How To Create a Rule 11 Shipment

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Rule 11 is the rail industry regulation governing interline shipments with one tender and multiple service provider invoices. In a Rule 11 shipment, the customer tenders the shipment to an originating rail carrier on a through bill of lading, and each of the carriers submit invoices for their work. Depending on the terms of the contract, the shipper receives the invoices or one of the invoices is sent to the consignee.

Without Rule 11, interline rail shipments usually result in a single customer invoice, issued by the originating carrier for prepayments and by the terminating carrier for collect payments. Then the carriers invoice one another.

In OTM, Rule 11 shipments consist of two legs and two rail carriers. Separate shipments are created for each leg, which are cross-referenced by a Rule 11 route code. The shipment built from the first leg is the operational shipment and is tendered when shipment actuals are entered. The shipment built from the second leg is for settlement only and is not tendered.


  1. In the Location Manager, enter or select the origin, destination, and junction location for the Rule 11 shipment. The rail junction location is needed so that rates can be made that break at the junction.

  2. In the Rate Manager, enter a rate for each leg of the shipment. Each leg must have its own rate. The rate record must have a route code that covers only that leg. Rate Service IDs and Rate Service Types should be entered for each lane defined in the rate record.

  3. In the Itinerary Manager, create an itinerary that uses the two legs. You can make the itinerary as generic as possible to accommodate multiple rates.

  4. In Rates and Codes, make sure that each leg of the Rule 11 shipment, and the shipment as a whole, have rail route codes.

    First, enter one route code from the origin to the junction and another from the junction to the destination. Then select a Rule 11 route code that references to the route codes of the two legs of the shipment.

  5. In the Material Manager, specify the items or commodities for the shipment. Most rail rates are based on commodities.

  6. If needed, in the Equipment Manager specify the equipment type and equipment group for the shipment. Most rail rates are based on equipment type.

  7. In the Order Manager, create an order base and/or order release for the shipment.

  8. In the Order Releases Results Pages, select the Create Buy Shipment Show Routing Options action. The result should be two shipments, with the Rule 11 Route Code ID on each.

  9. For Rule 11 shipments built in OTM, the entire set of shipments has the same BM reference value which is derived from the tendered shipment (first one). This is necessary for matching incoming invoices for settlement (only first shipment is tendered to the first rail carrier but all shipments go through settlement). If the same reference number is present on all shipments, then matching can be performed based on the reference number and the service provider ID which is the true business solution based on Railroad EDI standards.

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