Broker or Dispatch Agent?

The answer depends on what best fits your business model and what your customer’s needs are.

Freight brokers are required to have a Surety Bond (BMC-84) to ensure that you as a carrier get paid as long as you perform the work that was originally requested and provide the requested supporting documentation.

Dispatch agents focus on the day-to-day coordination of shipments, typically work for a small percentage of the load that they dispatch you on, do not have the legal authority to negotiate or contract with shippers or carriers, and are not required to have a Surety Bond to ensure that you get paid.

A carrier can benefit from working with a freight broker in several ways, including:

1. Access to a wider range of loads: Freight brokers have a large network of clients, allowing carriers to access a wider range of loads and increase their utilization.
2. Increased workload: By working with brokers, carriers can secure more consistent loads, reducing downtime and increasing their overall workload.
3. Improved load matching: Brokers can match carriers with loads that are well-suited to their equipment and routes, resulting in more efficient and profitable shipments.
4. Streamlined payment processes: Brokers often handle payment and invoicing, simplifying the process for carriers and reducing the risk of payment disputes.
5. Reduced administrative burden: By outsourcing the load-finding process to a broker, carriers can save time and reduce administrative workload.
6. Access to new business opportunities: Brokers often have connections with new and growing businesses, providing carriers with opportunities to expand their customer base.