Who Needs Truck Dispatcher Service to finding freight in the trucking industry, motor carriers have several options such as load boards, freight brokers and dispatchers.
What is the Difference Freight Broker vs Truck Dispatcher?
These services dominate the industry offering their services to truck drivers. If you do not have time to search through the load boards yourself then you are probably thinking of using a freight brokerage to sometimes call a broker or a dispatcher. Both work as intermediaries between shippers and the trucking company,
Freight Broker?
Freight brokering is when a broker agent serves as a middle man between shipping companies and carriers. Many freight brokers pick up their profit by negotiating rates with shippers and negotiating a different rate with owner-operators. Brokers work hard to keep truckers in business because it keeps them in business as well. The main difference between the two rates is the freight broker’s commission. As a result, freight brokers are motivated to encourage shippers to pay high rates while offering carriers a rate that helps them make a profit. If you do not have good negotiation skills, knowledge of pay rates in certain lanes, and know your operating cost when dealing with a freight broker, it is easy to accept loads that can sink your business. It is important to be very selective when choosing a broker (some are more motivated by profit than others). If the freight broker also offers quick pay, they take another percentage from the carrier’s agreed-upon rate
Truck Dispatcher?
Dispatchers or a truck dispatch service represent the carrier when negotiating freight. They take a percentage off the carrier’s negotiated rate, so a dispatch service is motivated to find carriers higher paying freight. The higher the rate they can find for the carrier, the more money they make. Good dispatchers will keep portfolios with their carrier’s lane preferences, desired freight rates, and equipment specifications. Using this information, the dispatcher then contacts the shippers or freight broker on the carrier’s behalf to negotiate loads that meet the carrier’s requirements. Only after a load is agreed upon does the dispatcher charge the carrier a fee for the service. Also note, if the carrier uses factoring, many dispatchers will create and submit invoices to the factor on the carrier’s behalf. However, all dispatchers are not created equal, as some will charge additional fees or make you book a monthly minimum. As always, be sure to ask those questions before hiring a dispatcher
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