DISPATCHER 101 TRUCK DISPATCHING A QUICK LOOK AT A THRIVING INDUSTRY PDF Free Download
1 / 16/16
100%
INDUSTRY OVERVIEW
Trucking is an industry bound for growth in the next several
years, and truck dispatching will surely be riding along.
Check out these numbers:
24%
36%
66%
70%
Expected spike in overall
freight tonnage in 2022
Truck industry’s
share of total
freight transport
in 2022
Expected growth
in freight volumes
between 2020
and 2031
Expected revenue increase
in the freight industry in
2022
There is still plenty of room for new businesses in trucking, but not enough personnel for
them. To address the shortage, the transportation industry has made efforts to attract more
job applicants through higher wages, better working conditions, and improved benets.
Given these forecasts, the trucking industry is certainly worth watching from an economic
standpoint. From a career standpoint, it may well be worth joining. A good career path to
consider in this industry is truck dispatching. With your accumulated experience and capital
from dispatching, you may eventually want to set up your own trucking company.
You’ll need training to build a career in this industry, but take this quick look at what truck
dispatching can offer you as a business.
www.dispatcher101.com
ABOUT TRUCK DISPATCHING
WHAT DOES A TRUCK DISPATCHER DO?
What is truck dispatching?
hTruck dispatching is a coordination and management job that involves dealing with
shippers or freight brokers, carriers, truck drivers, and maintenance per-
sonnel in the transport of goods from one location to another. Before we proceed, let’s
dene each of those terms in the context of truck dispatching:
hShipper - an individual or company with goods that require transporting by land, sea, or
air
hFreight broker - a legal entity that may represent a shipper in arranging with a carrier
for the shipper’s goods to be transported
hCarrier - an individual or company that professionally transports goods
hTruck driver or Trucker - an individual who is tasked with loading a shipper’s goods,
transporting them by truck to a designated location, and unloading those goods at the
destination
hMaintenance personnel - persons responsible for conducting safety inspections,
maintenance, and repair of trucks and related equipment
A truck dispatcher nds and negotiates freight loads on behalf of the carrier that contracts
their services and, when an agreement is reached, manages the entire transporting process
from loading to delivery.
Let’s break down this job description
into the specic tasks involved in truck
dispatching. Truck dispatchers do the
following:
hSchedule and manage loads
in the most cost-efcient way
possible. The more loads carriers
can ship, the more money they make.
The more miles or hours the drivers
log, the more they earn.
www.dispatcher101.com
Your job is to schedule loads and plan routes so that the most shipments can be completed
in the least amount of time and with the most negligible fuel and vehicle wear and tear
costs.
hUse computer systems to track delivery trucks en route and make sure
goods arrive undamaged and on time. You have to be familiar with load boards,
GPS and satellite tracking, smartphones, and weigh station bypass systems. You need
all these to keep the company in business and keep trucks moving safely, smoothly, and
on schedule.
hCoordinate the transport of goods with drivers, suppliers, and customers.
To accomplish this effectively, you should know your drivers and their locations and
routes like the back of your hand.
Know which drivers need to get in touch frequently and which don’t. Do more check-ins with
the former than with the latter. Use your knowledge of their locations and routes to give
them support or practical advice when needed.
hCommunicate with clients (shippers and vendors or their broker), drivers,
and other logistics personnel by phone and email. Among the things you have
to ascertain with clients is whether their cargo has any special needs. There are very
different accommodations to be made when transporting livestock, chemicals, or food,
for example.
Help the drivers and other personnel ensure that these special considerations are
appropriately documented and implemented.
hInform the receiving entity of any issues on the route, like bad weather
or vehicle maintenance problems. While it is the responsibility of drivers and
dispatchers to get loads delivered within schedule, sometimes the unpredictable
happens. It’s your job to let those at the receiving end know of any potential delivery
delays.
At the same time, you have to help drivers troubleshoot: nd alternate routes quickly if
there’s a blockage along the way; arrange for repairs, or send a new truck if the truck on the
route has a breakdown or accident.
hEnsure that there is no idle time for drivers and trucks. Not only do you have
to manage the loads and schedules of the moment, but you also have to be 2 or 3 steps
ahead with future loads to keep trucks on the road. Keep looking for loads to book as
you manage current ones and spot opportunities for trucks to backhaul.
hMaintain safety regulations. One of the most essential aspects of your job is to
keep the drivers safe. Do this not only by troubleshooting while they’re on the road but
also by ensuring that they work only within the mandated hours of service and have the
necessary break-time.
Clearly, a dispatcher’s job is the multitasker’s comfort zone. But even though you’re good at
multitasking, it may help if you keep detailed notes or lists of things you need to do.
Distractions can come up at any time, and you would have to deal with them. With an
updated to-do log, the items organized by priority, you can get back on track quickly and
avoid inadvertently missing an important task.
www.dispatcher101.com
HOW MUCH DOES A TRUCK DISPATCHER EARN?
WHAT KIND OF EDUCATION
DOES TRUCK DISPATCHING REQUIRE?
WHAT KIND OF EQUIPMENT DO I NEED TO
BE A TRUCK DISPATCHER?
As of December 2021, a truck
dispatcher working for a
company can earn an average
annual salary of $51,088 or
$4,257 a month. The usual
salary range is $43,874 to
$59,911 annually, or $3,656 to
$4,992 a month (based on data
from Salary.com).
Salaries are affected by different
factors such as education,
certications, years of
experience, and any additional
skills relevant to the job.
The usual minimum educational requirement for the job is a high-school diploma or a GED.
Some trucking companies may have additional requirements such as previous trucking
experience, an associate’s or bachelor’s degree, or a degree specically in transportation,
logistics, or supply chain management.
Of course, it wouldn’t hurt if you know how to drive and are familiar with the U.S.
Department of Transportation rules and regulations.
For a complex job, truck dispatching is surprisingly low-
maintenance when it comes to equipment. All you need to
start with are a cell phone and laptop and, of course, a stable
internet connection. Get access to a load board as well.
Some load boards are free; some require a subscription. Find
one that suits your needs and current circumstances.
You could also use a printer, scanner, and fax machine. If you
can’t procure one for yourself, nd a nearby outlet that offers
printing, scanning, and fax services.
Source: https://www.salary.com/tools/salary-calculator/truck-dispatcher
www.dispatcher101.com
HOW MUCH CAPITAL DO I NEED TO BE AN
INDEPENDENT TRUCK DISPATCHER?
DO I HAVE THE QUALITIES OF A SUCCESSFUL TRUCK
DISPATCHER?
Given the minimal equipment required to start a single-person operation, you may not need
to spend so much on this, especially if you already have a cell phone or laptop on hand. At
the end of 2021, laptop models for business use cost an average of $600 to $1,000, and cell
phones around $400.
Additional equipment costs will be for a printer, scanner, and fax machine if you haven’t got
them yet. You could acquire these gradually as you start earning. If you intend to subscribe
to one or more load boards, add in the subscription fees for those as well. You could also
start with the free load boards and move on to the paid membership boards when you can
afford them.
Since you want to operate legally, include business registration and licensing fees to your
initial costs - research these requirements and fees in your location
To succeed at truck dispatching, you have to know how to use the computer systems your
job requires for communications, tracking, and monitoring. You should also be familiar
with transport industry laws and regulations. You can learn these things in a good training
course. In addition to this knowledge, you need to have or develop the following:
hFluency in English and, optionally, a second
language. English is our default language, but
knowing a second language is always a plus in our
increasingly multicultural environments. Fluency in the
native language of the person with whom you are dealing
will facilitate communications and make your work a lot
easier.
hSolution-focused thinking. So much of the task
of coordinating involves troubleshooting and problem-
solving. You need to think resourcefully in high-stress or
critical situations. Your job is to spot a problem and nd
a solution to get a delivery completed safely and on time.
hAttention to detail. The central part of your job
requires coordinating multiple drivers in different
locations and at varying stages of transporting a load,
and planning loads so that trucks and drivers do not
waste time waiting for the next shipment. Along with
this, you’ll also be troubleshooting and dealing with the
unpredictable.
Checklist:
Truck Dispatcher
Attributes
3Fluent in English
3Fluent in a second
language
3Solution-focused
thinker
3Attentive to detail
3Skilled at dealing
with people
3Flexible
3Calm
www.dispatcher101.com
The job certainly requires an extraordinary amount of organizing and prioritizing, for which
you will need an equally extraordinary ability to pay attention to detail.
hInterpersonal skills. Your job requires you to deal with different personality types all
day, every day. You need to know how to interact productively with people, no matter
how they come across to you and how you may feel about them.
Remember: the bottom line in all interpersonal communications is respect. Respectful
communication is a conict-buster, even a possible problem-solver.
hFlexibility. A truck dispatching career is stable, but it is far from a regular oce job
with set work days and work hours. Drivers are on their routes all hours of a day, all days
of a week, so you may have to be available to do your job even on weekends and at odd
hours.
If you’re a exible person and not a fan of routine, you will likely be able to handle this.
hA calm disposition. Truck dispatching is a high-pressure and high-stress job. If you
are easily upset or unnerved, this may not be a good match for you. A calm disposition is
a prerequisite to thinking clearly, working through problems, coping with unpredictables,
and communicating productively even with upset or angry drivers or customers.
If you have these qualities, you could very well succeed at truck dispatching or even use it
as a stepping stone to bigger things such as, for instance, running your own company.
SETTING UP
YOUR BUSINESS
WHAT WOULD I NEED TO KNOW TO RUN MY OWN
TRUCKING OR TRUCK DISPATCHING COMPANY?
If you’ve had some years of experience in truck dispatching, you may want to set up your
own truck dispatching company. And if you have the drive and ambition for it, you could
use your truck dispatching business as a springboard for eventually running a full-edged
trucking company.
Following are some of the things you need to know if you want to go into business for
yourself as a company owner in this industry. Consider these as starting points in your
trucking industry career map. You’ll get more detailed knowledge from a good training
course, so consider signing up for one if you want to get started.
www.dispatcher101.com
hWriting a business plan. This must be your rst step. Writing down your plan will
help you organize and assess your ideas, set directions for your business, and identify
potential start-up problems and solutions. You may also have to present this if you ever
apply at a bank or other funding source for nancing.
Draw up a 3- to 5-year projection for your business, with detailed measures for obtaining
funding and increasing revenue. Include the following elements when you write your
business plan:
} An executive summary with your name and
relevant background as the business owner, your
business type, your business name, a description
of your company, your business goals, and your
general plan for achieving those goals.
Deciding on whether your business is to be a sole
proprietorship, a partnership, a corporation, or a limited
liability company (LLC) is important because this directly
affects your tax situation and your personal liability in
case someone sues you as the business owner. Get a tax
accountant’s advice on your best options.
Give your business name considerable thought as well
because the name carries your company’s identity
and image. It should also be unique, particularly for
registration purposes. Check online to be sure your
chosen company name isn’t taken yet.
Checklist:
Truck Dispatcher
Attributes
3Fluent in English
3Fluent in a second
language
3Solution-focused
thinker
3Attentive to detail
3Skilled at dealing with
people
3Flexible
3Calm
} A company description expanding what you have written in the executive
summary, including aspects of your company that make it unique in the industry, and
aspects of your experience and knowledge that will help you grow your business
} A description or outline of your operations, including the technology and
systems you plan to install, and the stang structure and hiring procedures you will
implement
} A list of the services your company will provide, with a brief description of each
} A market analysis assessing the truck dispatching market in terms of freight
volume and value, customer demographics and buying patterns, and the overall
economic environment in which you will be operating.
} A sales and marketing strategy to position yourself in the truck dispatching
market, including your plans for building and retaining a customer base.
} Your nancial projections for the period covered by your business plan,
estimating your company’s future expenses, and detailing your methods for
obtaining funding and achieving your projected revenue.
Including different possible scenarios in your projections would be wise because the future
is always unknown and unpredictable.
www.dispatcher101.com
hGetting a commercial driver’s license. Owner-operators and truck drivers are
required by the Federal Motor Carrier Safety Administration (FMCSA) to obtain a valid
commercial driver’s license (CDL). Drivers aged 21 and up qualify for this; those aged 18-
20 may only drive intrastate.
For the CDL, you and your drivers will rst have to pass vision and knowledge tests and
obtain a commercial learner’s permit (CLP), which also has pre-qualication requirements
determined by your state. You have to pay for your CLP as well.
After getting your CLP, you have to take the Skills Test and pass all 3 of its components
covering vehicle pre-trip inspection, basic controls, and road skills. When you’ve met all the
prerequisites, these are what you have to submit to obtain your CDL:
} CDL application (with application fees) for the type of vehicle to be driven
} U.S. residency
} Proof of identity
} Valid social security number
The FMCSA has also issued the following update:
Beginning February 7, 2022, drivers applying to obtain a Class A or Class B CDL for
the rst time will be subject to the requirements in the Entry-Level Driver Training
(ELDT) regulations. These regulations establish a Federal standard for training. CDL
applicants must successfully complete this training before they will be permitted to
take the CDL skills test. Drivers will search for a training provider using the upcoming
Training Provider Registry. For more information, visit https://tpr.fmcsa.dot.gov.
hApplying for a trucking authority with the FMCSA. You need a trucking authority
if your company’s trucks have a gross vehicle weight (GVW) over 10,000 and will be
transporting loads over state lines.
Before applying, register your company with your state, using your business name. When
this is done, le an application for a trucking authority and a motor carrier (MC) number
request, both with the FMCSA. You need an MC number to carry cargo interstate.
hDesignating a process agent. A process agent is your company’s legal
representative in any court proceedings involving your business. You need a process
agent for every state where your business operates and where you travel or work.
The process agent will also take care of ling your BOC-3 (Designation of Process Agents)
with the FMCSA. Select your process agent from the list on the FMCSA site.
hComplying with other legal requirements. In addition to your driver qualications,
CLP, CDL, trucking authority, MC number, and BOC-3, there are a host of other legal
requirements to attend to. Among these are the following:
} Registration with the Department of Transportation (DOT)
www.dispatcher101.com
} Registration for a Unied Carrier Registration (UCR) permit and an International
Registration Plan (IRP)
} Compliance with drug and alcohol testing requirements
} Certication after completion of DOT medical, osteopathic, and chiropractic exams
conducted by medical professionals listed with the FMCSA
} Application for DOT numbers
} Application for an Employment Identication Number (EIN) to register your company
as a business entity with the IRS
} Installation of FMCSA-compliant electronic logging devices in your trucks
} Application for a Standard Carrier Alpha Code (SCAC) issued by the National Motor
Freight Trac Association (NMFTA)
} Payment of heavy highway vehicle use tax (Form 2290), if applicable
} Obtaining of state or city business licenses
These requirements are meant to maintain safety for everyone concerned and uphold driver
and vehicle standards for interstate and intrastate cargo transportation.
hOpening a bank account
and a credit card account
for the company. Keep
your personal and business
nances separate. Open a bank
account and credit card account
specically for your company
to avoid tax complications and
build a business credit history.
Use the company account for all
business transactions, including
the registration and licensing
processes you have to undergo
to open your business. Pay
all your business obligations
promptly to establish a positive
credit rating from the start.
} Obtaining insurance. Your company needs protection against possible losses,
damage, or accident-caused injuries or fatalities connected with business
operations, so get the best insurance policy you can and le it with the FMCSA. A
trucking business should have coverage for the following:
} Commercial liability - coverage for bodily or personal injuries and property
damage due to business operations, and injuries sustained on company premises
} Cargo - coverage for loss, damage to, or theft of cargo while in transit
www.dispatcher101.com
} Physical damage - coverage for vehicle loss or damage due to theft, re,
earthquake, vandalism, falling objects, overturning, and collisions with another
vehicle or with an object, bird, or animal
} Non-trucking use - coverage for physical injury or damage to property in a
vehicular accident where a company truck is in use for non-business purposes (e.g.,
a personal errand or hauling items for a friend who’s relocating)
hFinding the right truck and trailer. Think hard before you purchase your truck,
trailer, and related equipment because this is a major investment. Consider the type and
volume of cargo your company will be hauling and select vehicles accordingly.
Consider also whether you should buy or lease your vehicles and equipment. Both options
have advantages and disadvantages depending on your company’s situation. Consult with
other owner-operators and truck drivers that you know. Compare prospective vehicles as
well as nancing options before deciding.
hHiring and retaining good drivers. In the trucking industry, reliable drivers are gold.
Your business can rise or fall on the quality of your hires.
Get the best by offering attractive compensation and benets, and retain the best by
treating all your employees with respect and consideration. Remember that they have their
stresses to cope with too.
Considerate treatment is necessary because driving is a high-pressure job strewn with
unpredictables. Your drivers need to know they have their company’s support on the road
and off it.
hFinding customers and booking loads. Loads are your business’s bread and butter.
Join a few online load boards. The best ones require a subscription, but you can start
with the free load boards if you like.
Optimize the load boards you’re using by staying updated on consumer and market trends
in the trucking industry and nding the most protable routes based on your starting
location. Use
www.dispatcher101.com
hObtaining contracts and dedicated freights. There are two types of trucking
contracts: a long-term or dedicated contract and a rate conrmation. If you’re a small
business or just starting, the second type is more likely to be within your reach.
A rate conrmation is a contract detailing all aspects of an individual load, from pick-up
and drop-off points to pay rates and fees. These contracts are relatively easy to secure on a
regular basis and will help keep your company running.
The dedicated contract, on the other hand, is something to aim for when you’ve had more
experience and exposure in the business. In this contract type, the shipper engages your
company to ship all their loads within a specic category.
When your company has proven its reliability in the industry, you could try negotiating for
this type of contract.
While pursuing contracts, aim to secure a dedicated freight as well. You may need to be
operating at least 15 trucks to manage this, but it will be a good source of steady revenue.
A dedicated freight is an agreement where a shipper or broker hires a carrier (your company,
for instance) to transport a load regularly on the same route (a dedicated lane) for a xed
rate and over a given period.
The carrier must provide a dedicated driver capacity for the shipper. In addition, the carrier
may also have to fulll some minimum service requirements to retain the dedicated lane.
The advantages offered by a dedicated freight are worth the time and effort you may have
to put into obtaining it. A dedicated freight is consistent and long-term, and therefore a
stable source of income for your business.
You have to remember, though, that the agreement is based on mutual trust and your
assurance of ecient, reliable service. If you hold to your end of the bargain, your company
will reap its benets.
HOW MUCH COULD I EARN AS THE OWNER OF A
TRUCKING COMPANY?
www.dispatcher101.com
An independent truck dispatcher with 3 to 5 trucks in their eet can earn an average month-
ly income of $3000 to $5000, based on potential monthly earnings of $1000 per truck. They
can earn as much as $10,000 a month with additional investments in time and resources.
According to glassdoor.com, eet owners’ base pay as of November 2021 ranged from
$46,000 to $128,000 per year. The national average was $76,669 per year.
With strategic thinking and wise use of your earnings, you can grow your company, adding
to your eet of trucks and hiring more drivers, dispatchers, and staff as your company’s
nances and credit standing permit.
HOW MUCH CAPITAL WOULD I NEED TO SET UP A
TRUCKING COMPANY?
If you want to progress from being
a single-operator truck dispatching
business to a fully-staffed trucking
company, be prepared for the costs
as this will not be cheap. Be sure
you have enough funds to cover
operations for the rst 6 months and
make lease payments.
You may need external funding, so
look up possible sources. Traditional
funding sources such as banks
and credit unions tend to have
more stringent requirements than
alternative funders like short-term
loan and merchant cash advance
providers. However, the latter may
also charge higher interest rates. Weigh your options well.
The following cost estimates for starting a trucking company as of 2022 come from https://
www.protableventure.com/cost-analysis-trucking-company/:
hTruck = $10,000-$20,000. These are the range of prices for a brand-new truck
according to size and tonnage. You can purchase a second-hand truck at a much lower
price, around $2,000.
You could also get a new truck on installment if you have a good credit score. And, of
course, you have the option of leasing trucks instead of buying them outright.
hRegistration per truck = $500. Each truck has to be registered with the Department
of Motor Vehicles or other regulatory authorities. $500 is an approximation; the registra-
tion fees could be lower than that.
www.dispatcher101.com
hBusiness licenses and permits = $500. There are plenty of legal requirements
for running a trucking business. Whether you are an owner-operator, a work-from-home
dispatcher with a single truck, or a small or large eet owner, you have to have licenses
and permits for your trucks to carry specic load weights and drive inter- or intrastate.
hInsurance = $1,000-$2,000 per truck. Trucking carries many risks, from truck loss
or damage, to driver injuries or death, to cargo loss or damage. For this reason, every
trucking company owner must have insurance coverage, the more comprehensive, the
better. Get coverage for each truck and driver, and the cargo you will be transporting.
Insurance payments are made over a certain period, so this will be an ongoing expense.
An annual insurance budget of $1,000-$2,000 should suce if your company has just one
truck. You will need a larger budget if you have a more extensive eet.
hWebsite = $100-$200. You have to market your services, so setting up a company
website is crucial. You could hire a website developer or do it yourself using online tools
created for the purpose. Budget $100-$200 to set up your website and learn to maximize
its use for generating more customers and retaining those you already have.
hMarketing and promotion = $500. This amount is the minimum budget you should
have for promoting your company. Plan out your marketing and promotion strategy
to make the best use of your funds and resources. These are some of the things you
should do:
} Create a logo for your company. Do it yourself or hire someone to design it for you.
} Paint your truck(s) in company colors and with the company name and logo.
} Create promotional materials such as brochures and yers.
} Have business cards printed for yourself and your employees.
hOfce or parking space. The oce is optional. If you can afford one, set a budget for
it. But if you are working from home, you won’t need it. But you do have to obtain parking
space for each truck.
If you have only one truck and a garage at home that can accommodate it, you don’t have a
problem. If you don’t have space in your garage or you have more than one truck, look for a
safe parking space that will accommodate your vehicle(s). Find out how much it will cost to
use that space and factor the cost into your business budget.
hStafng. If you are an owner-operator driving a single truck, you could do the jobs of
driver, dispatcher, cashier, and marketer all by yourself. But if you want your business to
expand, you have to think ahead and create a stang budget that covers job-hiring ads,
wages or salaries, and benets.
How much you should budget for this will depend on the stang projections you have
made in your business plan.
hMaintenance costs. Every truck you purchase comes with maintenance costs.
Equipment maintenance is not something you can scrimp on. Your business hinges on
each truck being up and running when the loads are booked.
Set aside a budget for truck maintenance and repair, and remember to inspect each vehicle
regularly and thoroughly.
www.dispatcher101.com
hMiscellaneous expenses = $10,000-$50,000. Variables and unpredictables
are unavoidable elements of the trucking business. There will be expenses you cannot
foresee, no matter how carefully you have prepared your business plan. Set aside this
budget to deal with surprises.
hTotal estimated costs. If you are starting a small-scale, owner-operated trucking
business, expect total costs of $200,000 and up. If you have just one truck or use
second-hand trucks, the costs could be lower.
For a medium-scale trucking business, estimated initial costs total $1 million. For a large-
scale operation, the estimate is $5 million and up.
The FMCSA classies trucking companies by eet size, as follows:
VERY SMALL
Very Small 1-6 power units*
Small 7-19 power units
Medium 20-100 power units
Large 101-2,000 power units
Very Large 2,001-5,000 power units
Mega 5,001+ power units
* power unit - the head of a truck, also
called a tractor
You have a great future in the trucking
industry if you have drive and discipline.
What works to your advantage is that
the sector is hospitable to small-scale
operations. Start with one truck and build
your business up to as large a eet size as
you would like to take it.
IS TRUCK DISPATCH THE
RIGHT CAREER FOR YOU?
TAKE THIS QUIZ AND FIND
OUT!
} Are you a hard-working professional
who wants to start building a business
and earning income now?
} Are you working for someone else but
want to invest that time in your own
business and keep the rewards for
yourself?
} Are you a truck driver who misses your
friends, family, and children? Do you
want to get in the dispatching game
but don’t know how?
} Do you lack the time or money to go to
college but want a serious, life-chang-
ing career without the debt of a degree
hanging over your head?
www.dispatcher101.com
} Are you a couple who want to start building a life together, with enough to afford the
things you deserve and do what you want to do?
If you answered “yes” to any of the questions, then truck dispatch may, in fact, be the right
career for you. Weigh your options; consider the possibilities. Learning the ropes of truck
dispatching will take time, effort, and some money, but if the learning gets you closer to
your goal of living a self-directed life, it will be worth all that you put into it.
Be an employed truck dispatcher. Be an independent truck dispatcher. Be a trucking
company owner. However far you may want to go in this industry, you can get started now.
TAKE A TRAINING COURSE AND BE PART OF
THE FAST-GROWING AND EXCITING WORLD OF
TRUCK DISPATCHING!
www.dispatcher101.com
