Difference between dispatcher and broker

Are you tired of understanding complicated terms? Our team is always ready to help you. That’s why today we are going to talk about the difference between a truck dispatcher and a freight broker. Many people hire them and they think these terms are synonyms. But this is a mistake. There is a huge difference between freight brokers and truck dispatchers. First, let’s consider their main tasks. 

A freight broker is responsible for negotiating about rates with shippers and owner-operators. They act as an intermediary. Their payment depends on the commission that they get from both parties. Therefore their goal is to obtain the best rate. Freight brokers want their clients to get more money because it’s their profit too. But it’s important for them to find the balance between rates for carriers and shippers. That’s why sometimes the payment can be lower for drivers than they would like. For this reason, working with freight brokers may not be comfortable enough for carriers.

What can we say about truck dispatchers? They usually negotiate about freight. As freight brokers they are motivated to find high paying freight for carriers. They do it because their profit depends on the percentage of the carrier`s negotiated rate. Those dispatchers who know their job, who are real professionals, make a whole list with the preferences of their drivers. The list usually includes the desired freight rates, types of loads and the possibilities of their vehicle. When a truck dispatcher can`t make money, you can`t too. Therefore they are interested in your profit and they always know how to negotiate the best paying freight.

One of the biggest differences between a broker and a dispatcher is the fact that truck dispatchers aren’t able to deal directly with shippers. Yes, dispatchers always represent drivers when negotiating freight. But they do it on behalf of the trucking company or the owner operator, and they never deal with shippers on their own behalf. But there aren’t any problems in case you have broker authority. Freight brokers can work with both shipping companies and carriers. They negotiate, manage and match them. But they don’t represent either one. 

These are the small nuances that create a greate difference between brokers and dispatchers. We hope that after this article you will never confuse these terms again. Of course, only you can choose who is more reliable for your business. But try to develop good relationships with shippers. It’s the best way for you. Yes, you should understand that this scenario is not possible before you grow your company. So for some time you still have to work with load boards, freight brokers, or truck dispatchers in some capacity. There are many professionals in the trucking industry who are really focused on a good result. But in order to protect yourself from fraud we recommend you arm with rate knowledge, work on your negotiation skills, know your costs, and be selective. Your knowledge and professionalism is the key to the success of your business. Thanks for reading and have a nice day!