Categories
Newbies

A Day in the Life of a Truck Dispatcher: Inside the Trucking Industry

The trucking industry keeps goods moving across the country, and at its core is the truck dispatcher—a role that’s equal parts strategist, negotiator, and problem-solver. In this blog post, we dive into the daily operations of Anis, the owner and dispatcher of a small trucking company with four trucks (two company trucks and two owner-operators). With nearly a decade of driving experience and eight years running his business, Anis shares a firsthand account of a dispatcher’s day, offering practical insights and strategies for success in this fast-paced industry.

Early Mornings: Chasing Loads

For dispatchers, the day often starts early—around 7 a.m. for Anis, who’s based on the East Coast. The 7-10 a.m. window is prime time for booking loads, as brokers post fresh freight on load boards like DAT, which Anis calls “the mother of all load boards” for its dominance in the industry. He uses a Google Sheets spreadsheet to track his trucks’ locations and prioritize which ones need loads, a modern take on the traditional whiteboard that enables real-time updates.

Anis posts truck availability on DAT, specifying details like origin, destination, weight, and a pickup radius of 100-150 miles. He filters for full loads (partial loads are trickier) and prefers lighter freight (e.g., 13,000 lbs) to reduce fuel costs and wear on trucks. The DAT board provides critical details—pickup/delivery times, mileage, and broker comments—that guide his decisions.

Negotiating Rates and Vetting Brokers

Once a promising load catches his eye, Anis contacts the broker to confirm details and negotiate rates. For instance, he recently discussed a load from Grand Rapids, MI to Warners, NY, posted at $2560. He requested $2800, settled at $2700 after a quick check with his driver, and locked in the deal. This back-and-forth showcases the dispatcher’s role in balancing revenue and practicality.

Working with a new broker requires a setup packet with legal documents, including insurance, permits, and references. Anis uses Broker Credit Checks, a free online tool, to review a broker’s payment history and avoid those with red flags, like being on factoring companies’ “no buy” lists. After approval, he signs the rate confirmation (the load’s contract), dispatches the driver, and shifts focus to the next task.

Key Tip: Always vet new brokers with tools like Broker Credit Checks to protect cash flow and minimize payment risks.

Ensuring Payment: Invoicing and Factoring

Getting paid starts with proper documentation. Drivers send Anis the signed Bill of Lading (BOL) via text or email, which he scans into a PDF using apps like Cam Scanner. To invoice a broker, he submits the invoice, rate confirmation, BOL, and any receipts for additional fees, such as lumper fees for unloading. Daily invoicing—for four trucks, that’s potentially four invoices in about 20 minutes—prevents paperwork backlogs and accelerates payments.

Anis also navigates the factoring decision: selling invoices to a third party for immediate cash. Factoring ensures quick funds for fuel, payroll, and maintenance, critical for small or new companies. However, it carries fees (1-3% per invoice), loss of invoice control, and potential chargebacks if a broker doesn’t pay. Non-factoring means waiting 15-60 days for full payment but requires significant cash reserves—Anis estimates $20,000 per truck. Factoring contracts can also lock companies in for a year, and switching providers is complex.

Insight: Factoring boosts cash flow but eats into profits. Non-factoring preserves revenue but demands financial discipline.

Supporting Drivers on the Road

Anis is the lifeline for his drivers, helping with everything from locating pickup sites to resolving paperwork issues. Drivers keep him updated via text, sending BOLs or confirming deliveries. For owner-operators under his authority, Anis handles dispatching, payments, and liabilities, taking 10-30% of the load’s pay while guaranteeing their 70-90% share, even if a broker delays. This reliability lets drivers focus on safe driving.

Conclusion: The Dispatcher’s Crucial Role

A truck dispatcher’s day, as Anis’s experience shows, is a dynamic blend of load hunting, rate negotiation, broker vetting, driver support, and payment management. It’s a role that demands adaptability, attention to detail, and a deep grasp of logistics. For small operations, where the dispatcher might also handle payroll and admin tasks, the stakes are even higher.

By mastering load boards, building broker relationships, ensuring timely invoicing, and weighing options like factoring, dispatchers keep trucks utilized and cash flowing. This behind-the-scenes look offers valuable lessons for anyone in or curious about the trucking industry. Whether you’re a seasoned dispatcher or just starting out, understanding these daily challenges and strategies can sharpen your approach and drive efficiency.

What other aspects of truck dispatching are you curious about? Share your thoughts or questions below, and stay tuned for more insights into the world of trucking!

Check out our free guide!