Two terms continuously popping up in the domestic transportation industry are freight brokers and dispatchers. Both collaborative, brokers and dispatchers work with shippers and other parts of a supply chain to transport goods. While both roles act as intermediaries between the customer and transport carriers, there are distinct differences. Businesses and individuals planning to transport freight by truck should understand how each position contrasts. Failure to understand can disrupt the shipping process and may lead to monetary loss. This article will explain the jobs of brokers and dispatchers and how they differ when moving cargo.
What is a Dispatcher
When shippers require domestic freight movement by truck, they contact a trucking company or a freight broker. A common position that a trucking company usually has is a dispatcher. Dispatchers manage the transportation process on behalf of the carriers. Along with finding loads for the drivers, this includes directing, scheduling, and monitoring the movement of the freight. When finding shipments, they negotiate the best rates for their carriers. Dispatchers may also constantly update the shippers regarding their cargo’s location. Along with working in a company, dispatchers can also be independent, meaning they are in contract with multiple carrier companies.
What is a Freight Broker
A freight broker is the middleman between a shipper and a carrier in shipping. Not to be confused with freight forwarding, which is international freight transportation, freight brokering is domestic transportation. The primary responsibility is coordinating the movement of a shipper’s cargo by connecting them with dedicated carriers. They are in charge of managing a shipment’s logistics and ensuring that the delivery runs smoothly. While they are never in direct contact with the cargo, freight brokers are the main point of communication for the shipper regarding their goods. Another goal of a broker is to grow the company that they work for by building relationships with trucking companies.
What is the Difference between Freight Brokers and Dispatchers
While freight brokers and dispatchers may seem similar, there are unique distinctions between the two. The most significant difference is the client that they work for. While they both are middlemen, dispatchers work for carriers while freight brokers work for the shipper. A dispatcher’s primary focus is finding shipments with the best prices for their carriers, which they receive a percentage of. A broker’s primary focus is obtaining shippers and connecting them with carriers. While dispatchers represent the carriers during negotiations, freight brokers work with truckers and customers but represent neither. Another difference is that brokers are not directly involved in transportation, while dispatchers manage the whole process.
Freight brokers are usually not involved with the carrier, while dispatchers may be responsible for driver coordination and scheduling. Brokers also require a license, while dispatchers do not. Despite the two jobs differing in focus, they have similarities and are essential in the logistics industry. If you plan on transporting cargo domestically, contact A1 Freight Solutions at 786-375-9420 to get started. We have dedicated freight brokers that focus on making your transport process as smooth as possible. Along with FTL and LTL shipping, we have drayage, expedited, heavy haul, and more value-adding solutions.