Question 1

What is a FREIGHT DISPATCHER?

Accepted Answer

A freight dispatcher represents a trucking company in negotiating freight. They find new customers, book new loads, and manage delivery schedules for drivers or owner operators. Many trucking dispatchers also take care of back-office tasks, from customer support to billing and payment collections, and even maintaining motor carrier compliance.    Dispatchers represent the carrier when negotiating freight. They take a percentage off the carrier’s negotiated rate, so they are motivated to find carriers high paying freight. They contact the shippers or freight broker on the carrier’s behalf to negotiate loads that meet the carrier’s requirements.

Question 2

What is a FREIGHT BROKER?

Accepted Answer

A freight broker is an individual or a company that brings together a shipper who has goods to transport with an authorized motor carrier that wants to provide that service. A freight broker works with both shippers and drivers, but does not represent the driver. Their job is to match them together, so everyone is happy. Brokers make money off of this exchange by charging the shippers and then paying the drivers. A freight broker’s salary is typically commission based. Most truck dispatchers will work with freight brokers to help fill up loads.

Question 3

What is the difference between TRUCK DRIVERS & OWNER OPERATORS

Accepted Answer

A truck driver operates a company-owned truck on behalf of a trucking company and paid a salary per miles or loads. An owner-operator drives a truck that they lease or own, and work independently or accept contract jobs.    Owner operators generally earn higher per-mile rates than company drivers, or a percent-of-load rate. Although they make more income per load, they also must pay all the expenses of operating a truck and business. Owner operators are free to operate as they choose and aren’t subject to forced dispatch. It is important that they contract enough loads, at high enough rates, to both cover expenses and make a living. They assume all the risks and responsibilities of business ownership.

Question 4

Can a company be an Owner Operator & Broker?

Accepted Answer

Yes. Companies can be both a owner operator and broker. The registration fee is higer to obtain and both will be recognized under one Motor Carrier Number. They do not need 2 motor carrier numbers, however you will need additional filings and insurance bonds. Becoming both an owner operator and broker can be very lucrative. A consultant with Xecutive Drive can help you with the process. If you are interested feel free to contact us at 561-802-0909 to discuss further.

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