Link 01Two chains, one load

Dispatcher vs broker: who works for whom, and who needs authority

Both talk about loads all day, so the two get mixed up. They sit on opposite sides of the deal. A freight broker arranges the move for the shipper and needs federal broker authority. A dispatcher works for the carrier and, done properly, never touches the shipper or the freight money.

Get a dispatcher on my side

Below is one EXAMPLE load shown two ways: with only a broker between shipper and carrier, and with a dispatcher added on the carrier's side. Each link shows its role, the authority it needs and where the money goes. Then tick the boxes to see what happens when a “dispatcher” starts doing a broker's job.

EXAMPLE load: broker only

Shipperno FMCSA authority needed to ship
Has freight, agrees a rate with the broker
pays the broker
Brokerbroker authority + $75,000 security
Arranges the move, sends the rate con to the carrier
pays the carrier
Carriermotor carrier authority
Hauls the load under its own MC
receives freight pay

Same load: dispatcher on the carrier side

Shipperno FMCSA authority needed to ship
Has freight, agrees a rate with the broker
pays the broker
Brokerbroker authority + $75,000 security
Sends the rate con directly to the carrier
pays the carrier directly
Carriermotor carrier authority
Confirms the load, signs the rate con, hauls
receives freight pay, pays the dispatcher's fee
Dispatcher (works for the carrier)no broker authority when it stays on the carrier side
Finds and negotiates loads with brokers, under written agreement with the carrier
paid only by the carrier

What if the dispatcher...

sets rates with the shipper collects the freight payment

On the carrier side: no shipper contact, no freight money, paid only by the carrier under a written agreement.

Sources: broker authority broker security dispatch guidance

Link 02The legal line

The legal line between dispatching and brokering

A broker of property needs FMCSA broker operating authority and has to follow the broker rules in 49 CFR Part 371 . It also has to file financial security of $75,000, either a surety bond on Form BMC-84 or a trust fund on Form BMC-85 . That security is what a carrier can claim against when a broker doesn't pay. You can read more about how brokers work in our guide to the freight broker.

There's no federal definition of a dispatch service. In its June 2023 final guidance, FMCSA said a dispatcher can be either a carrier's bona fide agent or a broker, depending on what it actually does . The name on the business card doesn't decide it. The activities do. And the more control the carrier keeps over the dispatcher's decisions, the less likely the dispatcher needs broker authority.

Signs a dispatcher is really brokering

The guidance lists factors that point to needing broker authority. In plain words:

Negotiating freight directly with a shipper or the shipper's representative
Taking payment for a load from the broker or factoring company, or handling any part of the freight money
Arranging loads for a carrier with no written agreement in place
Accepting a load first, then looking for a truck to haul it
Taking a load several of its carriers could haul and assigning it to one of them
Being named on the shipping contract, or offering freight to the open market of carriers

Unauthorized brokerage carries federal penalties, and a carrier who works with an unlicensed broker in disguise carries the risk of never getting paid, with no bond to claim against.

Why the line matters to you as a carrier

It isn't only the dispatcher's problem. When a middleman collects the freight payment, your money sits with someone who owes you nothing under federal rules and has posted no bond. When a dispatcher talks rates with the shipper and then sells the load to you, the margin it keeps is invisible, and you can't judge whether the rate is fair. When a dispatcher assigns loads among its carriers, you can end up competing with other trucks on its list for the same freight, and the person who's supposed to be working for you is choosing between you and someone else. Keeping the dispatcher on your side of the deal protects your money, your rates and your loyalty.

Link 03How we stay on your side

How we stay on the carrier side of the line, every load

We built our process around the factors in FMCSA's guidance, so you never have to wonder which side we're on. Here's what that looks like on a real load.

A written agreement with your company
Before we dispatch your first load, you get our dispatch agreement: the fee, the notice period and what we do for you. We act for carriers who signed it, nobody else.
Brokers only, never shippers
We find loads through brokers and their posted or unposted freight. We don't solicit shippers, set shipper rates or sign shipping contracts.
Loads for your truck, not a load looking for a truck
We search for your truck, with your lanes and your floor rate. We don't take a load and then shop it around our carriers.
You confirm, you sign, you get paid
You confirm or refuse every load, with no penalty for a no. The broker sends the rate con straight to you; you sign it in your company name. The broker pays you or your factor directly.

Our dispatch income is the fee you pay us: a percentage of the rate con gross on delivered loads, billed weekly. No broker pays us anything, no factor pays us for your loads, and freight money never passes through us. We do have one disclosed referral relationship with a factoring company, explained on our disclosure page; using it is optional and it never touches your load payments. The fee is set out on what we charge, and the full step by step is on how we work.

What we won't do, even if asked

Sign a rate con for you, with or without a power of attorney
Have broker payments sent to us, or bill a broker for anything
Take a referral fee from a broker for booking your truck
Quote a shipper or take a load directly from one
Book a load you haven't confirmed

What that means day to day

Each broker knows it's booking your company, because your packet, your MC and your signature are on everything. When a broker pays late, the invoice is yours and so is the claim, and we help you chase it with written reminders and the paperwork attached. If you ever stop working with us, nothing has to be untangled: the brokers already know you, and the rate cons and payments were always in your name.

Link 04Broker, dispatcher, agent

Freight broker vs dispatcher vs freight agent

A third role adds to the confusion: the freight agent, who usually works under a brokerage's authority, finding shippers and booking their freight. Our guide to freight agent vs freight broker goes deeper. Side by side:

Who each role serves, who pays it and what authority it needs
	Freight broker	Dispatcher (carrier side)	Freight agent
Works for	The shipper's move; its own brokerage	The carrier	A brokerage, finding shippers
Paid by	The shipper (keeps the margin over what it pays the carrier)	The carrier, by agreement	The brokerage, usually a commission
Federal authority	Broker authority and $75,000 security	None, when it acts as the carrier's agent	Works under the brokerage's authority
Talks to shippers	Yes	No	Yes
Handles freight money	Yes, pays carriers	No	Through the brokerage
Signs the rate con	Issues it to the carrier	No; the carrier signs	Issues it for the brokerage

Notice where the carrier sits in every column: as the party that hauls the freight and signs the rate con. A broker and an agent sit across the table from the carrier. A dispatcher sits on the same side, which is why the money has to flow from the carrier to the dispatcher and never the other way around.

What a broker does well

Brokers hold the shipper relationships, take on the job of covering freight, and pay carriers from their own funds. Good brokers are worth a lot to a small carrier. A dispatcher doesn't replace them; it helps you find and work with the good ones.

Questions to ask any dispatcher

Who pays you, and does any money come from brokers or factors? Do you ever talk to shippers? Who signs my rate cons? Do I approve every load? Is there a written agreement? Clear answers to those five tell you which side of the line a dispatcher works on.

Check a broker's authority yourself

Any broker you haul for should show active broker authority and a bond or trust on file in FMCSA's public records. Look up the MC number on the rate con, not the one in an email signature, and make sure the legal name, phone number and email domain match what's on the record. If something doesn't match, call the broker back on the number listed in the record before you confirm anything. We run that check on every broker before an offer reaches you, and you can run it too in a couple of minutes.

Link 05FAQ

Freight broker vs dispatcher: common questions

Questions carriers ask

What is the difference between a freight broker and a dispatcher?

A freight broker arranges transportation between shippers and carriers, sets the rate with the shipper, sends the carrier a rate confirmation and pays the carrier. It needs FMCSA broker authority and $75,000 in financial security. A dispatcher works for the carrier, finding and negotiating loads with brokers. It doesn't deal with shippers or handle freight money, and the carrier pays its fee.

Does a truck dispatcher need authority?

Not when it stays on the carrier side. FMCSA's 2023 guidance says a dispatch service that works under a written agreement with a carrier, goes through brokers, avoids shippers and is paid only by the carrier generally acts as the carrier's agent. If it negotiates with shippers, takes payment from brokers or factors, or allocates loads among carriers, broker authority is indicated.

Who pays a dispatcher?

The carrier, and only the carrier. Under FMCSA's guidance, a dispatcher taking compensation from a broker or factoring company is a sign it should hold broker authority. We bill the carrier weekly on delivered loads: 5% of the rate con gross with 6+ months of authority, 7% before that and 4% per truck for fleets.

Can a dispatcher sign a rate confirmation?

A rate confirmation is an agreement between the broker and the carrier, so the carrier should sign it in its own company name. Some dispatchers sign under a power of attorney, but we never do. The broker sends the rate con straight to the carrier, the carrier reads it and signs it, and that keeps the carrier in control of every load.

Is a dispatcher a broker in disguise?

Some are, and that's the problem FMCSA's guidance addresses. A so-called dispatcher who takes freight from shippers, hands loads to whichever carrier is free, or collects freight payments is brokering, whatever it calls itself. A real dispatcher works for named carriers, finds loads for their trucks through brokers and never touches freight money. Ask any dispatcher who pays them.

Should I use a broker or a dispatcher?

It isn't either-or. Most carriers without direct shipper contracts haul brokered freight, and a dispatcher helps you work with brokers better: more setups, better terms, broker checks and payment follow-up. A broker works the shipper side of the deal; a dispatcher works your side. Many carriers use both, through the same load.

A dispatcher who works for your link in the chain

Paid only by you. Brokers only, never shippers. You confirm every load and sign every rate con.

Get a dispatcher on my side

We work for this link

Carrier

Hauls the load under its own MC and signs the rate confirmation.

Paid by the broker (or through a factor) at the carrier rate.