Discover the difference between freight dispatchers and brokers.
To the casual observer there are many similarities between freight brokers and freight dispatchers, but it’s important to note the major differences.
Both freight dispatchers and brokers work as intermediaries, but freight dispatchers make a percentage of what your trucking company makes, meaning they have your best financial interests in mind. However, you need to be able to afford the cost of a dispatcher.
Freight brokers often make money by negotiating rates with shippers and then negotiating different, lower rates with owner-operators to allow for a profit margin for the broker. Getting a good rate with a broker means being a skilled and knowledgeable negotiator.
What do freight dispatchers do?
Freight dispatchers act as intermediaries between the carrier and the shipper. They negotiate loads on behalf of the carrier and try to get consistently high paying freight given that they will receive a percentage of the final rate. Good freight dispatchers keep portfolios of their carrier’s lane preferences, equipment specifications, and desired freight rates. They then contact shippers and brokers on the carrier’s behalf to find loads that meet the carrier’s requirements.
Can a dispatcher really help my business?
As with any business partnership, it all depends on choosing the right people. Picking the right dispatcher can mean the difference between thriving and simply getting by. But once you do find a dispatcher that works well with your business, you’ll be able to turn over time-consuming logistics and back-end office tasks to them so you can focus on keeping your operation profitable. Truck dispatcher duties and services can be particularly useful for drivers looking for support as they shift to being independent owner operators.