Last Updated December 27, 2024

An important part of owning your own trucking business is learning how to work with various professionals in the trucking industry, including brokers and dispatchers. Freight brokers and freight dispatchers play a crucial role in logistics, helping goods get from point A to point B.

Both roles are important in your work as a trucker, but they have different purposes. Understanding the difference between a freight broker and a dispatcher will help you save time and make sure you’re contacting the appropriate people for the job.

Check out this guide to learn about the responsibilities of brokers and dispatchers, as well as important things to keep in mind when working with them as a carrier.

What Is a Freight Broker?

Whether you’re an owner-operator or a contract driver working for a carrier, you’ll likely rely on a freight broker at some point. Freight brokers work as middlemen who connect shippers with carriers. Brokers don’t own trucks or handle cargo; they only focus on coordinating logistics. A good freight broker helps negotiate rates, matches shippers with appropriate carriers and routes, and ensures shipments are delivered on time.

It’s common for freight brokers to work with multiple carriers and shippers in various industries and regions. They also handle administrative tasks like contracts, compliance, and payment processing. Think of a freight broker as a helpful contact for finding and sourcing high-paying loads for your trucking business. While you do pay a fee for their services, many owner-operators say the consistent work is worth the expense.

Responsibilities of a Freight Broker

• Connecting shippers with carriers
• Negotiating competitive freight rates for both shippers and carriers
• Overseeing the entire transportation process and tracking shipments
• Verifying carriers meet all federal regulations
• Addressing issues in transit like delays, accidents, or route changes
• Managing billing

What Is a Freight Dispatcher?

A freight dispatcher works directly with you to ensure you have the most optimized loads and routes for each truck. A dispatcher focuses on helping drivers maximize their time and earnings. Dispatchers are a hands-on addition to the team that acts as a single point of contact for drivers, helping you stay efficient and profitable.

While freight dispatchers won’t help you find customers like a broker will, they can help you handle the complex intricacies of managing a trucking business. They’re invaluable for businesses with more than one truck, so it’s no wonder why carrier companies rely heavily on freight dispatchers to run a tight ship.

Responsibilities of a Freight Dispatcher

• Matching drivers with available loads
• Optimizing routes to minimize costs and timelines
• Managing driver schedules
• Communicating with drivers
• Handling bills of lading and delivery receipts

A Carrier’s Relationship With a Broker vs. a Dispatcher

Both brokers and dispatchers can make a carrier’s trucking business more efficient and profitable, but they have different responsibilities. While brokers can help carriers find loads, dispatchers manage carriers’ existing workloads. Let’s break down the differences between brokers and dispatchers.

How Carriers Work With Brokers

A freight broker is your best bet if you need more business opportunities. They specialize in helping you find loads for your trucks. Not only that, but most brokers can also go to bat for you and negotiate rates on your behalf. If you aren’t sure what to charge for your services, working with a broker could give you a better understanding of current fair market rates.

Freight brokers always need carriers for their customers, so you’ll often receive multiple requests. Instead of taking only what’s available, working with a freight broker allows you to pick the loads that best fit your capacity and routes.

Brokers are similar to dispatchers in that they can handle some administrative tasks, although the tasks they manage differ. Brokers handle contracts and payments, while dispatchers specialize in bills of lading and delivery receipts.

How Carriers Work With Dispatchers

Once you receive loads from either a shipper or a broker, the dispatcher assigns specific loads to trucks. They often used specialized software to determine the best truck based on location, availability, and capacity. From there, the dispatcher creates optimized routes that cut fuel costs.

One of the biggest differences between brokers and dispatchers is exclusivity. Brokers work with dozens of parties simultaneously, but dispatchers usually work with just a single carrier. They understand the nuances of your company and drivers, offering a personalized level of service that’s hard to beat.

Considerations When Working With Freight Brokers

Are you considering working with a freight broker? The right broker can unlock valuable opportunities for your business. However, as a new owner-operator or contract driver, you need to understand the ins and outs of working with freight brokers. Consider these factors before working with a broker.

Understand the Payment Process

Watch your cash flow when working with brokers. It’s typical for them to release payment upon delivery only after you’ve submitted all required documentation, like the bill of lading. Read the fine print in your contract carefully because some payment terms can range from 30 to 60 days.

Look Out for Double Brokering

It’s unfortunate, but scams happen in the logistics industry. If this is your first time working with a broker, look out for common scams like double brokering. This happens when a broker reassigns a load to another broker without telling you. Not only does this create a lot of confusion, but it can also jeopardize your ability to get paid for delivering a shipment.

Negotiate Rates

Freight brokers like to say their rates are pre-negotiated and set in stone, but you can often negotiate these rates. Consider fuel costs, equipment needs, and the complexity of the load when discussing pricing with brokers. You’ll also be able to negotiate better rates once you have an established relationship with a broker, so don’t overlook the value of working with the same broker on multiple jobs.

Shop Around for Brokers

Don’t go with the first broker you find. Always compare rates, routes, and more. You should also verify that the broker is reputable by checking trucking boards, review sites, and the broker’s credit score.

Considerations When Working With Freight Dispatchers

A freight dispatcher operates as your right-hand man in the logistics process. Since this is an ongoing relationship, it’s important to think carefully before bringing a dispatcher onto your team.

Make Sure You Can Afford Them

First, do you have the cash flow to hire a full-time dispatcher? Dispatchers typically charge a percentage of each load, ranging from 5% to 10% of your earnings. As a new owner-operator, it might be difficult to front this cost. Do the math to see whether your current earnings can comfortably cover this expense. If money is tight right now but you need help with dispatching, consider freight factoring to get the back-office support you need.

Shop Around

Adding a dispatcher service to your company is a big decision. Always shop around to ensure you find the best fit for your business.

Some dispatchers provide comprehensive support, including load booking, route planning, and paperwork management, while others offer more limited services. Dispatchers differ, so look for dispatchers specializing in your preferred routes, freight type, and operations.

A knowledgeable dispatcher with strong industry connections can secure higher-paying loads and keep your trucks moving consistently, but they may charge more. Still, you can’t put a price on valuable skills like communication, so go with a freight broker who meshes well with your drivers and team.

In-Summary: Differences Between a Freight Broker and a Dispatcher

Freight Broker vs. Dispatcher FAQs

What is the average salary of a freight broker?

The average freight broker earns over $67,000 per year in the United States. On the low end, they earn $27,700, but on the high end, they earn over $165,000. Like most jobs, earnings depend on experience and region.

What is the average salary of a freight dispatcher?

Freight dispatchers earn an average of $89,000 annually in the United States. On the low end, they earn $29,000; on the high end, they can earn more than $300,000. Their earning potential depends on their workload and how many carriers they serve, as well as their experience and area. Independent dispatchers who handle multiple carriers may earn more because they can charge a percentage of the load revenue.

Is a freight broker the same as a dispatcher?

No, they are not the same. Brokers connect shippers and carriers, handling the negotiation and coordination of loads, while dispatchers work directly with carriers to assign loads, plan routes, and manage daily operations.

Can you be a freight broker and a dispatcher at the same time?

Technically, yes, but it would be very difficult to pull off. Serving as both a freight broker and dispatcher could create conflicts of interest. It’s good to have separate brokers and dispatchers to protect your relationships with shippers and simplify compliance.

Michael McCareins

Michael McCareins is the Content Marketing Associate at altLINE, where he is dedicated to creating and managing optimal content for readers. Following a brief career in media relations, Michael has discovered a passion for content marketing through developing unique, informative content to help audiences better understand ideas and topics such as invoice factoring and A/R financing.