The Difference Between a Freight Broker, Freight Agent, and a Dispatch Services

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2+ y ago 10:50

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Topics Discussed: Difference Between a Freight Broker, Agent, and Dispatch Service

What is a freight broker?
What is a freight agent?
What are freight agent’s responsibilities?
What Is an independent dispatch service?
Pros of starting as an agent

Episode Highlights:

[00:15] A freight broker is an intermediary that connects carries and shipper to make a match.

[01:17] A freight agent is a solopreneur, independent contractor, or small business that works under the authority of a freight broker. An agent is paid straight commission that is around 50-70% of the profit on every load. They don’t have to have a bond or authority; they only have to work under a licensed freight broker.

[02:34] Freight agents’ primary job is to find shippers, assist with their loads by finding trucks that match their loads and see those loads from pick up to delivery. They source carries, negotiate, dispatch, and follow shipments through delivery.

[03:14] An independent dispatch service is not a freight agent or a freight broker; they are neither. They are an indie contractor or small business owner that contracts with carriers, owner-operators, or small fleets to help find them loads. They go to load boards and find loads from brokers; they help carriers find brokered loads and help set up papers between broker and carrier. The FMCSA has said that independent dispatch services are illegal; they are unauthorized brokering. They are doing it without authority.

[08:06] The benefits of starting as an agent are low cost of entry, low risk, opportunity to earn income is high. Also, it’s important to note that if you can’t make money as an agent, then you will struggle as a broker.

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