The Independent Freight Dispatcher Operating Playbook

An independent freight dispatcher represents motor carriers under an agency service agreement. Unlike a freight broker who matches shippers with carriers for a brokerage margin, a dispatcher works exclusively on behalf of the carrier to locate, negotiate, and coordinate freight loads, billing a service fee or commission percentage.

Maintaining clear regulatory compliance requires operating strictly within the carrier's designated authority. Dispatchers must operate under a formal Dispatcher-Carrier Agreement specifying authorized equipment, approved freight corridors, minimum acceptable rate per mile, and invoicing authorization.

Dispatchers do not bill shippers directly; brokers and shippers pay the carrier directly or disburse funds via the carrier's invoice factoring company, whereupon the carrier pays the dispatcher's agreed percentage fee.

Before booking the first load, a dispatcher must execute a comprehensive Dispatcher-Carrier Agreement. Key clauses must establish: the agreed fee percentage (commonly 6% to 10% of gross linehaul), payment terms (weekly invoice cycle), the carrier's insurance requirements ($1,000,000 auto liability and $100,000 cargo minimum), and a Limited Power of Attorney.

The Limited Power of Attorney grants the dispatcher legal authority to sign broker rate confirmations, complete carrier setup packets, and communicate with freight brokers on the carrier's behalf. It strictly limits authority to load booking and dispatch administrative execution.

Service agreements should also define detention and layover handling, clarifying whether dispatcher fees apply to accessorial payments and establishing clear protocols for driver route check calls.

Professional dispatching follows a disciplined daily cadence. Between 7:00 AM and 9:30 AM, dispatchers survey load boards, review direct broker emails, and calculate triangulated backhaul routes for trucks delivering that morning.

When evaluating a potential load, never look at loaded rate per mile in isolation. Always calculate Revenue Per Total Mile: Gross Pay divided by (Loaded Miles plus Empty Deadhead Miles). Deduct fuel estimates, tolls, and maintenance reserves to confirm the trip meets the carrier's break-even Cost Per Mile threshold.

Once a rate is agreed upon with the broker, review the broker Rate Confirmation thoroughly before signing. Verify the pickup and delivery addresses, appointment windows, agreed linehaul rate, fuel surcharge, commodity description, weight limit, and specific trailer requirements.

Unpaid dock dwell time is the silent killer of carrier profitability. Standard commercial freight contracts permit two hours of free time for loading and unloading. Beyond two hours, detention rates typically range from $50 to $85 per hour.

To collect detention successfully, strict evidence collection is mandatory. Drivers must notify the dispatcher thirty minutes before the free time window expires. The driver must have the dock receiver stamp the exact arrival and departure times on the physical Bill of Lading (BOL).

Dispatchers must immediately submit written detention requests to the broker email thread with timestamped gate records before the truck departs the facility. Claims submitted days later are routinely rejected.

A successful dispatch business maintains predictable weekly cash flow. Invoicing should occur on a fixed schedule (such as every Friday afternoon or Monday morning) covering all completed and delivered loads with signed BOLs.

Many carriers utilize invoice factoring services to receive immediate payment. Dispatchers can establish direct billing arrangements with the carrier's factoring company, submitting completed load packets directly to the factoring portal and receiving automated dispatcher fee disbursements via direct deposit.

Scaling an independent dispatch agency requires capping the number of trucks per dispatcher at three to five active power units for spot freight, ensuring high service quality, timely check calls, and proactive relationship building with reliable freight brokers.