Dispatch companies are a critical topic for shippers, brokers, and carriers. Companies within the industry often don’t know exactly what they do or whom they work for. This article will talk about dispatch companies in the US, common misconceptions, and the red flags you should be aware of to ensure you avoid issues and access a seamless and efficient operation.
Types of Freight Dispatch Companies
There are various ways dispatch companies operate. In some cases, dispatchers work as a part of the carrier’s company. In other cases, they are independent of the trucking company and dispatch for other trucking companies. Usually, smaller carriers are the ones that access this type of service.
Trucking Dispatch Companies Red Flags
- Be aware of the usage of sales pitch and cold calls.
- These companies aren’t regulated; therefore, they may try to do and say anything to book your loads.
- They will give you multiple MC numbers to set up if the first one does not meet your standards.
- Watch out for the "we have multiple drivers in the area" phrase when they cannot provide information. This probably means they do not have a carrier in the area or are trying to broker the load out themselves.
- Blame game”, they’ll blame others for not providing adequate services.
- Contact information that doesn’t match with the carrier information.
- They will often not give driver information for check call or tracking purposes. Common excuse is “Driver has an older phone that can’t track or the driver's phone is broken”.
- They will send incomplete BOL’s after pickup, often missing the drivers name, number and trucking company that checked in for the load.
How to Ensure You Are Provided With the Best Dispatch Services From the Dispatch Company?
Clear and transparent communication
You must communicate clearly and transparently to avoid most issues with dispatch companies. If they’re going to onboard a new MC, it’s critical that you know about it and onboard them so they have all the information they need to provide high-quality services.
Utilize technology and platforms like Carrier Assure and Broker Carrier
By using scoring platforms like Carrier Assure, you’ll be able to access relevant information about the companies and MCs you’re working with or want to start working with. That information will help you make the right decision and receive the best service possible. With Broker Carrier, you’ll be able to announce your loads and set up drivers as soon as 30 seconds with just a click of a button. You will get alerts when other brokers add a carrier to their DNU list for double brokering with Broker Carrier.
Verification calls
An additional step you can take to verify if the dispatchers are authorized to book loads from specific carriers is to look for the company’s contact information, which you can find on Carrier Assure, and ask them directly.
Verification calls to double check insurance/factoring information to ensure the NOI is valid and they are actually insured under the policy.
Build a carrier network
Utilize companies that are vetted and provide a high-quality service and then create a robust carrier network which allows you to have reliable companies working with you.
Be knowledgeable about the transportation process
If you know exactly what you’re talking about, it’s less likely you’ll get scammed or fall into double brokering. Take additional steps to ensure these carriers are vetted. Make sure you understand all the requirements and things to consider when transporting freight.
Load Boards
As companies start to search to build relationships with carriers, many are steering away from traditional methods like using load boards.
Load boards have become something you can use to help when you need to move freight fast, but they’re no longer necessary. You can create strong business relationships with carriers and nurture the carrier network to ensure you have trusted companies moving your freight year-round instead of having to use load boards every time.
The Difference Between Co-Brokering and Double Brokering
We all know about double brokering. But there is a concept of co-brokering that some transportation companies utilize. But there’s a big difference between both, and it’s the transparency aspect. In co-brokering, all parties know what’s going on and how the business is being handled, and they are okay with it.
Whereas with double brokering, managing the freight transportation without anyone knowing about it or brokers posing as carriers and then going on load boards as brokers to find the carrier to actually move that freight.
Making sure you have a vetted dispatch company will be a critical part of your transportation process. Be sure to communicate with the carriers you are working with and call them directly to verify that the dispatcher you are talking to is actually authorized to book loads for that company. To dispel the common misconceptions of truck dispatch companies in the US, use technology to find relevant information about them and ensure you get the service you need for your business. Those additional steps will enable you to provide higher-quality services and avoid issues.
