Freight Broker vs Carrier vs Dispatcher: Who Does What?
A freight broker arranges transportation between shippers and carriers and earns the margin between the shipper rate and the carrier rate. A carrier owns the trucks, employs the drivers and physically hauls the freight. A dispatcher works on behalf of a carrier, finding and coordinating loads for that carrier's trucks, and is paid by the carrier as salary, a per-load fee or a percentage. Licensing, authority and insurance requirements vary by jurisdiction and change over time.
- Shipper owns the goods and pays for transport
- Broker arranges the move as an intermediary and keeps the margin
- Carrier hauls the freight and carries the operating and cargo risk
- Dispatcher coordinates loads for the carrier and is paid by the carrier
- Verify broker and carrier authority requirements with the relevant regulator
The same load from three seats
The broker sees a shipper paying $3,200 and needs to cover the load below that while protecting the shipper relationship. The carrier sees $2,750 for 900 all-in miles, or $3.06 per mile, and asks whether that covers fuel, driver pay, insurance and the truck payment for the days consumed. The dispatcher asks which truck is closest, whether the driver has the hours, whether the delivery market reloads, and what the paperwork requires.
Common misunderstandings
The roles are frequently conflated, which creates compliance and commercial risk.
- Assuming dispatcher and broker are the same job
- Re-brokering freight without the authority to do so
- Assuming the broker keeps the entire shipper rate
- Forgetting the carrier carries equipment, driver, fuel and payment-term risk
- Ignoring broker credit and payment timing
Frequently asked questions
What is the difference between a freight broker and a dispatcher?
A broker arranges transportation as an intermediary between shippers and carriers and earns the margin between the two rates. A dispatcher works on behalf of a carrier, coordinating loads for that carrier's trucks, and is paid by the carrier.
Does a truck dispatcher need broker authority?
A dispatcher representing a carrier is generally not brokering freight, but registration, bonding and insurance rules differ by jurisdiction and change over time, so current requirements should be confirmed with the relevant regulator.
Who carries the risk on a load?
The carrier hauls the freight and carries the operating and cargo risk, the broker carries contractual responsibility for arranging the move, and the dispatcher coordinates on the carrier's behalf.
Practise this inside EK Virtual Dispatch Company
EK Virtual Dispatch Company is the dispatch simulator built by EK Dispatch Academy, the training provider operated by EK Freight Lines Inc.
- What is a truck dispatch simulator?
- How to practice booking your first truck load
- Truck dispatcher rate negotiation practice
- Deadhead, RPM and load profitability explained
- Hours of service practice for dispatchers
- Backhaul planning for dispatchers
- Realistic truck dispatch problems and responses
- Inside the final practical dispatch exam