Truck dispatcher vs freight broker
They both talk about loads all day, but they work for different people and get paid differently.
Key takeaways
- A broker arranges freight for shippers and needs FMCSA broker authority and a $75,000 bond.
- A dispatcher works for the carrier and is paid by the carrier.
- FMCSA’s 2023 guidance explains when a dispatch service crosses into brokering.
- A legit dispatcher never takes shipper or broker money.
What a freight broker does
A broker arranges transportation of freight for shippers, for compensation. Brokers need FMCSA broker authority and must keep a $75,000 surety bond or trust fund on file. They usually earn the difference between what the shipper pays and what they pay the carrier.
What a dispatcher does
A dispatcher works for the carrier. They find and negotiate loads from brokers for your truck, and you pay them, usually a percentage or a flat fee. The broker still pays you (or your factoring company) directly.
FMCSA’s guidance on dispatch services
In 2023 FMCSA finalized guidance on when a dispatch service is really acting as a broker. The more control the carrier has, the more likely the dispatcher is its bona fide agent. Signs of a legitimate dispatch service include a written agreement with the carrier, being paid only by the carrier, not handling money between shippers and carriers, and not reassigning loads between carriers. Soliciting shippers directly or finding a carrier after securing freight points toward brokering.
Why it matters to you
A dispatcher should be on your side of the negotiation. If a “dispatcher” is paid by the broker, or asks for freight payments to go through them, that’s a red flag. Fleetorica works only for carriers, under a signed dispatch agreement, and is paid only by the carrier.
- Federal Register: Definitions of broker and bona fide agents (2023)
- 49 CFR Part 387: Broker financial security
This page is general information, not legal or tax advice. Rules change; confirm with FMCSA, the IRS or your state before you file.
Questions carriers ask
Does a truck dispatcher need broker authority?
Not if they act as the carrier's bona fide agent under FMCSA's guidance. A dispatch service that allocates freight among carriers or works for shippers may need broker authority.
Who pays a truck dispatcher?
The carrier. A dispatcher paid by brokers or shippers isn't working for you.