Lesson objective
Practice five stages of a dispatch-service transaction. All carrier, broker, and load details are fictional. This is education, not a real booking, legal agreement, or invoice.
- Confirm the carrier relationship. Obtain a written dispatch service agreement defining services, authorized activities, fees, payment terms, and cancellation.
- Review the load. Confirm pickup, delivery, equipment, cargo, appointment times, carrier authority and insurance, and the carrier's rate requirements.
- Obtain carrier approval. The carrier authorizes the load terms. Follow lawful dispatch practices and avoid operating as an unlicensed freight broker.
- Document the booking. Keep the broker's rate confirmation, carrier approval, and shipment records.
- Calculate and invoice. Apply the agreed commission only to the defined revenue amount, and invoice according to the agreement.
Simulated dispatch transaction
Carrier: Sample Highway Transport LLC (fictional)
Equipment: 26-ft box truck
Lane: Kansas City, MO → Omaha, NE
Gross freight rate: $2,500
Agreed dispatch fee: 8% of gross freight rate
Example payment term: 7 days after carrier receives freight payment (only if written in the signed agreement)
Dispatch fee = $2,500 × 0.08 = $200 before expenses and taxes.
Practice lab: Create a sample invoice
For training only. A real invoice needs your business details, correct dates, and your actual signed agreement.
Knowledge check
1. Can a dispatcher charge any percentage they want?
Parties may negotiate lawful fees. They must agree on the rate and its calculation. A fee percentage alone does not determine broker-authority requirements.
2. Does a $2,500 load mean the dispatcher earns $2,500?
No. At 8%, the dispatch service's gross revenue is $200.
3. What should happen before booking loads?
Verify the carrier relationship and agreement, authority, instructions, load details, and obtain approval.
4. When should the carrier pay the dispatcher?
According to the signed agreement. The seven-day example is not a universal rule.
Compliance note
FMCSA distinguishes bona fide agents of motor carriers from brokers based on the actual relationship and activities. A written carrier agreement does not automatically exempt a dispatcher from broker authority. Review 49 CFR 371.2 and seek qualified legal advice about your business model.