Dispatcher vs broker: who's on your side of the deal
Plenty of carriers use the words dispatcher and broker as if they meant the same thing. They don't, and the difference decides who represents you, who sets the rate with the shipper, who holds the freight money and what federal rules apply.
A freight broker arranges transportation for shippers and is paid out of the freight charges. A dispatcher works for the carrier, finds and negotiates loads on the carrier's behalf, and is paid by the carrier. We're a dispatcher. Here's how to tell the two apart, and why it matters to your truck.
- We work for the carrier
- You sign every rate con
- 5% of gross
- No setup fee
Shipper, broker, carrier, dispatcher: the strings between them
Picture four cards pinned to the board. Here's who connects to whom, who pays whom and who speaks for whom on a typical brokered load.
Shipper
Has freight to move. Pays the broker for the load. Often never talks to the carrier at all.
Broker
Arranges the move for the shipper. Contracts with the carrier on a rate confirmation. Pays the carrier and keeps the difference. Needs FMCSA broker authority and financial security.
Carrier
You. Hauls the freight under its own operating authority. Signs the rate con with the broker and gets paid by the broker, or the factoring company.
Dispatcher
Works for the carrier. Finds loads, checks brokers, negotiates, handles check calls. Paid by the carrier, usually a percentage of the carrier's gross. Never takes the freight payment.
| Freight broker | Dispatcher | |
|---|---|---|
| Works for | The shipper (arranges transportation) | The carrier |
| Federal authority | FMCSA broker authority, 49 CFR Part 371 | Acts as the carrier's agent |
| Financial security | $75,000 bond or trust, 49 CFR 387.307 | Not applicable to a bona fide carrier agent |
| Contracts with the carrier | Yes, on the rate confirmation | No, the carrier signs with the broker |
| Handles freight money | Collects from shipper, pays carrier | No |
| Paid by | Margin on the freight | The carrier, under a dispatch agreement |
FMCSA published guidance in 2023 on the definitions of broker and bona fide agent, including when a dispatch service is acting for the carrier and when its activity looks like brokering. The key questions are who it represents, who pays it and whether it arranges freight for shippers. Read FMCSA's own pages for the current rules.
When a "dispatcher" is really acting like a broker
Some outfits call themselves dispatchers but behave like unlicensed brokers. That's a problem for you, because a lot of freight fraud and double brokering runs through exactly that gap. Watch for these signs.
- They set the rate with the shipper. A dispatcher negotiates with brokers on your behalf. If someone is quoting shippers and deciding your rate on the other side, they're acting like a broker.
- They take the freight payment. Your freight money should go from the broker to you or your factoring company. If a dispatcher wants it paid to them first, walk away.
- They sign the rate con for you. The rate confirmation is your contract. You should receive it from the broker and sign it yourself.
- You can't see who the broker is. You should always know which broker you're hauling for, and be able to check their authority yourself.
- They want money up front. Setup fees, deposits or "activation" charges before a single load hauled.
The official checks are simple: look up any broker's operating authority and registration on FMCSA's public records, check that their contact details match, and read the rate con before you sign. Our guides on load board fraud and fake load scams and the rate confirmation go through the warning signs in detail.
How our desk keeps the line clear
We built our process so there's never any doubt about who we work for.
- We negotiate with brokers for you. We don't quote shippers or take a margin on any load.
- Every load comes to you with the broker's name, the rate and the terms. You say yes or no.
- The broker sends the rate confirmation straight to you, and you sign it.
- Brokers pay you or your factoring company. Your freight money never passes through us.
- We're paid by you, a percentage of the gross on loads you haul: 5% standard, 7% for new authorities, box trucks and hotshots, 4% for fleets.
That's the whole relationship. If anyone claiming to be us ever asks for your freight payment, your FMCSA login or money up front, it isn't us. The fee breakdown shows exactly what we charge and how.
Why the difference matters to your truck
When a broker negotiates your rate, they're negotiating against you. Every dollar they save on your rate is a dollar of their margin. That's not a criticism, it's how brokering works. A good broker relationship is still valuable, and we book with many good brokers every day.
When a dispatcher negotiates your rate, they're supposed to be negotiating for you. If the dispatcher's pay is a percentage of your gross, a higher rate pays them more too, so the incentives line up. That's the case for having someone on your side of the phone call, and it only holds if the dispatcher really is working for you, not for the freight.
Every load comes to you, from the broker, to sign
On our desk, the line between dispatcher and broker shows up on every load. We find it and negotiate it for you. Then it comes to you with the broker's name, the rate and the terms. You say yes or no, and the broker sends the rate confirmation directly to you. We never sign it, and we never touch the money.
Try the flow on the card. It's an EXAMPLE, but it's the order we follow on every load, and it's the clearest way to see that we work for you, not for the freight.
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What a dispatch agreement should say
Because a dispatcher works for you, the relationship should be written down in a dispatch agreement between your company and the dispatcher. It's a short document, and it protects both sides. Before you sign one with anyone, check that it covers these points clearly.
- The fee. The percentage or flat amount, and exactly what it's calculated on, like gross load revenue.
- How billing works. When the fee is due and how it's paid, separate from your freight payments.
- Your authority over loads. That you approve every load and sign every rate confirmation yourself.
- What's included. Searching, negotiating, check calls, paperwork, detention claims, reports.
- How to end it. Notice period and any fees for leaving. Ours is 30 days notice and no penalty.
- No authority over your money. The dispatcher doesn't collect freight payments or hold your logins.
If an agreement is vague on any of these, ask for it in writing before you start. A dispatcher who works for you won't mind putting it on paper, and ours goes out after the first call, before your first load.
Freight broker vs dispatcher questions
What is the difference between a dispatcher and a freight broker?
Does a truck dispatcher need broker authority?
Who pays the dispatcher?
Can a dispatcher also be my broker?
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