Broker Agent vs. Independent Dispatcher
What is the difference between a Broker Agent and an Independent Dispatcher? The following gives a brief description of the two, and highlights the advantages of choosing an independent dispatcher.
BROKER AGENTS work for established brokerages. They will contact direct manufacturers to get set up with them and begin receiving a list of their available freight. Once they begin obtaining freight, they will look for trucks to move the freight.
The idea is to find a qualified compliant carrier who will move the load for the least amount of money so that the broker agent can earn a commission. For example, Direct Manufacturer is paying $1000, and the broker agent wants a 15% commission. The broker agent will need to find a truck to move the load for $850 or less.
The commission is then split with the brokerage–50/50, 60/40, 70/30 with the broker agent getting an equal or higher percentage of the split. If the commission is $150 and the split is 50/50 then the broker agent would receive $75 for that particular load. The broker agent is working through the brokerage, but in essence they are working for the shipper
Work directly for the small trucking company to keep their trucks loaded and moving. They will work to stay ahead of the truck so that they don’t ever have to sit and wait on a load. Independent Dispatchers will work with both brokerages and direct manufacturers to try to get the MOST money for your truck.
Independent Dispatchers are paid on a percentage or flat fee basis for each load. Generally, the dispatcher’s percentage is 5 to 10 percent per load, with that rate being adjustable based on the amount of work the owner operator wants the dispatcher to do.
If they want the dispatcher to handle their billing as well, then the dispatcher would need to charge more. Some Independent Dispatchers charge a flat fee per load, such as $55. Their rate or fee is going to be what they can work out with the driver. For example, if the shipper is paying $1000, then owner operator would receive $1000.00 from the load. If the dispatcher were paid a flat fee of $55.00 per load, then the dispatcher would receive $55 from the load used in the example. Some Independent Dispatchers are also paid a weekly salary per truck.
The Independent Dispatcher is working for the owner operator.
At Dispatch 805, If you are a truck driver who wants to be a part of our network, contact our office today. Become a true entrepreneur and partner with a dispatcher who can more efficiently use your truck driving skills. Our ever-growing network of drivers means we are consistently able to offer the best possible service
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