WHO IS ON YOUR SIDE?
Dispatcher vs broker: one works for you
Brokers and dispatchers both talk about loads and rates, so carriers mix them up. They sit on opposite sides of the deal. A broker works for the shipper and earns more when your rate is lower. A dispatcher works for you and earns more when your rate is higher. We are a dispatch service, not a broker.
FOLLOW THE MONEY
Where each one sits in the chain
Toggle between the dispatcher and the broker. The green boxes show who each one works for, and the bottom row shows how each gets paid and what license it needs.
- Works for
- You, the carrier
- Paid by
- A percentage of your gross, paid by you
- Wants your rate
- Your rate higher
- License
- Works under your authority as your agent; takes no money from shippers or brokers
SOURCE: BROKER DEFINITION: eCFR, 49 CFR 371.2; FINANCIAL SECURITY: eCFR, 49 CFR 387.307; DISPATCH SERVICES: FMCSA, Federal Register, June 16, 2023. CHECKED OCTOBER 2026. NOT LEGAL ADVICE.
SIDE BY SIDE
Freight broker vs dispatcher, point by point
| Freight broker | Carrier-side dispatcher (HaulTerminal) | |
|---|---|---|
| Works for | The shipper | The carrier |
| Paid by | The margin on each load | The carrier, a % of gross |
| License | FMCSA broker authority, $75,000 bond or trust | Acts as the carrier's agent under the carrier's authority |
| Wants your rate | Lower: it widens the margin | Higher: it raises the fee and your take |
| Who signs the rate con | Issues it to the carrier | The carrier signs; we never sign for you |
| Sees the shipper's price | Yes | No, only the offer to the carrier |
| Conflict risk | Built in, by design | Only if the dispatcher also takes broker money |
YOU NEED BOTH
Brokers aren't the enemy
Most truckload freight in the spot market moves through brokers, and good brokers keep a lot of small carriers in business. Having a dispatcher doesn't mean avoiding brokers. It means having someone negotiate with them for you.
A good broker relationship is valuable, and we build them for you: on-time loads, fast updates and clean paperwork earn repeat freight. What we don't do is let a broker's first offer become your rate without a counter.
WHAT A DISPATCHER DOES IN THE DEAL
On your side of the table
- Finds loads that fit your truck, lanes and floor rate
- Counters the broker's offer and walks away from bad ones
- Checks the broker's credit and authority before you are booked
- Makes sure the terms you agreed are on the rate con sent to you
- Claims detention and layover from the broker when they are owed
WHEN IT GETS BLURRY
Red flags that a dispatcher is on both sides
Some outfits call themselves dispatchers but act like brokers, or take money from both sides. Watch for these. Read more in when a dispatcher works for the broker.
They sign rate cons for you
Then they can commit your truck to loads you never saw.
They pay you, not the broker
If money for your loads passes through them, ask why.
They push one broker's loads
A dispatcher steering you to the same broker every time may be paid by that broker.
They won't show you the rate con
You should see every rate confirmation for every load you haul.
ONE LOAD, FOLLOWED
Where every dollar goes
An example with round numbers. A shipper pays a broker $2,000 to move a van load. The broker offers it to carriers at $1,650. With a dispatcher on the carrier's side, here is what happens to the money.
- 01
Shipper pays the broker
$2,000. The carrier never sees this number.
- 02
Broker offers the load
$1,650. The $350 gap is the broker's margin if the carrier accepts.
- 03
Dispatcher counters
We know the lane is tight this week and counter at $1,850. The broker settles at $1,780.
- 04
Rate con goes to the carrier
The carrier reads $1,780, the pickup and delivery, and signs.
- 05
Dispatcher's fee at 5%
$89, paid by the carrier. The carrier keeps $1691, more than the original $1,650 offer.
EXAMPLE NUMBERS. COUNTERS DON'T ALWAYS WIN, AND SOMETIMES THE RIGHT CALL IS TO WALK.
ASK ANY BROKER
Five questions before you haul
Whether you book yourself or through us, these are worth asking before the first load with a new broker.
How fast do you pay?
Standard terms, quick pay options and the fee for quick pay.
What is the detention policy?
Free time, hourly rate and what proof they need.
Who is the shipper's contact on site?
So problems at the dock get solved fast.
Is the load yours to broker?
A plain question that catches double brokering.
What happens if the load cancels?
Truck ordered, not used: is there a TONU and how much?
MORE ON BROKERS
Choosing brokers for van freight: dry van brokers. How brokers run power only: power only brokerage. What we charge, in full: dispatch cost.
QUESTIONS
Broker or dispatcher, answered
01What is the difference between a dispatcher and a freight broker?
A broker arranges transportation for shippers and earns the margin between what the shipper pays and what the carrier is paid. A truck dispatcher works for the carrier, finds and negotiates loads on the carrier's behalf, and is paid by the carrier, usually a percentage of the load. They sit on opposite sides of the rate.
02Does a truck dispatcher need broker authority?
Under FMCSA's 2023 guidance, a dispatch service that arranges transportation for compensation can be treated as a broker unless it acts as a bona fide agent of the carrier. A dispatcher working for the carrier under an agreement, without taking money from shippers or brokers, falls on the agent side. That is how we work. This is a summary, not legal advice.
03Who pays a truck dispatcher?
The carrier. A legitimate carrier-side dispatcher is paid only by the carrier it works for, usually as a percentage of gross. Our fee is 5% for one truck with an MC at least 6 months old. If a dispatcher is also taking money from the broker, they are on both sides of your rate.
04Can a dispatcher also be a broker?
A company can hold broker authority and also offer dispatch, but then it may be on both sides of the deal: earning a margin from the shipper and a fee from you. That conflict is why we only work for carriers and never take money from brokers or shippers.
05Is it better to work with a broker or a dispatcher?
You usually work with both. Brokers control much of the freight, so you will haul broker loads either way. A dispatcher stands between you and those brokers, negotiating on your behalf. The question is not broker or dispatcher, but whether someone on your side is doing the negotiating.
06Does a dispatcher see what the shipper paid the broker?
No. Only the broker knows both numbers. What a good dispatcher does know is the current market for the lane, so it can tell when an offer leaves too much on the broker's side and counter accordingly. That market knowledge is where most of the negotiating power comes from.
07Will brokers refuse to work with a dispatcher?
Most brokers deal with dispatchers every day and are used to it. A few prefer to talk to carriers directly, and we respect that. Because the rate con goes to you and you sign it, the broker's contract is always with your company, not with us.
08Do I need a broker if I have a dispatcher?
Usually yes, because brokers hold so much of the freight. A dispatcher doesn't replace brokers; it negotiates with them and finds the good ones. Some carriers also haul direct for shippers, and a dispatcher can help you build those relationships over time.
09How do I know if a broker is legitimate?
Check their broker authority and contact details on FMCSA's records, look at their credit and days-to-pay, and be wary of look-alike email addresses. We do all of this before booking you, because fake brokers and double brokering target small carriers.
10Who signs the rate confirmation?
The carrier. The broker issues the rate confirmation for the load; with us, it goes straight to you, and you sign it or decline it. We negotiate the terms but never sign for you.
ONLY PAID BY YOU
Get a dispatcher on your side
We never take money from brokers or shippers. Apply in two minutes, and every rate con comes to you to sign or decline.