Whether your a new entrant to the trucking industry or an old-timer, the decision to use a dispatching service is both a business and a personal choice. Owner-operators are a fiercely independent lot with their personalities often matching their business models. Some drivers are happy to do every detail of their business start to finish. Other drivers like to concentrate on the core activity of trucking which is picking up and delivering their loads, leaving the details to others. There is no right or wrong answer in choosing to dispatch yourself or to rely on a dispatch company to handle the task. Here are some pros and cons of truck dispatch services:
Pros
- Administrative Support:
- Load Finding: Dispatch services can find and secure loads for drivers, saving them time and effort in searching for freight. It is also safer since you can concentrate on driving instead of scanning for loads and negotiating a rate.
- Paperwork Handling: Many dispatch services manage the paperwork, including billing and compliance documentation, which can reduce administrative burdens.
- Efficiency:
- Optimized Routes: Dispatch services use software to plan the most efficient routes, potentially reducing fuel costs and delivery times.
- Time Management: With someone else handling the logistics, drivers can focus more on driving and less on administrative tasks.
- Consistent Work:
- Regular Loads: Dispatch services can help ensure a steady stream of work, which can provide more consistent income.
- Network Access: Dispatchers often have access to a broad network of shippers and brokers, increasing the opportunities for finding loads.
- Negotiation and Support:
- Rate Negotiation: Experienced dispatchers can negotiate better rates on behalf of the driver.
- Problem Resolution: Dispatch services can assist with resolving issues that arise during transit, providing support to the driver.
Cons
- Cost:
- Service Fees: Dispatch services typically charge a fee, which can be a percentage of the load value or a flat rate. This cost must be weighed against the benefits.
- Reduced Profit Margins: For some drivers, the fees associated with dispatch services may reduce overall profit margins.
- Dependence on Dispatchers:
- Reliability: The quality of the dispatch service can vary. Dependence on an unreliable dispatcher can lead to inconsistent work or poorly negotiated rates.
- Loss of Control: Some drivers may feel they lose control over their schedules and business decisions when relying on a dispatcher.
- Compatibility:
- Fit with Business Model: Not all dispatch services may align with a driver’s specific business model or preferences, leading to potential mismatches.
- Customization: Limited ability to customize services to fit specific needs can be a drawback for some drivers. Example: Special requests from customer- A driver might not have all the tools to accomplish a request and a dispatcher is there to assist as needed.
- Quality of Loads:
- Load Preferences: Dispatch services may not always find loads that match a driver’s preferences or specialties, leading to dissatisfaction.
- Deadhead Miles: Without careful planning, drivers might end up with more deadhead miles (empty miles), which are non-revenue generating and costly.
Know whom you are doing business with
Another factor to consider if you choose to use a dispatcher is country of origin. Many dispatching services arose in the freight chaos of 2020-2022. In this business, although politically incorrect, you have to profile people you do business with in order to protect yourself. If you encounter a dispatcher or for that matter a broker that cannot be readily identified as from within the United States, please do your due diligence. Please ask the following questions when evaluating a potential dispatch company:
- Where are you located?
- How long have you been in business?
- What is your background/experience in the industry?
- What type of equipment have you dispatched?
- Can I speak to one of your current drivers for a reference?
- Who will be my dispatcher and are they full-time?
- May I speak with my dispatcher before signing up?
Use a US based company that speaks clear english. Remember, your dispatcher represents your trucking company. You want to be able to clearly understand their speech as do your customers and brokers. If they can’t easily be understood chances are mistakes will be made that will lead to problems later on.
Warning signs
- Never allow a dispatcher or dispatching service to handle your money. Have any freight payments paid directly to you.
- Contract term – always ask if you can cancel the contract at any time for any reason.
- Beware if you are being rushed to make a decision. Make sure you have a good feeling about the dispatcher before signing up.
- Never give your trucking credentials to a prospective dispatcher until you make a decision to use them. – identity theft happens.
- Beware of low or flat fees. You get what you pay for so don’t get lured into a low price dispatcher just because it is cheaper than others. Quality service usually pays you back and more.
You need to be comfortable with the people who you partner with and asking a few questions may save you problems in the future.
Where to start if you are undecided on what to do?
Truckamuck endorses Service First based in Winter Park, FL. This company has been dispatching owner-operators since 1995 and has a deep bench of talent with experience in flatbed, van, and hotshot equipment. Please visit them at http://www.flatbedstepdeck.com. If you like what you see then give them a call and see if they can help you with your business goals.
Conclusion
Truck dispatch services can be beneficial for truck drivers by providing administrative support, finding loads, optimizing routes, and ensuring consistent work. However, drivers need to carefully consider the costs, potential loss of control, and compatibility with their business model. Evaluating multiple dispatch services and selecting one that aligns well with individual preferences and business goals can help maximize the benefits while minimizing the downsides.
What’s your opinion?
For more articles by Truckamuck please go to https://truckamuck.com/trucker-talk/.
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