A truck dispatcher works for the carrier and is paid by the carrier to find and book loads. A freight broker works between the shipper and the carrier, needs its own broker authority and a $75,000 bond, and earns the difference between what the shipper pays and what the carrier gets.
Side by side
| Dispatcher | Freight broker | |
|---|---|---|
| Works for | The carrier | Arranges freight between shipper and carrier |
| Paid by | The carrier, usually a % per load or flat fee | The margin between shipper rate and carrier rate |
| FMCSA broker authority | Not when acting only for the carrier | Required |
| Financial security | Not required | $75,000 bond or trust |
| Rate confirmation in the name of | The carrier | The broker, with the carrier |
Why the difference matters
A dispatcher's job is to get you the best rate. A broker's margin grows when your rate shrinks. Both play a role in trucking, but you should know which one you're talking to.
A dispatcher also never takes your load as their own. The load is booked under your authority, the rate confirmation is in your company's name, and the broker pays you or your factoring company directly.
Red flags when hiring a dispatcher
- They want rate confirmations in their name instead of yours
- They ask brokers to pay them first and then pay you
- They book loads without your approval
- They won't tell you the full rate on each load
- They lock you into a long contract with cancellation fees
At Rich Hauler, loads are booked under your own authority, you see every rate, and you approve every load. See our services and prices.