If investing in a van or truck is not feasible or desirable, another path in the transportation industry is becoming an independent freight dispatcher. Dispatchers help owner-operators find and book freight in exchange for a percentage of the load payment.
What Does a Dispatcher Do?
A dispatcher represents one or more carriers and negotiates with brokers or shippers to secure loads on their behalf. Their goal is to find profitable freight opportunities and negotiate the best possible rates.
Dispatchers typically earn a commission ranging from 5 to 10 percent of each load. For example, if a load pays $500 and the dispatcher charges 8 percent, the dispatcher earns $40 while the carrier receives $460.
Benefits of Using a Dispatcher
- Finds and books loads on your behalf
- Negotiates rates with brokers and shippers
- Reduces time spent searching load boards
- May assist with paperwork, invoicing, and driver communication
- Allows drivers to focus fully on the road
For new owner-operators managing multiple responsibilities, this support can be extremely valuable.
Self-Dispatching vs Hiring a Dispatcher
Many new carriers choose to self-dispatch using load boards to avoid paying commission fees. If you have the time and confidence to search listings, make calls, and negotiate rates, self-dispatching can increase your overall profit margins.
However, if you prefer to focus solely on driving or do not feel comfortable negotiating with brokers, working with a dispatcher can help jumpstart your business and provide consistent freight opportunities.