request introduces financial penalties and logistical complications that extend beyond the standard freight rate. Carriers typically impose a specific reconsignment fee, which includes a flat administrative charge for amending the Bill of Lading and processing the new instructions. This fee compensates the carrier for the operational and clerical work required to change the contract.
Beyond this flat fee, the shipper is responsible for all new line haul charges; the additional mileage required to reach the revised destination is billed at the carrier’s standard rate. Furthermore, the diversion often causes significant delays, leading to potential detention or accessorial charges if the carrier’s equipment is held up during rerouting. These charges can rapidly accumulate, substantially increasing the total landed cost of the product.
The extended transit time and change in routing create an increased exposure to the risk of damage or loss. While the carrier’s liability coverage remains based on the original contract terms, the delay disrupts the planned supply chain schedule. Shippers must weigh the cost of these accumulating fees and delivery delays against the benefit of redirecting the goods.
How Reconsignment Differs from Other Shipping Changes
Reconsignment is distinct from other shipping changes due to its focus on changing the contractual receiver or ultimate delivery location as defined on the Bill of Lading. This action fundamentally alters the contract of carriage by specifying a new end point for the carrier’s responsibility.
Related Shipping Adjustments
Diversion or re-routing alters the physical path a shipment takes but maintains the original, contracted final destination and consignee listed on the BOL.
A storage or hold request involves temporarily halting the movement of freight at an intermediate point. This is a temporary pause and does not change the ultimate delivery address or the receiving party.
Simple address corrections are minor fixes, such as correcting a zip code or a typographical error in a street number. These do not constitute a legal change to the contract of carriage or the designated receiving party. Reconsignment is a formal contractual shift requiring amendment of the core legal document, while these other terms represent operational or minor administrative adjustments.