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This question is about what a freight broker does, what a dispatcher does, and freight broker.
Freight Broker vs. Dispatcher
A freight broker is someone who coordinates the connection of freight shipments between shippers and carriers, while a dispatcher is an employee of a freight carrier.
A freight broker connects with multiple carriers, and can often negotiate better rates for the shippers. With multiple clients and higher shipping volume, brokers have more bargaining power than an individual business with only a few regular clients. They can handle international movements, but these movements are usually in one specific area.
A dispatcher works for a freight carrier and handles the receipt and transmission of information about the location of cargo on the road or at sea. The dispatcher may be employed by a carrier or contracted by them. They bridge the gap between the customers and the employees handling their cargo.
Here are the key differences between a freight broker and a dispatcher:
Dispatchers represent the carriers and receive a percentage of the carrier's rates for duties performed
The goal of a freight broker is to grow their business by matching shipping clients with carrier companies
Dispatchers are not licensed or regulated
Brokers are licensed and regulated
Brokers invoice the shipper and pay the carrier
Dispatchers work directly for the carrier
Dispatchers do a lot of administrative duties for the carrier company they work for
Brokers' jobs are broader in scope
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