How to expand my business

Ok, then maybe that works but I still don't know if they can legally do that for more than one company under their own LLC or business. If you look at the definition of a broker it is the same as what a dispatch service does. It's just the dispatcher isn't booking direct with the shipper/receiver but rather re-brokering because yes they are arranging transport and are negotiating rates.

IMO.. they need to clarify the laws, because this is clearly a gray area and for the way things work now the laws are kinda outdated in that aspect. I suspect back when the laws were written dispatchers simply worked for 1 company. Maybe that's why they don't go after them? Because they know the laws are outdated.. but who knows.

 

I had to reread this post to get what you are referring to. I think 24 Hotshot will be better off keeping the Dispatch Service as a separate entity for his Hotshot service. Where as his Carrier’s 1099’s and the Hotshot side remain separate. Also any liability remains separate. Example there was a post earlier today where a Dispatch service was ripping the carrier off, ( very unfortunate carrier just starting out ) now having said that, their are many above board Dispatch Services. They will for a fee find a load for a carrier. There is a guy on here that started moving from the big trucks to offering his service to other carriers. They have about 30 years experience.

 

A broker is also a dispatcher. When my broker sends me a email it will have the pickup location and the drop off location along with a rate confirmation. He is sending me or dispatching me. He has the freight from the shipper who is needing it moved. My broker knows where I am and knows I am probably empty, if not I would let him know. A broker will call a dispatch service needing a truck to move a something BEFORE he puts it on the load board so he keeps the freight ( another broker or carrier ) can not bid on the freight. The Dispatch Service may have a number of trucks available, in different parts of the country. A carrier can move freight without a broker being involved he just can not offer it up for a fee. A broker needs to be bonded to offer this service. A Dispatch Service doesn’t need to be bonded. A Dispatch Service is payed by the carrier. A carrier is payed from the broker. The broker is payed by the Shipper.

 

Yeah, I'm not against dispatch services btw. (for myself i'm against them because I don't think anyone else will dispatch my truck better than myself but that's a different argument lol).

I'm just pointing out that I don't think they are actually legal under the current laws/regulations. With that said the govt doesn't seem to be going after them, so who knows what to think of that.. It's just a gray area which is what I was trying to show as IMO the legality is very much in question when looking at FMSCA regulations/definitions.

I mean by my understanding when reading the definition and regulation, it makes me believe to be legal you'd have to be a broker. Maybe I'm wrong or maybe the govt is purposely overlooking them.. I dunno but that's just what I see when I read it and as to the youtube vid and a few others I've seen I'm not along in that opinion.

 

I don’t know anything about a YouTube video. FMSCA does not regulate a Dispatch Service. They are legit. A good Dispatch Service can make a business successful. A good Dispatch Service has brokers calling them every day to move freight. Not trying to be argumentative, I helped to keep one afloat when I was starting out. The guy later sold the business and as far as I know they are still in business. They pay taxes have a EIN number. Since 2010.

 

So I am sitting home playing on the Truckers Report. I have Coyote,Blue Grace, and a few other brokers sending me loads going all over the country. When I started out nobody sent me emails going all over the place. Only because I have carried and in business for a number of years do they do that. If I had trucks either own or leased I could fill out paperwork to load them. I could do the same thing as a Dispatch Service although it would be very boring for me and I would not last very long. Now looking for myself is also boring but necessary.

 

The way I see it, a dispatch is basically just collecting a finders fee from the trucking company for finding loads.

Weather they come from a direct shipper, or broker makes no difference. They are filling out the rate con in your company name, not their's. They are acting as an agent on your companys behalf. Then you pay the dispatch a % of load, or weekly fee, whichever you agreed on in writing..

They would be brokering if they signed a rate con in their company name from a direct shipper. Then made a new one with your name. If they did that, they'd have negotiated an unknown to you rate from the shipper. Then they'd sell you the load for less money than they got it for.

If they do the same as above but booked the load from another broker, they'd be double brokering..

I'm my view the dispatch is not brokering if you pay them. When they get paid 1st, & try to pay you out of what's leftover, that's brokered freight..

 

That’s a whole lot less words that I used, thanks again.

 

LoL, I understood what you was drivin' at there. It came across well.

I'm no good at typing, especially since I'm trying to type on a phone 99% of the time. I read 50x's more than I actually chime in on.

I've picked up quite a bit from you over the years, so thank you for that. Especially on the other LTL HS forum. That was a great place with lots of info, but seems to have tailed off for some reason.. Did you ever seen what I'm rolling around in now.? Finally got around to stretching the frame, & a 2020 48' chaparral.

 

Nice setup, where was the picture taken? It looks like home.