How To Choose A Dispatch Service For Owner Operators
On the road to becoming a successful owner-operator, you’ll need to answer an important question: should you manage your own dispatching or outsource to a dispatch service provider? Depending on your specific needs and goals, you’ll have to make the choice that best suits you and the future of your business.
In this post, we’ll take a deep dive into everything you need to know about using a dispatch service, whether you should try self-dispatching, and how to make the right choices for your long-term success.
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How Do Dispatch Services for Owner-Operators Work?
Truck dispatch services help owner-operators handle their freight by locating loads, establishing relationships with brokers, handling paperwork, and creating efficient routes for drivers. Dispatchers can even perform additional tasks like tracking driver hours and reviewing their logs, improving your relationships with shippers, helping to ensure motor carrier compliance, and much more.
One important note to highlight is that dispatch services aren’t the same as freight brokers. Where a broker acts as a legal entity or middle-man connecting a carrier to a manufacturer or shipper, a dispatcher works solely on behalf of the carrier.
For most owner-operators, the number one factor in deciding whether or not they want to use a dispatch service comes down to cost. Since dispatch services receive a portion of your earnings from every load, these costs can add up quickly for smaller operations. Keep in mind that most dispatch services charge upwards of 10 percent for each load they book, while others may charge a simple flat rate.
How Dispatchers Help Owner-Operators Succeed
After you’ve signed up with a Truck Dispatch Company, it’s up to your dispatcher to get quickly up to speed on your business and the types of loads that best suit you. Then, they’ll work to find the highest quality loads possible that will complement your equipment, driving preference, and abilities. Many dispatchers have existing connections they can tap to find ideal loads for you – or they can use load boards to find the perfect freight in much the same manner as owner-operators do on their own.
Dispatchers tend to be experts on all details of the freight transportation business. They have more insights on the market, best routes, and negotiations. By using load boards such as the DAT board or Truck Stop, they can post your trucks on the board for brokers to reach out and/or directly reach out to brokers that have loads posted to find the right match for you. With the right information about your trucks, lanes, origin, and destination, they can quickly and easily find you the loads you need to keep your business running smoothly at all times. A great dispatcher will always have your loads pre-booked so that you know exactly how to manage your time.
Benefits of Dispatch Services for Owner-Operators
There are many benefits of hiring a truck dispatch company. Below are just a few:
Hiring a dispatch service saves you time, allowing you to focus on your business.
Truck Dispatch Service Providers can help you manage relationships with brokers and quickly resolve issues as they arise.
Dispatchers can perform back-office tasks like billing, paperwork, and collections when necessary.
Dispatchers will ensure you always maintain proper motor carrier compliance.
Dispatchers can reduce delays and help you quickly deal with unexpected issues while you’re on the road.
Truck dispatching companies will develop the ideal lanes for your desired schedule and target goals.
Since dispatchers make their money by taking a percentage of your rate, they are Encouragement to negotiate for higher rates on your behalf.
With a truck dispatch company on your side, you can grow quickly and better weather the difficulties owner-operators often face alone.
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