December | 2012 | leadsonloads/Truck Operations And Dispatch Services

Direct Shippers, The Broker Agent and the dispatcher

Comment/Question

I have read the Freight Brokerage Business book, Import/Export guides, have the computer and fax setup, I do not have the transportation/freight jargon down pat, am new to dispatch/agent work, I am wondering how long it will take for me to get started, what is a good way to break into the industry and will anyone hire/train those without prior experience???

Answer for the beginning dispatcher looking to work for a brokerage firm as an agent/dispatch and learning the trucking industry language
If you are trying to get hired on as an agent with a brokerage, there are some brokerages that may consider you for employment as an independent contractor. You can find some of their ads on load boards like getloaded. You could call some of the brokerages who are offering freight for transport. While you are calling about a particular load, just slip the question in if they are hiring.

I am not a freight broker, though this is what I found when I’ve approached a brokerage about becoming one of their agents. They are looking for what you can bring to the table. What that means is, can you bring them freight contracts from direct shippers.

Getting direct shipper contracts can be time consuming but if you get one for yourself, or your truck company, you could be set for life, because you get the opportunity to bid and move the freight at a higher rate than most brokered freight is offered for. If you secure a direct shipper contract for a brokerage your percentage may be 60/40. Good pay, but the direct shipper contract belongs to the brokerage you work for (not you). Some brokers may be willing to give you a list of direct shippers to call to establish the contact. If you get accepted as a agent you can ask if they have a list of contacts.

What you are looking for as far as direct shippers are concerned are: manufacturers of everything from paper to electronics. Anything you see around your home has a manufacturer or distributor. Contact them to see if you can get a foot in the door. If you start your own truck company with your own MC and broker Authority, you are better equipped to approach manufacturers and major companies (examples: Scott’s products for the spring and summer months would be a good one to approach.) for direct freight. If you have trucks that you can dedicate to move any freight you acquire it is called an asset based company. If you do not own any trucks, it is known as a non-asset based company. When you approach a manufacture or distributor, many are looking for 5-10 trucks that you can dispatch to move their freight. Anything less, and I’m not sure if they will even talk to you.

You’ll also need to learn to bid lanes for freight, You will need to offer the direct shipper a reasonable bid for their freight. To help you learn about bidding lanes I suggest that you try dispatching for a few months to get a feel for a particular lane. Most brokers receive 10% to 15% off the top of any bid (and some get more). This should help you figure out about how much to bid for a lane. Lanes are a geographic region you want to move freight in. Example: The East Coast corridor. That could be from Florida to New York. Getloaded and Internet truck stop load boards has some programs that can help you with what freight rates should go for in different regions. You can also learn by just booking freight for owner operators or your own truck company. This avenue will go a long way to getting you use to the transportation industry language.

If you have a truck to dispatch, you can start right now. You do not need to have an MC, or a brokers license.

You’ll need is a truck company that will hire your services as its’ dispatcher.
A business license
A contract (your company contract)
A phone/fax
printer
Email
Loadboard
A way to get paid for your services

About the Language? Mostly, the language is something you will learn the more you have contact with booking loads.

The first dispatching form you need before taking on clients is “your service contract”. Take a little time to list on a piece of paper what you are willing to do in your dispatch business, how much money you will charge (% or flat rate), how you will get paid (paypal, credit cards, paper check), how long you will wait to get paid.

Next. Determine the things you will require new your client to do for your company while you are contracted, example: the assignment of a a certain number of trucks to be dispatched exclusively by your company. (I suggest at least one). This may seem like a little thing, but I have learned from experience, if you do not spell things out in plain English in your contract, you’ll have grief and probably mess-up your cash-flow.

The last thing that you must have on your contract is “signatures”. Without the signature you don’t have a contract, and you are working for free. Get a signature on your contract. You should sign, and your client should sign. It is also a good idea to have a service start date on the contract. The contract is for your protection as a business owner. No, you may not need to go to court about a breach of contract, but if you do need to, have a valid contract, get the signatures. Do not start working for ANY client without it. I don’t care if it’s your brother. No contract, no work.

Below is a list of the technical stuff you’ll need included in your contract:

Your company name and address
Your Clients name, MC#, contact info
The duration of the contract
Is it going to be an exclusive service?
Your responsibilities as a service provider. (You’ll need a detailed accounting of what your service will give for what you are going to ask your client to pay for.
Your fees
Your payment method and schedule
Your clients responsibilities
A signature line for both parties
The date the contract will be in effect
Is there going to be a trial period and how long
The expiration date of the contract

You may be able to get a pre-made contract form from stores like Office Depot, or a stationary shop. The important thing to remember is that you spell out everything you want in the dispatch service contract. If it’s not there write it in. It doesn’t need to have all that legal gorgon if you are writing your own contract. Make sure the conditions of the contract CLEAR and indicates that both parties agree to the conditions. Remember the court shows where the plaintiff goes in and all he has is a signed piece of paper. Well, get the signature, and deliver what you say you will.

We'll take the worry out of booking the load, paperwork,phone calls, and faxes so the owner operator can concentrate on staying loaded, moving, and making money.

leadsonloads/Truck Operations And Dispatch Services

Monthly Archives: December 2012

Getting hired with a brokerage as a dispatch/agent

1st Form In Dispatching “The Contract”

We'll take the worry out of booking the load, paperwork,phone calls, and faxes so the owner operator can concentrate on staying loaded, moving, and making money.

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We'll take the worry out of booking the load, paperwork,phone calls, and faxes so the owner operator can concentrate on staying loaded, moving, and making money.