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Originally Posted On: https://www.learndispatch.com/truck-dispatchers-and-direct-shippers/
Can Truck Dispatchers Work with Direct Shippers?
Hey there, fellow truck dispatching enthusiasts! Today, we’re diving into a question that pops up quite often in our world: Can truck dispatchers work with direct shippers? It’s a great question, but like many things in life, the answer isn’t a simple yes or no. Let’s break it down and clarify some important points.
First things first, we need to understand what we mean by “work” in this context. It’s a key word that can make all the difference. Let’s explore a few scenarios to get a clearer picture.
Scenario 1: Load Board Postings
Sometimes, direct shippers post their loads on load boards, looking to connect directly with motor carriers. Can you, as a dispatcher, call on these loads and book them for your client? Absolutely! There’s no reason why you couldn’t. This is a perfectly legitimate way to work with direct shippers.
Scenario 2: Direct Solicitation
Now, here’s where things get a bit tricky. Let’s say you decide to go directly to a warehouse and say, “Hey, I work with some trucking clients. If you can give me some shipments, I could get them moved for you.” And let’s imagine you even collect payments for these shipments. If you don’t have a freight broker license, you’re treading in dangerous waters. This kind of direct solicitation without proper licensing is illegal and can land you in hot water. So, steer clear of this approach!
Scenario 3: Acting on Behalf of a Motor Carrier
Here’s an interesting scenario: What if you’re working for a client (let’s call them ABC Trucking), and they want you to act as their salesperson? They ask you to call local warehouses and let them know that ABC Trucking has five trucks available locally to move cargo. In this case, if you’re clearly acting on behalf of ABC Trucking and saying, “I’m with ABC Trucking, and we can move your cargo,” you’re in the clear. Why? Because the relationship will be between the shipper and the motor carrier (ABC Trucking). You’re just an employee or contractor assisting with the process.
The Key Distinction
It’s crucial to differentiate between these scenarios. You can’t go around soliciting shippers for loads on your own. But if you’re acting on behalf of a client (a motor carrier) who needs your assistance, and you’re essentially functioning as part of that motor carrier’s team, that’s a different story. Motor carriers can go directly to shippers, potentially eliminating the need for a freight broker and their associated fees.
A Word of Caution
Now, your clients might be asking about working with direct shippers because they assume it’ll lead to more money by cutting out the freight broker. While this can be true in some cases, it’s not a guarantee. Here’s why:
- Shippers who bypass freight brokers are often trying to pay less for cargo transport.
- These shippers might not be well-informed about current market rates.
- Without a broker’s guidance, they might offer rates that are unrealistically low.
The Bottom Line
Let’s sum it up:
- If you’re trying to solicit shippers on your own without a freight broker license, that’s a problem.
- If you’re working with direct shippers on behalf of a motor carrier, as their contractor or employee, you should be in the clear because you’re not directly party to the transaction.
Remember, as a dispatcher, your role is to facilitate and support, not to act as an unlicensed broker. Always make sure you’re operating within the boundaries of your role and the law.
I hope this clears up some of the confusion around truck dispatchers working with direct shippers. If you’ve got more questions, don’t hesitate to ask. Keep on truckin’, and I’ll catch you in the next post!
Copyright by Roman Shmundyak July 2024
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