The second article explains nicely the difference between a truck freight broker and a truck dispatcher.
Dispatchers work for and represent owner-operator truck drivers, trying to get loads for them at a higher price. Shippers pay the trucker, and dispatchers get a commission from the trucker.
Truck Brokers work for shippers, trying to get them a lower price. They bill the shippers and pay the truckers directly.
Currently, only brokers need to get a license from FMCSA and obtain a $75,000 bond, ostensibly to protect shippers from being paid if there is non-performance or damage. Dispatchers are not covered by the federal bonding requirement.
Dispatchers claim the additional regulation is unnecessary, but they have not been able to attract any political attention to their cause. Various approaches have been tried, including the latest one from the first article.
While the STB has been mandated by Congress to make a clear definition of a broker, there’s no timeline for that happening. Dispatchers would like to have clarity that their status is legitimate, and without a bond. They claim that by representing the trucker herself, they are definitely not brokers.
Some dispatchers may be a bit shady, perhaps overcharging truckers and not providing definitive paperwork to the trucker. Clearly, shady business practices shouldn’t be tolerated, but requiring a bond isn’t going to weed out cheating dispatchers.
John Gallagher, Washington Correspondent Wednesday, December 15, 2021
FMCSA rejects 2nd shot at $75,000 truck-broker bond exemption – FreightWaves
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