Freight Dispatcher: A Comprehensive Guide

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If you’ve ever wondered how online orders arrive at the right place on time, you have a freight dispatcher to thank. Think of them as logistical wizards who, like the game of Tetris, fit all the pieces of the supply chain puzzle together with their expertise in logistics and fleet management. They coordinate and handle all the movement of goods from manufacturers to shippers.

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Freight Dispatcher Guide

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In this guide, we’ll discuss what a freight dispatcher does, how to become one, their challenges and some valuable tips.

What Does a Freight Dispatcher Do?

Freight dispatchers (aka truck dispatchers) are responsible for managing trucks or freights and coordinating different fleet management modules like cost negotiations, dispatching, scheduling, tracking and routing. They often perform backend tasks such as conducting background checks on drivers, reviewing their performance and logging work hours.

Generally, freight dispatchers are employees of carrier companies, but even independent truck dispatchers can negotiate on behalf of the carrier they’re working with. However, legally they can’t represent manufacturers or shippers.

A freight dispatcher’s day-to-day job includes the following tasks (but isn’t limited to):

Freight Dispatcher vs. Freight Broker

Both freight dispatchers and freight brokers act as intermediaries between manufacturers and shippers. However, their roles are distinctly different. Here are some key differences between the two jobs.

Freight Dispatchers Freight Brokers
They are employees of the carrier company and act on their behalf. They are independent third parties who coordinate between manufacturers and carriers.
Don’t usually have any license from FMCSA. The Federal Motor Carrier Safety Administration (FMCSA) provides them with a license to arrange transportation between shippers and carriers.
Manage drivers’ assignments and ensure they deliver products on time. Usually have no control over trucks or drivers.
Can’t represent manufacturers or shippers. Can legally represent shippers or manufacturers.
Work for the benefit of their carrier company. Conduct negotiations between shippers and carriers. However, they’ve no personal investment on either side.
Freight dispatchers or fleet managers dealing with freight brokers need exemplary negotiation skills to get the maximum carrier rate. Freight brokers try to negotiate the lowest rate for the carrier since the difference between the shipper’s and the carrier’s rate is their payment.

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How To Become a Freight Dispatcher

There are two ways to look at freight dispatching as a job. You can either work for a carrier company as their permanent employee or become an independent freight dispatcher and start your business.

If you want to become a freight dispatcher for a trucking or freight company, you’ll first need to acquire some skills, which we’ll discuss below.

To begin with, you can start looking for open positions on job boards or research top trucking companies and approach them, expressing your interest in the freight dispatching role. Ask them for entry-level positions and training opportunities to gain practical experience.

Here are some skills that you’ll need to become a freight dispatcher:

  • Communication: Freight dispatchers spend a great deal of their time talking on the phone. You might have to manage multiple drivers at the same time. Coordinating with so many people at once requires superior communication skills. Remember, the other side may not communicate well, so you need to be patient and empathetic even under stress.
  • Multitasking: Truck or freight dispatchers have to manage multiple tasks with different priorities at a time, with strict deadlines and limited resources. So you need to be good at multitasking to succeed in this field.
  • Attention to Detail: You’ll have to process a massive amount of information regarding freights, trucks and drivers to do your job effectively. Besides, as part of your backend responsibilities, you must review paperwork to identify and rectify errors.
  • Organization: As a freight dispatcher, you’re responsible for handling critical modules of the fleet management process. You need to organize your schedule to ensure you can monitor trucks, avoid delays and dispatch drivers efficiently.

Joining another company’s workforce and creating your own are two completely different ball games. Now that you know the skills required to become a freight dispatcher for other companies, let’s discuss how to be an independent freight dispatcher and start your own business.

Steps To Start Your Own Business

Before jumping right into business planning, make sure you educate yourself about the nitty gritty of the freight dispatching industry. Once you have a firm grasp, follow these steps to start your own organization:

Steps to Start a Freight Dispatcher Business

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Step One: Register

The initial step is to name your business and register it. We recommend you choose a name that gives your customers a basic idea of what your company does. Avoid using generic terms like transportation or logistics and go with words like dispatcher or dispatching.

After finalizing a name, apply at IRS for your employer identification number (EIN) and determine the business structure (partnership, sole, LLC. or Inc.). Remember to create drafts of important contracts, including service agreements, charges and carrier agreements. Preplanning these drafts gives you an advantage in partnerships.

Step Two: Create an Online Presence

Once you have your business up and running, it’s time to let people know about it. The best way to do that is by establishing your online presence. You need two things for this: a website and social media accounts.

Firstly, get a domain name for your company and set up your website. Then open social media accounts, including Facebook, Instagram, LinkedIn and YouTube.

Here are some things you need to remember while creating your website:

  • The homepage should contain your business’ vision and mission. It should be able to capture your prospective customer’s attention so that they don’t leave easily.
  • Make a special section for your sales pitch that’s irresistible to the audience.
  • Your website should have information that can boost the credibility of your business.

Now, if you’re an experienced trucker or fleet manager, you’ll have a lot of recommendations to add from your sources. However, don’t worry if you’re just starting out. You can approach your peers and mentors for personalized recommendations to display on your website and help build your credibility.

Step Three: Load Board

Now that you are done setting up your business and letting the world know about it, you must start running your operations.

But how do you get projects? Subscribing to credible load boards can be the first step toward finding premium freight projects for your business. Go through your load board results and look for projects that best match your abilities and expertise.

Step Four: Network

The only way to successfully scale your business is through socializing and making connections in the freight industry. Even if you use social media advertising and load boards, networking with shippers and even brokers can open doors to excellent opportunities. You can also take the help of online freight directories to grow your network even further and find prospective partners.

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Job Market

A freight dispatcher handles crucial parts of fleet management, requiring focus, attention to detail and excellent communication. If you enjoy managing diverse sectors and interacting with multiple people, this can be a rewarding career for you.

While many consider freight dispatching a challenging job, it can provide you with valuable experience and opportunities to reach leadership positions in the transportation sector. It also helps you expand your professional network within the industry.

The global cargo shipping industry is estimated to reach 13.19 billion tons by 2028, increasing at a CAGR of 2.5% between 2021 and 2028. Also, the American Trucking Association forecasted that total revenue from freight shipments will increase from $1083 billion in 2021 to $1,627 billion in 2032.

Freight Dispatcher Market Stats

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Looking at all these figures, we can predict that freight dispatcher jobs will increase in demand in the foreseeable future.

Tips To Become a Successful Dispatcher

The crucial thing that makes someone successful in their job role is experience. Additionally, to become a successful dispatcher, you must keep learning and be passionate about trucking.

Here are three tips that you should keep in mind:

  • Find a Good Mentor: Sound guidance and exceptional training will help you in every aspect of your journey. This is especially important if you have little to no experience in this field.
  • Invest in Proper Training: Several online courses can help you secure a job but remember that you need additional knowledge and skills to become an independent freight dispatcher. Find a course that covers key business topics like marketing, customer handling and trucking modules to get a well-rounded education.
  • Look for a Good Fleet Management Solution: An efficient software with top fleet management features can simplify your job by automating several management aspects and eliminating human errors.

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Next Steps

You can only excel in a job if you’re passionate about it and have proper training. If you want to be a freight dispatcher, don’t jump right into it. Do your research, enroll in comprehensive courses and make a career plan. We hope this guide helped you understand different aspects of this job role.

How much experience do you have in the trucking industry? What inspired you to pursue a career as a freight dispatcher? Let us know in the comments below!

Tamoghna DasFreight Dispatcher: A Comprehensive Guide

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