Truck Dispatch vs Freight Broker. A freight broker is a licensed intermediary that connects shippers with transport companies, whereas a truck dispatcher works exclusively for carriers or truck drivers, managing their routes and finding loads.
What is a freight broker?
A freight broker is a person who brings shippers and carriers together to move loads throughout the supply chain. A freight broker’s job is to find the right carrier for a shipper and find the right loads for carriers to haul, serving as the match-maker between the two. However, freight brokers do not simply make connections. They also smooth the communications and facilitate all of the necessary logistics between all parties involved in the movement of a load.
What is a dispatcher?
A dispatcher manages load transit status communications with drivers. Dispatchers often work for carriers, either as employees or contractors. They coordinate shipping movements in advance and during hauls, working directly with drivers to resolve and communicate events and issues on the road.
Key Differences Between a Freight Broker vs. Dispatcher
There are a number of overlaps between freight brokers and dispatchers. Both roles require exceptional communication and problem solving skills, and both roles involve managing the movement of freight. However, there are some important differences between the two.
Representation – Dispatchers commonly represent the carriers. Freight brokers commonly work for both the carriers and shippers, ultimately representing the brokerage company as a whole.
Goal – The goal of a dispatcher is to help carriers navigate the movement of freight. This involves a great deal of administrative and communication tasks. The goal of a freight broker is to efficiently connect shippers and carriers to successfully move freight. This involves a great deal of research, relationship development, negotiation, and communication tasks.
Licensing – Dispatchers are not licensed. In contrast, freight brokers are licensed by the Federal Motor Safety Administration (FMSA).
Payment – Freight brokers typically involve the shipper and then pay the carrier from invoice, keeping the difference between rates. On the other hand, dispatchers are typically paid by the carrier, and their contracts do not include the shipper.
Responsibility – Dispatchers are primarily responsible for maintaining direct and thorough communications with drivers on the road. Freight brokers hold responsibilities to the freight company, the shippers, and the carriers.
Truck Dispatch vs Freight Broker
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