Third party dispatch?

Lets say you own kw600 transport and are independent, you only want to drive, not look for and book freight,negotiate rates, send packets , and do all the other admin stuff . You've heard or know Rollin is a good negotiater and you and him think he can get you better rates and can move your truck efficiently.
He agrees to book your freight with your authority not his, when RC calls on a load he identifies himself as a dispatcher for KW600 transport not for RC express or his own company so the rate conf will state kw600 not any other company....



RC would charge you a percentage of the rate.

Hope that helped.

If I could find me someone to book my freight at the rates I think are good, to me it would well be worth the fee.

 

I could dispatch trucks easily enough but what I would have no patience for is ornery drivers questioning my every move and refusing to accept what i was booking for ridiculous reasons. If I'm ever dispatching any trucks they'll be having employees in them that do as they're told.

 

oh boy , even then you would have to deal w drivers that think they can decide where and when the truck should go..
I dispatched for a long time at companies that dealt with owner ops & drivers., for the most part I enjoyed avoiding and solving problems, dealing with the drivers and customers, the adrenaline from the stress, but some o/o really suck, you had some awesome drivers also but Its not fun babaysitting grown men.

Ive had a couple guys ask me if I would do independent dispatch for them and have considered it but not sure yet.

 

Very well put!!

Dispatching Services is just an extension of the O/O. The wife/husband that does that work for their spouse isn't brokering. They are just the administrative dept of the O/Os company. That doesn't change if the O/O contracts someone else to do that job.

I work as a freight agent...aka...Broker but I would love to dispatch for a couple drivers instead. I see how the game is played and the money is manipulated and I hate being in the middle. I would rather work for the driver(s).

 

Will the driver need to put xyz Trucking on the side of his truck even if it is one load?

 

if youre running your own authority, your name and #s need to be on the truck. Im guesing if load conf says kw600 and a rc trucking comes in fir the freight it might be seen double brokering

 

No. Dispatch service does not have any numbers or name on the door. They are booking the load on your behalf using your numbers. So do you see why it is silly to utilize a dispatch service? Just an unnecessary hand in the pie. All they do is look at loadboards and make phone calls then book the freight for your truck. It's one thing to have a wife who's a team player booking your freight. It's another thing altogether to pay someone to do something that is the very heart and core of your business and not a difficult skill just takes patience and practice. Double broker is a term that gets kicked around loosely. I'd bet 9 times out of 10 someone screaming double brokered is probably hauling a load that originated with one broker or 3PL and they asked a different broker to help cover the load. Nothing shady about it at all. It's how to get exposure and cover freight when you're in a bind. Then you have shippers who give a load out to a dozen different brokers and say cover it. The shyster brokers pretending to be a carrier and booking from another broker, without the broker who owns the freight knowing it, and then double brokering it are out there but you can usually spot them 10 miles away. Almost every rate confirm I've ever seen specifically prohibits that. The broker who owns it despises that practice as much as the truckers who see it.

 

thanks for the clarification... one more thing, is 3PL 3rd party logistics?

 

do the math. a "dispatch service" books me a load for $2/mile on 500 miles. $1000, I get $950, they get $50 @ 5%. My expenses run about $1.20 which I think is fairly average. So I net $350 minus whatever deadhead was involved rather than $400 on that load.

But I didn't look at the board, what if there was a high load volume that day ? What if I could have made a few more calls or pushed a little harder and gotten $2.50 ? @ $2.50/mile that load is $1250, the dispatch service would get $62.50, and I would get $1187.50, or net of $587.50, or $650 if I book it myself.

Don't get lost in the math ! you have about $300 net to lose or gain on this load while the "dispatch service" only has $12.50 to lose or gain. How are you gonna put $300 of your money in someones hands for the price of $12.50 ? how are you going to expect them to push on and make more phone calls or protect your interest's with so little to gain ?

 

Profit is the rule book. I will pay someone to do something I don't want to do, or can't. You get some, I get some. What You get is what You will do it for.