Personal dispatch services

Yeah, unfortunately you can't do anything without authority other than lease to a carrier and operate under theirs.

 

I've been reading a lot of posts lately trying to find out feedback on strategies for the Spot Market. I don't know how I landed in these Dispatching discussions from previous years, but what I've concluded is that this problem has been on for a long time.

There's a market for Dispatching companies. There still a lot of O/O that use them. The thing is that those companies should be more aligned with the Drivers.

Wouldn't it better if the fees that the Dispatching Company charges is linked to the profit generated by that specific load?

I mean, the only way to benefit both sides is if the risk is shared. So knowing the cost structure of the O/O, and the goals of Profit that he wants to make can make the Dispatching Service find loads that go within that spectrum. And if he/she exceeds, then more money for both.

I think the real problem is that not all Dispatchers (or O/O making their dispatching) have the time to evaluate strategies and double check which loads are going to bring them more money in the mid/long-term. They need to grab something now to keep the wheels turning.

That's what I'm trying to crack with the company I work for right now. How to use a strategy so the trucks I dispatch can make more profit.

 

The only way to be more profitable is not to haul cheap freight period!. We don’t do any cheap freight and my trucks barely sit. Regularly I average $2-5 bucks a mile for loaded and empty miles without breaking a sweat. For example, one of my trucks picked up a load today that had 810 loaded miles and 140 deadhead miles and they paid $4100 plus the detention they are going to pay. So at that rate, that’s well over $4 bucks a mile on loaded and empty miles not including the detention pay. Working hard to get $2 bucks a mile is a time of the past. So, just say no to cheap freight and watch the rates start to increase. Just remember, cheap brokers need trucks more than trucks need cheap brokers. Especially now days with the shortage of drivers and ELD BS! Keep that mentality and you’ll do great!

 

@FAT_CAT awesome work, congrats! And you're totally right, part of the solution is that Drivers start demanding higher pays.
But I was trying to refer to the Dispatching Service Dilemma. If you have (or want) to hire a Dispatching Service I think the best solution is for them to give you a price based on the Profits made for each load, not the Revenue.
That would require smarter moves from the Dispatcher and better strategies. But that's what he's supposed to do, right?

 

That's the only way I would pay someone to dispatch for me. It gives them incentive to get the best rate possible. I would also throw in bonus' if they beat their previous numbers. If a dispatcher is getting hourly or salary they're not going to hustle like they would if they were getting a percentage. Of course this dispatcher would also have to be experienced and/or have plenty of contacts to call up at will. A new guy (and the company he is working for) most likely would starve in this environment.

 

I was reading what everyone was saying about dispatching companies, I use this lady that does a great job for me. She analyzes the market and sees the best areas to send me. She told me that she actually was on a truck for a year and saw first hand how things work, which I believe is very helpful to understanding the business.

 

I wouldn't use her. Just because she was on a truck means nothing to me. A good dispatcher doesn't need to "analyze the market". A good dispatcher already has a list of regular customers they can call up and get me a load for/from at decent rates at any time. Pretty simple.

 

@DSK333 how does a Dispatcher become a “Good Dispatcher” if he doesn’t analyze the market and knows where to go and when to go there?
Obviously that Dispatchers with good contacts are going to have steady work for O/O. But when those contacts don’t work, I prefer someone analyzing the market and making sure that she has a good strategy for my truck than someone trying to grab the best price that appears during their search.

 

Why do you say "Analysing the Market" is a bad thing? Wouldn't you want someone that is making sure she's finding the best load possible?
I think that Dispatchers like the one @bigboss67 mentions are very rare. Most of the people I've seen try to grab the first load with a decent rate, without even trying to understand if that is the best they can find.
I understand that trying to check all the loads available in one area is almost impossible (need better tools for that), but doing some "market analysis" surely helps make a better decision.

 

I never said "analyzing the market" was a bad thing. As I've already mentioned, good dispatchers already have connections. They simply pick up the phone and call a customer to get a load for a truck. Anyone can scan a Loadboard and "analyze the market". Why should anyone pay for that? To each is own but again like I said I wouldn't use anyone for something I can and do easily myself.