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Freight Broker Vs Freight Agent Vs Dispatcher
People often ask what is the difference between a freight broker and a freight agent. And then a fewer number ask about being a dispatcher. So, there’s a bit of confusion among these three – freight broker, freight agent and dispatcher.
Let me explain the best I can.
Freight brokers – freight brokers are fully self employed and have their broker authority (DOT#, BOC-3 and either a trust fund or surety bond). They call all the shots. This is what most of my clients want.
Freight agents – freight agents can be fully self employed as well but they do not have their broker authority. They work under the authority of a broker who does possess the proper credentials. Agents may be under contract and may not call all the shots.
Dispatchers – dispatchers generally are employees, working for motor carriers. Dispatchers coordinate the pick-up and delivery of freight. They are not required to have their broker authority. Some dispatchers may actually find freight; others rely upon other people in the organization for that. This leaves the dispatcher free to focus on scheduling and keeping company trucks moving.
The people who call me asking about these options want to know which is the best route to go. I tell them, it all depends.
Here’s the scoop according to my experience.
Freight brokers and agents may have UNlimited income potential; dispatchers, on the other hand, work according to their employer’s pay scale.
Freight brokers and agents both are seeking and getting set up with new shippers and carriers.
Freight brokers have more control over their lives and business – not so much for agents and dispatchers.
Freight brokers assume more risk and liability as compared to agents and dispatchers but they can expect a better reward.
Freight brokers are building an asset that can be sold or passed on to other family members; agents cannot be assured of building an asset and dispatchers generally end up in retirement or going on to something else.
Freight brokers spend time building THEIR business not someone else’s.
The comments above are very general but, hopefully, helpful.
My courses are geared for those who have a burning desire to work as independent freight brokers. I used to train people to become agents but I no longer do this UNLESS they have a broker willing to take them on.
Bear in mind that the agent needs to work under a freight broker who has their authority. The reality is most freight brokers want agents who have a book of business and can hit the road running, making money from day one.
Bluntly, brokers don’t want new agents who have no experience or who are without a book of business.
Further, most freight brokers don’t want to train agents. Why? The broker is concerned about putting time and effort into developing an agent and this agent may have plans to leave and establish their own brokerage.
If you have any questions at all on these options, call me at 1-888-526-ATEX(2839).
Lastly, if you want to explore the freight broker and agent options further, grab my eBook, “The Definitive Guide to Growing Your Freight Broker Business Using Freight Agents”.
Go here below to order:
Grow Your Business Using Freight Agents!
This eBook is for brokers who want to learn about using agents and it’s for individuals who may have an interest in working as an agent.
This eBook is given as a freebie for clients on any one of my three training options.
There’s no other information like this in the marketplace.