The trucking industry is growing, becoming a viable career option for many as trade is booming between Canada and the US.
In recent years, the popularity and demand for jobs like freight brokers and truck dispatchers have skyrocketed, and that’s because they are the cornerstones of the industry. Transport carriers depend on freight brokers, dispatchers, and load boards to find cargo to fill the trucks.
Due to the similarities in their responsibilities, people often confuse freight brokers with truck dispatchers. But they are distinctively different jobs.
The main difference is that freight brokers work with shippers and carriers while dispatchers only work with carriers. Another difference is that freight brokers are regulated while dispatchers are not.
At Maze Consultancy, we provide Truck Dispatcher Training Course and Freight Broker Training Course. We often face questions about the difference between freight brokers and Truck dispatchers, so we decided to address all the questions today.
In the following passages, we will discuss everything from the difference between the two jobs, the salary scale, and how the two jobs differ from one another. So without any further delay, let’s check them out!
A truck dispatcher is responsible for finding a trucking company’s loads. Motor carriers employ them, and their main objective is to make sure the carrier can easily find loads to transport.
They work for carriers and make sure that they have loads to carry while also making sure the carriers pick up loads correctly, drive safely, and get the loads delivered in time.
Small owner-operator carriers usually don’t have the time to go through load boards to find loads to carry, and that’s where independent truck dispatchers come in clutch.
They work with carriers big and small and help them find loads to carry. However, big carriers usually have their full-time dispatchers for this job, while small carriers might use the service of Independent Dispatchers.
Independent dispatchers work in commissions ranging from 5-10% of the pay rate for a load. The tender does not go to the dispatcher; they simply work as a middleman, helping both parties connect.
The freight broker’s responsibility is to bring the carriers and the shippers together. They are tasked with easing the communication between the two sectors. A freight broker is the one that ensures timely delivery of the cargo.
They act like a single point of contact for shippers and handle price negotiation, planning the route, tracking the freight, and optimizing routes.
Brokers usually look to negotiate lower rates as their commission is based on the difference between the freight rate paid to the carrier and that the shipper pays.
Truck Dispatchers and licensed Freight Brokers are two different jobs, and they are not the same. Freight brokers who are running their own business in the USA are licensed, making the job well-regulated.
That’s why dispatchers can get in trouble if they conduct business like a freight broker in the USA without relevant permits. Dispatchers can only be contracted on a motor carrier’s behalf.
It’s the carrier who invoices a freight broker, and the freight broker pays the carrier. Dispatchers strictly deal with the carrier and are in no way involved in other aspects.
We often hear questions like, “are freight brokers and dispatchers the same?” Well, the similarities between the two are that they both are value-add services to carriers. Brokers provide value by bringing in customers to motor carriers.
In contrast, dispatchers bring in all the brokers so that the carriers get the loads fast without looking at the load boards. Other than these traits, both are pretty different.
Yes, You can be both if you obtain the necessary permits from the government to operate as a Freight Broker.
Truck dispatchers earn relatively well in Ontario, with the average income being around 45,214 dollars per year or 23.19 per hour. However, entry-level dispatcher jobs start at about 37,750 dollars, with experienced workers making up to 66,550 dollars per year.
On the other hand, Freight brokers earn about 107,500 dollars per year or 55.13 dollars per hour on average, with the most experienced workers topping at around 107000 dollars as well.
So there you go, those are the differences between freight brokers and truck dispatchers. As you can see, both are distinctively different jobs with significant upsides as careers.
However, in terms of entry-level requirements becoming a dispatcher is more accessible as it doesn’t require a special license to work as one needs to operate as a freight broker.
So whether you are a carrier or a shipper or want to go into brokering or dispatching, Maze Consultancy’s various training and services can help you out.
Our experts provide high-end training and guidance to anyone looking to establish themselves and make a career as Truck Dispatcher or Freight Broker. So contact us, and we will help you out.
Also, if you have any questions about our services or freight brokers and dispatchers, drop them in the comments below or hit us up on our socials, and we will answer them all for you.
And with that being said, that’s about all we have for you today. We will come back with something new for you soon. Until then, see ya!