How do you dispatch trucks?
Any person who is interested in learning how to dispatch trucks from home can rest assured that this guide will help you to get started on the right track. Understanding how to dispatch trucks from home will lead you into possible lucrative positions within the trucking industry. Most all well organized and knowledgeable truck dispatchers create a lucrative truck dispatch business quite quickly under the right conditions. Below is more information on how you can get started on learning how to dispatch trucks from home.
Step 1. Obtain Proper Truck Dispatch Training
If you are researching truck dispatch training because you are convinced you to want to learn how to dispatch trucks and your goal is to start a truck dispatch business then a trucking dispatcher training course is in your future. To be successful in the truck dispatching business, knowledge is critical. There are key components you will want to learn and each of these is based upon your knowledge and skills when it comes to dispatching trucks and more so on how to build a trucking company's business thru your trucking dispatch services.
Understanding what trucking companies need based upon freight procurement, the guidelines trucking companies operate under the FMCSA Regulations, and freight availability within their regions are just a very few of the many things you need to grasp when it comes to learning how to dispatch trucks from home. There is also the basic need to understand what a trucking company goes thru daily to monetize their trucking equipment and how your truck dispatching skills adversely affect this.
Obtaining the right truck dispatch training course from a company that has been in the truck dispatch business and can offer you the right information based on their skills and services will be your best option. Logistical Forwarding Solutions is situated to not only give you the best truck dispatch training course but also help you with truck dispatching job placement.
Step 2. Join A Freight Brokerage And Become A Freight Broker Agent
Title 49 CFR371 Code of Federal Regulations states clearly that anyone who is soliciting Motor Carriers and is involved within the movement of freight load who is receiving compensation must have a Property Brokers License. For this reason, if you plan on learning how to dispatch trucks from home, you are also going to need to be part of a freight broker firm so you fall under compliance with the FMCSA regulations.
Being a truck dispatcher also means you will want to solicit motor carriers for hire, who would be interested in your skills and services as a truck dispatcher. You will also be charging the carrier for your trucking dispatch services and this means you would be receiving compensation for the movement of freight and also part of the arrangement of freight with a motor carrier. These services are considered non-broker services but the FMCSA strictly states that all non-broker services are to be provided by a broker.
You must obtain and understand the right knowledge when it comes to learning how to dispatch trucks from home and this knowledge is derived from the FMCSA regulations.
Here is more information obtained from the FMCSA CFR 371 about working with a motor carrier as a 3rd party individual. As you can see on 371.2 definitions that non-brokerage services which is what a truck dispatcher would be performing, is to be done by brokers. for this reason, when you start off learning how to dispatch trucks, you want to also start with a freight brokerage company and become a freight broker agent. This will allow you to perform non-brokerage services and create your dispatcher business to start legally under the FMCSA guidelines.
§ 371.2 Definitions.
(a) Broker means a person who, for compensation, arranges, or offers to arrange, the transportation of property by an authorized motor carrier. Motor carriers, or persons who are employees or bona fide agents of carriers, are not brokers within the meaning of this section when they arrange or offer to arrange the transportation of shipments that they are authorized to transport and which they have accepted and legally bound themselves to transport.
(b) Bona fide agents are persons who are part of the normal organization of a motor carrier and perform duties under the carrier's directions pursuant to a preexisting agreement that provides for a continuing relationship, precluding the exercise of discretion on the part of the agent in allocating traffic between the carrier and others.
(c) Brokerage or brokerage service is the arranging of transportation or the physical movement of a motor vehicle or of property. It can be performed on behalf of a motor carrier, consignor, or consignee.
(d) Non-brokerage service is all other services performed by a broker on behalf of a motor carrier, consignor, or consignee.
§ 371.3 Records to be kept by brokers.
(a) A broker shall keep a record of each transaction. For purposes of this section, brokers may keep master lists of consignors and the address and registration number of the carrier, rather than repeating this information for each transaction. The record shall show:
(1) The name and address of the consignor;
(2) The name, address, and registration number of the originating motor carrier;
(3) The bill of lading or freight bill number;
(4) The amount of compensation received by the broker for the brokerage service performed and the name of the payer;
(5) A description of any non-brokerage service performed in connection with each shipment or other activity, the amount of compensation received for the service, and the name of the payer; and
(6) The amount of any freight charges collected by the broker and the date of payment to the carrier.
(b) Brokers shall keep the records required by this section for a period of three years.
(c) Each party to a brokered transaction has the right to review the record of the transaction required to be kept by these rules.
§ 371.7 Misrepresentation.
(a) A broker shall not perform or offer to perform any brokerage service (including advertising), in any name other than that in which its registration is issued.
(b) A broker shall not, directly or indirectly, represent its operations to be that of a carrier. Any advertising shall show the broker status of the operation.
§ 371.9 Rebating and compensation.
(a) A broker shall not charge or receive compensation from a motor carrier for brokerage service where:
(1) The broker owns or has a material beneficial interest in the shipment or
(2) The broker is able to exercise control over the shipment because the broker owns the shipper, the shipper owns the broker, or there is common ownership of the two.
(b) A broker shall not give or offer to give anything of value to any shipper, consignor or consignee (or their officers or employees) except inexpensive advertising items given for promotional purposes.
§ 371.10 Duties and obligations of brokers.
Where the broker acts on behalf of a person bound by law or the FMCSA regulation as to the transmittal of bills or payments, the broker must also abide by the law or regulations which apply to that person.
§ 371.13 Accounting
Each broker who engages in any other business shall maintain accounts so that the revenues and expenses relating to the brokerage portion of its business are segregated from its other activities. Expenses that are common shall be allocated on an equitable basis; however, the broker must be prepared to explain the basis for the allocation.1. Get the necessary training: this business is best suited for someone who already has experience in dispatch trucking. If you do not have experience in this field, then you will need to get training.
Step 3. Be Available to know how to dispatch trucks 6 Hours A Day
Many people who are wanting to know how you dispatch trucks sometimes often do not learn that the truck dispatcher business is a full-time job. Most people often think about the "getting their feet wet" attitude and think that possibly they can work part-time and still learn how to dispatch trucks. Unfortunately, this is not possible and I will explain why.
Motor carriers are on the road driving 11 hours a day and can work up to 14 hours daily. For this reason, your availability is mandatory for any arising issues they might face while on the road and having been dispatched by you. A truck dispatcher needs to be on standby and available at any moment. There are times that you might receive a call at 11:00 at night because your motor carrier is at the shipper's dock and for some reason the pickup number of the load is wrong and they can not get loaded. Learning how you dispatch trucks is not just about regulations or freight availability, it is also about you being able to set up a work ethic that is conducive for your motor carrier. Every truck dispatcher knows that in most cases the loads you dispatch out can run smoothly, or in some cases can have major delays due to many factors. Some of these dispatch delays can be from:
Wrong Load information
Truck Mechanical Failure
Delay On Getting Loaded
Delay On Being Unloaded
Weather Conditions
Traffic Conditions
Late Delivery
For these reasons when you learn how to dispatch trucks, you're also learning how to adapt to the lifestyle that allows you to be able to be available at any time. This is just part of the trucking dispatch business and you must decide if this is something you can commit to. In most cases, a true truck dispatcher can do their job daily within a few hours and at the same time be on standby and available to administer "Check Calls" with your carriers. The check-call is when a truck dispatcher reaches out to their carrier with an update on the load. This load information is then relayed back to the broker for whom you booked the load from. Check calls and other duties can usually be performed by committing 4-6 hours daily and also being on standby for the rest of the day. As you can tell now learning how to dispatch trucks does involve a person with a strong work ethic and the ability to learn logistics.
Step 4. Learn Truck Dispatching Software
Learning how to dispatch trucks from home is also going to push you into learning TMS Software (transportation Management Software). There are many different types of Trucking Dispatch Software and you will need to find one that best fits your technical abilities to utilize a truck dispatcher software. Also in some cases, your carrier might already be using a TMS and you will want to be able to learn the TMS software to complete a load dispatch correctly.
The purpose of the TMS software for learning how to dispatch trucks is to be able to manage the load being moved from the beginning until the end. Also, the FMCSA demands a record-keeping of all details about the load you dispatch. The TMS software creates a foundation for not only record keeping and being compliant with the FMCSA, but it also allows the Truck Dispatcher to keep all records of the load such as:
Rate Confirmation's
BOL's
Delivery Receipts
Lumper Fees
IFTA/IRP
Fuel Receipts
Map Routing
Load Numbers
The TMS is the heart of the operations for the truck dispatcher and when you enroll in a training course that teaches you how to dispatch trucks from home, you will probably be referred to a good TMS to start with. You can also contact Logistical Forwarding Solutions and we will be happy to refer you to a few good Truck Dispatch Software providers.
Step 5. Plan Your Truck Dispatching Ahead And Coordinate With Your Motor Carrier
Knowing how to dispatch a truck is critical and by now I'm sure you are aware of it. If you enroll in a great truck dispatch training course then you will be taught also while you are working and learning how to dispatch trucks from home that you MUST always be prepared ahead. A true truck dispatcher is a person who is proactive about what happens tomorrow while Dispatching trucks today. I will give you an idea below of just what happens daily while you dispatch trucks and the important details that every truck dispatcher is dealing with while multitasking.
Below is an outline of what a truck dispatcher will do during their daily job while working from home.
Truck dispatchers work early morning and are confirming load availability with multiple brokers and also searching to pick up the availability of loads for the next day once the load is delivered. This also allows catching new loads daily coming in from brokers and load boards.
A truck dispatcher will also be confirming the hours of service and how many hours their motor carrier can drive before resetting.
Truck dispatchers always pre-plan the routes so that the loads they dispatch from the broker to the carrier connect and make sense for monetizing the truck and making the most income for the week.
Truck dispatchers input the loads they are dispatching into their truck dispatch software and then pass the load over to their carriers. This is what we call truck dispatch services. The loads are input into a TMS and sent to the carrier for pick-up and drop-off instructions.
Truck dispatchers must follow the load movement and perform check calls on all loads that have been dispatched to the carrier.
Truck Dispatchers help carriers to collect detention if owed and also any rising concerns that may pertain to the load movement.
Truck dispatchers perform freight research daily and are continuously trying to create better freight lanes with less deadhead and better profits. This is done by contacting brokers daily and offering truck dispatch services for both the broker and the carrier.
Truck Dispatchers collect the load documents once their truck dispatch loads are finished and input these documents into the TMS so that the carriers can send over the load documents to their factoring companies and get paid on time.
Truck Dispatchers are working daily on networking with others carriers who are pulling the same type of trailers as they are already working with prior. This allows truck dispatchers to build a larger carrier capacity and also allows them to eventually approach a shipper as a broker themselves and puts their carriers into a direct position that pays more for all parties involved.
Truck Dispatchers must allot time during their daily routine to always be on standby for any issues that might arise during the movement of the load.
Truck dispatchers must be patient and understanding of their motor carriers. Truck dispatchers learn that carriers are in unique situations while being away from home and traveling on the roads and for this, unique circumstances might arise. Patience and understanding are important when learning how to dispatch trucks.
Step 6. Understand Trucking Dispatch Hours Of Service
When learning how to dispatch trucks you must also understand that every load you book and dispatch to your carrier is based upon their HOS(Hours Of Service) rules. Every truck dispatcher must know that all carriers can only drive 11 hours a day and work only 14 hours a day and have 10-hour breaks before repeating this. Also, truck dispatchers who are learning how to dispatch trucks must know that after 70 hours of work during an 8-day work period the motor carrier will need to stop and reset their HOS with a 34-hour break.
The HOS is critical for learning how to dispatch trucks and you can not make mistakes with this. If you book loads not properly planned and your carriers are held up with being loaded late on other loads, then the HOS rules might prevent you from being able to pick up loads previously scheduled. The result is you will have to cancel loads and this puts your carrier into a bad situation with brokers, therefore putting you in a bad situation with your carrier. Learning how to dispatch trucks and getting the right truck dispatch training should be the top priority for anyone who wants to be a professional truck dispatcher.
Step 7. Work With Factoring Companies
Working daily and learning how do you dispatch trucks you will find out quickly getting paid is also a top priority. Logistical Forwarding Solutions teaches this important factor in their truck dispatcher training course. Working with your carrier allows you to also work with their factoring company. You are submitting the load documents, invoices on the freight load, and your invoice to the carrier for truck dispatching services. The factoring companies might also if impressed with your truck dispatch skills refer more carriers for you to perform truck dispatching for. Factoring companies buy your carrier's load invoices and advance your carrier upfront for the money owed by the freight broker. Learning how to dispatch trucks will also give you the knowledge of how to build relationships with factoring companies and receive carrier referrals from them. Learn more about Freight Factoring.
As you can see the daily life of a truck dispatcher is interesting and at times can be somewhat perplexing. The daily job duties of a truck dispatcher keep them busy while they help carriers to monetize their trucks while staying compliant with the FMCSA. Learning how to dispatch trucks from home truly is fascinating and finding the right truck dispatch training course is going to be a critical decision when you are choosing how to dispatch trucks.