Reconsignment Fee

A reconsignment fee is a charge applied by a carrier when a shipper or broker changes the delivery destination of a shipment after the freight has already been picked up and is in transit. Reconsignment requires the carrier to modify the route, update dispatch instructions, and potentially renegotiate the rate for the new delivery location, all of which consume administrative time and may add miles to the trip.

Reconsignment fees typically range from $100 to $300 for the administrative processing, plus any additional mileage charges if the new destination is farther than the original one. If the reconsignment results in a shorter route, most carriers will not reduce the rate because the truck has already been dispatched and the driver has committed hours of service to the original plan.

Cold Chain Impact

For refrigerated shipments, reconsignment raises additional concerns beyond cost. Changing the destination mid-transit can extend the total time that temperature-sensitive product spends on the truck, potentially pushing against the product's shelf life or the shipper's maximum transit time specifications. If the new destination is significantly farther than the original, the extra transit time may require verification that the reefer unit has sufficient fuel and that the product will still arrive in acceptable condition.

Common reasons for reconsignment in the food industry include customer order changes, inventory rebalancing between distribution centers, quality holds that redirect product to an inspection facility, and rejected loads that need to be diverted to an alternate customer. Shippers can minimize reconsignment costs by finalizing order details before pickup, communicating clearly with receivers about readiness, and maintaining backup delivery options for loads that are at risk of rejection.