WTF is a "Dispatch Service" ???

Michael Ludwig

Michael Ludwig

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Jul 6, 2009
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New name for scumbag load broker?
Who would ever use such a service, and what possible advantage could there be to using one?
 
I drive the truck with my name on the door, and you as the 'dispatch service' find and book me loads.

That way I don't have to watch the load board while I'm going down the road with my feet on the dash while I'm watching a movie!
 
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Its really popular in the states and I've come across a few carriers that use it here as well. Its basically a dispatcher that represents your company to the brokers/shippers. They get a % of the gross rev or a pre-determined fee. I can see the appeal for O/O's since they are on the road, they just have someone to make sure loads are booked and the wheels are turning. The grey area is when you are giving them loads to haul, you have to vet the companies individually and make sure all of them are on the up and up. We had it happen once where we brokered a move that was assigned to Carrier A by the dispatch service. Carrier A was stuck at a previous delivery so dispatch service put the load on Carrier B and didn't tell us. Luckily Carrier B was in good standing as well so it was ok. Ultimately the shipment was delivered and the parties involved were paid and satisfied...but still feels like somethings off.

Trucking companies are just going to get fragmented at this point, where the driver is "INC" the dispatcher is "INC" the HR and recruitment is "INC", book keeping and accounts are "INC"....
 
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tasuinam said:
That;s good - now there are so many scammer dispatch services / they keep calling us and spamming our inbox... some stories where they use carriers MC# to book loads for shady carriers and then steal the $$$$
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Yea, that's the kind of vibe I'm getting as well.
 
I remember the ladies in Sunderland too. And don't forget the infamous Sheldon was basically doing that too, just he wasn't 'kosher' about it - pun intended.

Also, I don't know if they're still around but In-House Freight Services was basically this model but on the shipper side rather than representing the driver.

It lets one essentially run owner-operators without using their own authority, insurance etc.
 
There are a few good ones out there for sure. Umair Alvi and Tim Matheson come to mind. They are essentially partnering brokers up with good carriers and, as stated above, they have built-in back up plans if things go south for the original carrier they hooked you up with.
 
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From a brokers perspective, using a “dispatch service” does require a leap of faith. As others have said, you rely on the services ability to properly vet their carriers. Like in any double brokering scheme, the original broker loses a large degree of control over his customers freight, having to deal through a third party to get information. What happens if there is a dispute between the dispatch service and the actual carrier over payment, whether it is pertaining to your load or another? Keep in mind that similar to a double brokering situation, the actual carrier is receiving a watered down rate. If the carrier doesn’t get paid he is completely within his rights to approach your customer for payment in spite of the fact that you have paid the service. I am sure there are some above board, well run dispatch services out there, just be aware of some of the potential problems that could arise.
 
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But that is not how it works. In our case, when we use these guys, they send us all of the paperwork/details of the carrier they gave us and we then deal directly with that carrier re: payment, etc. Honestly, with both Umair and Tim, we have never had any issues and we now have a few dozen new carriers we deal with (through them mind you). But as far as actual dispatching/paying of the loads, it's broker-carrier relationship.
 
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Mike1710 said:
But that is not how it works. In our case, when we use these guys, they send us all of the paperwork/details of the carrier they gave us and we then deal directly with that carrier re: payment, etc. Honestly, with both Umair and Tim, we have never had any issues and we now have a few dozen new carriers we deal with (through them mind you). But as far as actual dispatching/paying of the loads, it's broker-carrier relationship.
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Certainly in a case where the broker deals directly, including payment, with the actual carrier, there could be some mutual benefits. If the dispatch service is acting simply as a referral service or introduction service, the potential for problems is reduced. I would still recommend reviewing and verifying the carriers documentation however, for your own peace of mind,
 
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loaders said:
What happens if there is a dispute between the dispatch service and the actual carrier over payment
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We had this happen, where the carrier then called us to negotiate the rate after we had agreed with the "dispatch service" and the freight was picked up. It was resolved with all parties happy with the result, but I would say its not much different from a carrier working directly with a broker and doing the same thing. There are pros and cons to this format: O/O's get to keep their wheels turning and have a dedicated service to keep the loads coming, but that's the thing at the end of the day each O/O is their own individual company and they don't really have to be held accountable to anything. Sure the dispatch service can recover your late pick up with another carrier but you still have to VET the carrier yourself which takes time while your freight is on the dock and your customer hounding you for answers. Then there's potentially getting involved in disputes between the carrier and the dispatch service with your customers freight held in limbo. At then end of the day its really just boils down to your comfort level, and your relationship with the parties involved. It wouldn't be our first choice in moving freight if we needed but I wouldn't dismiss the service entirely either.
 
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btw forgot to mention that it opens your customers up for back-solicitation too...since you really don't know which carrier has now approached your customer when you have carrier A, B and C recovering a pick up lol.
 
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You don’t want to knowingly put yourself into a position where your customers’s freight can be used as leverage (held hostage, delayed delivery, etc.) by an unrelated party in the settlement of dispute.
 
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