Does anybody here use a dispatching-service?

I tell them "this truck hauls heavy loads, dispatchers swallow heavy loads!"

I don't envy people making cold calls for a living but I also refuse to tolerate their nonsense.

 

This is why you’re a good friend Stacey - well said!

 

That is what I am trying to figure out...If all I really care to do is dispatch, would it be easier to operate and book loads for a dispatching company via a "power of attorney", or via a "brokerage"?

I would think that establishing the brokerage requires more effort, time, and money. BUT, if it will allow my business to operate smoother, in terms of gaining access to mega-broker's load boards, booking loads, etc., it might be worthwhile.

What do you think?

 

Question,

Does he have an actual formal "brokerage", or is he committing to loads on your behalf via a "power of attorney"?

I am trying to figure out which route would be best.

 

A brokerage is the better way to go IMO. Are you good at sales? Once you find a good customer or a 3PL that will let you broker their loads you'll be better off. It's tough to find carriers willing to give POA to a stranger unless you're a W2 employee of theirs.

 

In terms of a solo owner-operator scope of operations, a brokerage service has more "nobility" in its nature than a dispatch service or factoring for that matter. The matter is perceived as a parasitic service than should not exist and thrive on owner-operator deficiencies such as the inability to find freight or secure a cash flow.
Dispatching service can be forgiving if it is in its nature superior to what is daily posted on public load boards - it has its own sources of freight that are entrusted to them first vs load boards. The problem with dispatch services is that they require the power of attorney agreement which to me is a huge obstacle to even considering them, even in case I'd have a small fleet of trucks and then some additional dispatching person would be helpful, I'd rather hire someone on an exclusive basis to do the dispatch.

 

You said the following regarding a dispatching service: "it has its own sources of freight that are entrusted to them first vs load boards".

Under what arrangement would that be possible, assuming that the dispatcher does not have a authority to broker? Also, does all freight have to go through an authorized broker before it can be moved by a MC authorized OO?

 

Simply put, a dispatch service is entrusted by a brokerage that rather turns their tenders to the dispatch service then to load boards.
That's one of the selling points by dispatch services when they solicit - they have access to freight before it is even posted on DAT or Truckstop.com.
I personally don't trust it too much but I can't disprove it either.

If you give a dispatch service the power of attorney, they can book a load in your name, using your authority. The load, in theory, should be revealed to you and belong to you but who knows how they can handle it otherwise...

 

Thanks. Seems messy.

 

Solo Owner operators should not need the auxiliary services except for tax preparation.
Finding loads should be an integral part of the owner operator business.
Brokerage is a much different game.
Something that may have a useful, symbiotic connection.