The trucking industry is the backbone of commerce, and dispatchers are at the heart of keeping freight moving smoothly. Whether you want to become an independent dispatcher or you're looking to streamline your dispatch services, understanding Lean principles and effective dispatch techniques is crucial. This blog will walk you through the essential steps to becoming an independent truck dispatcher and applying lean methodologies to optimize your services.
What is Dispatch?
Dispatch refers to the process of sending goods, services, or personnel to a specific destination or task. In logistics and transportation, dispatch typically involves coordinating the movement of vehicles, ensuring deliveries are made on time, and managing any necessary communication between drivers and clients.
What is a Truck Dispatcher?
A truck dispatcher is a professional responsible for managing the scheduling and coordination of freight for trucking companies or independent truck drivers. The truck dispatcher ensures that loads are assigned to drivers, monitors their progress throughout the route, and assists with any issues such as finding parking or handling paperwork. They also negotiate rates with brokers, provide ongoing support to drivers, and manage administrative tasks like invoicing. In essence, they are the backbone of the trucking operations, ensuring timely deliveries and efficient logistics.
Step-by-Step Guide: What a Dispatcher Does and Their Duties
1. Understand the Truck Driver’s Nature and Equipment
The first responsibility of a dispatcher is to understand the driver’s setup and preferences. This involves gathering detailed information about the truck and the driver’s capabilities:
- Truck Type: Identify the kind of truck the driver operates, whether it’s power only, dry van, reefer (refrigerated truck), box truck, flatbed, or step deck. Each truck type is suitable for different kinds of loads, and knowing the equipment is crucial for finding appropriate loads.
- Weight Capacity: Determine how much weight the truck can haul. Different trucks have different weight limits, and some loads require specific capacities.
- Preferred Routes: Ask the driver whether they are willing to cover long-haul routes across the U.S. (Over The Road (OTR)) or prefer to stay local. This helps in planning their workload accordingly.
- Trailer Specifications: Understand whether the driver’s trailer is food-grade, vented, or has other specifications like vertical e-straps or horizontal e-straps. Ask how many straps, binders, or tarps the driver has to secure their loads properly.
- Electronic Logging Device (ELD): Find out which ELD device the driver uses to stay compliant with Hours of Service (HOS) regulations.
- Home Time Preferences: Learn when the driver prefers to go home. Some drivers prefer to return every week, while others may stay on the road for a month. This helps in planning the routes and finding loads that align with their availability.
2. Find the Right Loads Based on the Driver’s Setup
Once the dispatcher understands the driver’s equipment and preferences, the next step is finding suitable loads that match these factors:
- Market Research: The dispatcher continuously monitors the load boards and other sources for good-paying loads that match the truck’s capacity and equipment.
- Weight and Equipment Compatibility: Make sure the load is within the weight limit and suitable for the truck's specific type. For example, a reefer will be needed for temperature-sensitive goods, while a flatbed may be required for oversized loads.
3. Negotiate Rates with Brokers
One of the most critical duties of a dispatcher is rate negotiation:
- Good Gross Earnings: The dispatcher works on getting the best rate per mile for the driver to ensure they make good gross earnings.
- Broker Communication: Dispatchers liaise with brokers to discuss the terms of the load and negotiate rates, aiming to secure the best possible deal for the driver. This is key to maintaining profitability while keeping the driver busy with consistent loads.
4. Plan and Organize the Driver’s Schedule
Dispatchers must also plan when and where the driver will be working:
- Route Optimization: Based on the driver’s preferences (OTR or local), dispatchers plan the most efficient routes to save time and fuel while ensuring legal compliance with Hours of Service (HOS) regulations.
- 24/7 Availability: Truck dispatchers provide 24/7 dispatch services, ensuring they are always available to assist with any route changes, unexpected delays, or emergencies.
5. Handle Paperwork and Administrative Tasks
Dispatchers take care of all the administrative tasks related to trucking:
- Handling Paperwork: Completing all necessary paperwork for loads, including Bill of Lading (BOL), invoices, and ensuring compliance with regulations.
- Factoring and Quick Pay: Submitting invoices for factoring or quick pay to make sure drivers get paid faster and consistently.
6. Driver Support and Assistance
Lastly, dispatchers provide ongoing support throughout the trip:- Problem Solving: Whether it's finding truck stops, parking spots, or providing assistance with repairs, the dispatcher is the driver’s go-to resource on the road.
- Driver/Carrier Assistance: Offer help with any driver or carrier issues, ensuring smooth operations without disruptions.
Deciding Your Trucking Segment: Understanding the Types of Semi-Trucks
Before diving into the world of truck dispatching, the first and most crucial step is to decide which trucking segment you want to specialize in. There are over 20 different truck types, each with specific uses and load requirements. In this guide, we'll focus on the most common types of semi-trucks that you'll encounter, which include Dry Van, Reefer, Flatbed/Step Deck, and Power Only (PO) trucks.Here’s a breakdown of each type:
Power Only (PO) Trucks
-
Day Cab and Sleeper:
- Day Cab: These trucks do not have sleeping areas and are typically used for short hauls.
- Sleeper Cab: These trucks come with a sleeping compartment, making them suitable for long-haul operations.
How to Dispatch Power Only (PO) Loads: Understanding the Three Types of PO Loads
Dispatching Power Only (PO) trucks requires a clear understanding of the types of loads available. A Power Only truck involves dispatching just the tractor (truck) without a trailer, and you’ll be moving various trailers based on the load requirements. There are three main types of loads for PO dispatching: Loadout Trailer, Loaded Trailer, and Empty Trailer.
1. Loadout Trailer
A loadout trailer is a great option if your driver has a trailer interchange insurance coverage of more than $50,000. This type of load allows the driver to use a company’s trailer for 1-2 weeks for free, based on the company’s capacity. Some companies will even pay you between $50 to $300 for utilizing their trailer.
Here’s how it works:
- Pick up the trailer from the specified location.
- Use the trailer for your own loads during the agreed period.
- After the time period, return the trailer to the designated location as instructed by the broker.
Dispatching loadout trailers allows for flexibility, as you can use the trailer for your own loads and make money from it before returning it.
2. Loaded Trailer
In this type, the driver is dispatched to pick up a pre-loaded trailer and deliver it to the destination. The trailer can be of any type, such as Dry Van (DV), Reefer (RF), Flatbed (FB), Step Deck (SD) etc.
How it works:
- Pick up the loaded trailer from the shipper’s location.
- Deliver the load to the specified drop-off point.
This type of load is more straightforward, as the trailer is already loaded and ready for transportation, making the process quick and efficient.
3. Empty Trailer (Pick and Drop)
In the empty trailer dispatch scenario, the driver is responsible for picking up an empty trailer and delivering it to a specific location.
Here’s how it works:
- Pick up the empty trailer from the shipper or terminal.
- Drop it off at the destination location, usually for the purpose of relocation or preparing for future loads.
This type of PO load involves minimal handling, as the trailer is empty and simply needs to be moved from one location to another.
Dry Van Trucks
The most commonly used truck in freight transport. Dry vans are enclosed trailers that protect goods from the elements.They are ideal for carrying non-perishable goods such as electronics, clothing, furniture, and building materials.
For Dry Van (DV) trailers, it's crucial to know the specific details about the trailer, as this affects the type of loads it can haul and the markets it can serve. While the maximum legal weight a Dry Van can typically carry is 45,000 pounds, there are additional factors to consider:
-
Trailer Doors: Is the trailer equipped with swing doors or roll-up doors? Swing doors provide better cargo security, while roll-up doors allow for easier access in tight spaces.
-
Lift Gate: Does the trailer have a lift gate? This is essential for loading and unloading cargo when no dock is available, especially in urban areas or locations without proper loading facilities.
-
Side Structure: Check if the trailer has aluminum bars or E-tracks along the interior sides. These are critical for securing the load and preventing shifting during transport.
-
Food Grade Trailer: Is the trailer food grade? Food-grade trailers are typically required for transporting perishable goods and must meet specific sanitary and safety standards.
Understanding these details helps dispatchers plan the load properly and ensure compliance with the shipper’s requirements.
Reefer Trucks (Refrigerated Trailers)
Reefer trucks are equipped with refrigeration units to keep goods at a set temperature.They are essential for transporting temperature-sensitive goods like food, pharmaceuticals, flowers etc.
Reefer (Refrigerated) trailers are versatile and can haul both dry goods and temperature-sensitive freight. Like dry vans, reefer trailers come with different types of doors, such as swing doors or roll-up doors. However, the key feature that sets reefers apart is their temperature-controlled system, which can adjust from +60°F to -30°F, making them suitable for transporting perishable items.
Key points to understand when dispatching reefers:
-
Temperature Control: The temperature range allows you to haul anything from frozen goods to chilled products, and even dry goods when the refrigeration system isn’t required.
-
Fuel Considerations: Running the refrigeration unit consumes additional fuel, so dispatchers must negotiate rates accordingly, factoring in the fuel costs. Loads that require lower temperatures, such as frozen products, will demand higher rates due to increased fuel consumption.
-
Extended Time Considerations: If a driver needs to keep the load for an extra day or more, the dispatcher should renegotiate the rate, factoring in the additional fuel costs and time on the road.
By understanding these details, you can effectively dispatch reefer trailers and ensure that both the driver and broker are satisfied with the arrangement.
Flatbed and Step Deck Trucks
-
Flatbed:
- These trailers have an open platform with no sides or roof, making it easy to load oversized and heavy items. Flatbeds are used for hauling large machinery, construction materials, and oversized freight.
-
Step Deck:
- Similar to a flatbed but with a lower deck height, which allows for taller cargo. Step decks can carry the same types of freight as flatbeds but are designed to transport items that exceed standard height limits.
Required Documents to Set Up with New Brokers: Step-by-Step Breakdown
When setting up with a new broker, certain documents are required to complete the carrier packet and ensure that all compliance requirements are met. Let’s go through the key documents needed and the information you'll extract from each one:
Motor Carrier (MC) Certificate:
A document issued by the FMCSA, providing the carrier’s unique MC and DOT numbers, verifying legal authority to operate as a carrier of goods.
Information to Check:
- MC Number: The unique number identifying the carrier.
- DOT Number: This ensures the carrier’s compliance with the Department of Transportation.
- Business Name: Verify the legal name of the carrier.
- Service Date: This shows how long the carrier has been in operation. The longer the MC has been active, the more credible and trustworthy the carrier is. Brokers often hesitate to work with newer MCs due to lower trust levels.
Certificate of Insurance (COI):
A document proving that the carrier has valid insurance coverage, including cargo, liability, and other necessary policies.
-
Information to Check:
- Insurance Company: The company providing coverage for the truck.
- Policy Number: Verify the active insurance policy.
- Expiry Date: Ensure the policy is valid and up to date.
-
Coverage:
- Cargo Insurance: This covers the goods being transported.
- Auto Liability Insurance: Coverage for any accidents or damage.
- Trailer Interchange Insurance: Required if using trailers that don’t belong to the carrier.
- Reefer Breakdown Insurance: Needed for refrigerated trailers.
- Certificate Holder: This is typically the broker or the party responsible for verifying the carrier's insurance.
W-9 Form:
A tax form that provides the carrier's business name, type, and EIN/SSN, used for tax identification purposes when contracting with brokers.
Information to Check:
- Business Name: Ensure it matches the name on the MC certificate.
- Business Type: Check if the company is a C Corporation, LLC, Partnership, Sole Proprietorship, etc.
- EIN or SSN: This is the business’s unique identifier for tax purposes.
Notice of Assignment (NOA):
What is Factoring?
- Purpose: This document is required if the carrier is using a factoring company to get paid faster. It allows the broker to pay the factoring company directly.
-
Information to Check:
- Company Name: The factoring company handling the payments.
- Credit Check: You need to verify that the broker is approved by the factoring company. If not, the factoring company won’t pay for the load.
Note: If the carrier does not use a factoring company, then you’ll need a Void Check. This will provide the routing number and account number for payment processing. This ensures that once the load is completed, the broker can transfer the payment directly to the driver’s account.
If you need assistance with training, company registration, dispatch services, back-office tasks, carrier-dispatcher contracts, managing account sheets, or have any questions, feel free to reach out to us at info@otrucking.com. Whether you're looking to learn how to book a load, explore the best calling software or load boards, or need a sample carrier packet for practice, we’re here to help. Contact us for further support!