Tag Archives: dispatcher

Dispatchers Info On What To Charge!

What is an average percentage you should charge the trucking companies you dispatch  for?

The answer to that question will vary.  I would suggest that you set a price that you can live with for the services that you are going to provide.

For a dispatcher, these are going to be your regular duties:

  • Call brokers, finding freight (using load board contacts)
  • Calls to the driver to tell him what loads are available
  • Book the loads the drivers wants, passing along the paperwork or instructions to the driver for the pick up.  Once the driver picks up the load, (you may decide this is the end of the obligation to the truck company and you are free to bill for the load that is picked up.)
  • From that point the regular upkeep of your own paperwork (i.e. filing, billing).

If this is what you do for your clients and they agree that this is all they want, I would say a fair percentage is between 6 and 8 percent per load.

If your client wants you to be more involved, like helping with invoicing for loads that you book for him.  You should start at 10% per load.

Don’t try to make all your money off of one truck, but get a fair price for what you do.  So, in my opinion set your dispatch fee to charge (client) trucking companies that you dispatch for is between 6 and 10% per load.

Owner Operator and Company Drivers

Working with Owner Operators and Company Drivers for the beginning dispatcher.  If you know a truck driver who is working for a company (other than himself) he is referred to as a company driver.  If the company driver has his own truck, and trailer he may want to venture away from the company he is working for and begin working for himself.  If he is working for himself, he is referred to as an Owner Operator.  If he has his own authority and insurance he is able to run and book  freight loads independent of the company as long as he is not under contract with the company.

Question:
My husband has a truck and I want to dispatch him. How do I begin?

Answer:
This is a popular question. For the dispatcher, if you already have a truck to dispatch, you are half way to having a successful dispatch business.
Here are a couple of questions for you.

  • Is he a company driver
  • Is he under contract with the company he is working for

Most company drivers are under contract to the company that he is working for.  He will need to review his contract to see if he can carry freight loads independent of the company. Most companies will want the driver to be exclusive to them. They do not allow “trip” drivers. A trip driver is not under exclusive contract, and can get his own freight loads from other shippers.   If this is the case, the truck driver will need to go to his local DMV, and register his truck “company” as an independent Owner/Operator, and get what is called a MC (motor carrier) number. The next step is to get his own authority to transport freight either interstate, or intrastate. The next item that he will need is insurance for his truck company (business). The truck driver can get most of this information between the DMV and the Federal Motor Carrier Administration (http://www.fmcsa.dot.gov/registration-licensing/registration-licensing.htm ).

It is the responsibility of the Driver/Owner Operator (also known as the truck company) to take care of the these steps.  Your responsibilities as the dispatcher should start after he/she has taken care of the FMCSA, and he is legal to move freight as an independent owner operator.

  • The drivers starting point…. Read your company contract.
  • Talk to the DMV or apply online for your MC, etc. (FMCSA)
  • Contact your insurance Agent
  • Activate your authority
  • Start looking for your own freight or…hire a qualified dispatch service (they take care of all the paperwork that you will need to book freight loads as an independent owner operator.   A good dispatch service will help you grow your business in such away that you are both collecting good pay for the work that you both do.)
  • You may have to quit your JOB before you can actually start driving for yourself.

There you have it.  I hope this information was helpful for the owner operator, the company driver and the dispatcher.  Though, if you want to take on the extra duties of filing the paperwork for the driver, you can.  Know this, it would be easier for the driver to take care of this as he already had the experience of registering his truck with the DMV.)  If he already has an MC# (Motor Carrier) or a USDOT# (his authority to transport freight intrastate or interstate) he is more than halfway there.  Your duties as a dispatcher is to keep his truck loaded.