Last Updated: April 18, 2023
Trucking dispatching services are services offered to owner-operators or small trucking companies. Reasons for wanting to sign up for a dispatching service vary case by case.
Whatever the case, DKW Express offers dispatch services for owner-operators. We mostly specialize in dry-van and flatbed freight but can also provide other dispatching services.
Owner-operators must decide whether to use dispatch services to locate loads or rely on their dispatching. There is no right answer, and many factors can influence the best option.
The most important factor to consider when making a decision is cost. Most dispatchers are paid a percentage of the earnings for each load they find. While some dispatchers may charge a flat fee (e.g., $50 per load), most higher-quality dispatch services will charge around 10% per load. This can quickly add up, especially if your business is small.
This article will examine the pros and cons of dispatching dispatchers or self-dispatching for owner-operators. In addition, this article will include the following:
A truck dispatcher is responsible for managing freight for owner-operators and carriers. A dispatcher's job is to locate loads, connect with brokers, conduct negotiations, dispatch drivers, and set up routes. Sometimes, dispatchers can assist with back-office tasks like reviewing logs and tracking hours. Some dispatchers go so far as to help you manage delays, maintain compliance with motor carriers, and improve your relationships with shippers. For each load they find, dispatchers receive a percentage of your earnings.
It is important to know that freight brokers and dispatchers can differ. A freight broker acts as an intermediary between the shipper or manufacturer (who wants their freight moved) & the carrier (who can transport it). Legally, the freight broker can represent the shipper and the carrier simultaneously. However, they shouldn't have any personal investments in either party. On the other hand, the dispatcher is directly associated with a carrier and acts on their behalf only. The law does not allow dispatchers to represent shippers or manufacturers.
A freight dispatcher's goal is to find relevant, high-quality leads for clients. Once an owner-operator dispatcher agreement has been signed, the dispatcher will learn more about your operation and determine which loads are most suitable for your business. Some dispatchers may use their connections to locate loads. In many cases, dispatchers will use their connections to locate freight. Professional dispatchers use load boards just as self-dispatchers to locate the right freight.
Freight dispatchers often use the same load boards an owner-operator has access to. Dispatchers use these boards in the same manner. They either post their clients' trucks to the system and let it find a match or perform a search. All they need to do to search is enter the truck's details, including its type, special features, lanes, origin, and destination.
Do Owner-Operators Need Truck Dispatch Services?
There are many pros and cons to truck dispatch services. The biggest con is the price. For a task that you could perform on your own, you're giving away a substantial portion of your earnings to someone else.
You can also spend more time on your road because you don't have to worry about finding loads. This means you could drive more loads and earn more if you need a quality system. The best truck dispatchers are skilled at negotiating and can talk to brokers with knowledge of specific markets and lanes. Freight dispatchers often negotiate better rates for loads than individual owners-operators because they know that a higher rate is in their best interest.
However, there is a common misconception that dispatchers can find loads you wouldn't be able to. This is often false. They have the same access to loads as you would if you searched the load boards on their behalf. In addition, they can search the load boards all day, while owners-operators must spend some time driving.
Good freight dispatchers can save you time and lower rates. They also offer other services that can be helpful to owner-operators, especially when they are just starting. They can also help with the following:
Dispatch service is a good option if you are willing to lose some of your earnings for each load you send. On the other hand, self-dispatching may be a better option if you prefer to keep all your earnings.
Owner-operators can find loads by following the same process as dispatchers, but you are finding loads yourself. A load board is essential to make it easy for you to place your truck and search loads. In addition, you should have loads updated daily on your load board, so you always have something to choose from. DAT is the only load board that fulfills all of these requirements.
DAT is a high-quality load board that allows you to self-dispatch. This means you can access the largest freight marketplace anywhere and ensure you never miss the perfect cargo. Although freight dispatchers might try to convince people that all they need to find loads is to spend hours on a load board, DAT allows you to set up alerts to be notified whenever a load that matches your search criteria appears. This allows you to spend more time behind the wheel and not worry about missing loads.
A load board of high quality will provide you with the information you need to negotiate broker agreements. DAT's load boards, for example, provide information on market rates and lanes for each load based on real transactions. This means that you can always be prepared to negotiate the best rates.
Although self-dispatching may only be for some, many owners find it to work well for their businesses. Self-dispatching requires that you are willing to spend time searching for freight. It is also important to be able to negotiate with brokers.
Self-dispatching saves money because you don't need to pay a dispatcher a percentage. In addition, self-dispatching allows you to build relationships with manufacturers and shippers, which can be extremely valuable for your business. Finally, self-dispatching allows you to have complete control of your business. Giving someone else power over your work can be counterproductive because many owners choose to own their businesses.
There is no better option than DAT when selecting the right load board. DAT gives you access to the best freight marketplace and quality customer support to help you navigate the load board.
Things get more difficult when you choose a dispatcher. There is no best dispatch service. This means that you will need to do your research to find the right option for you.
First, you should list the exact services you are looking for from your freight driver. For example, do you only need help with loading loads? Are you looking for help with customer relations and back-office tasks as well? Knowing what you are looking for to start your search is a good idea.
You can then start asking for recommendations from trusted people. Ask your friends and family about the dispatch services they use. Also, it would help if you tried to find reviews online from actual users. This can give you an idea of the quality of a dispatch company's service.
Last but not least, you must consider the cost. What is the dispatch charge per load? Is that enough to cover all costs associated with running your business? Are there any minimum charges you can make per load to cover those accumulated costs? These numbers should be available before you speak to dispatch services to ensure that you only sign contracts in your best interests.
The decision between self-dispatching or using a dispatch company is ultimately up to the owner-operator. It's all about finding the right match. First, you need to ensure that you are working with a dispatcher who can adapt your dispatcher's model. At DKW Express our focus is on making our owner-operators the top dollar while treating them fairly and with respect. If we reach our dispatch capacity, we help owner-operators to get taken care of by one of our partner companies that puts drivers first as well.
DKW EXPRESS LLC