1. Scope of Services
The Dispatcher agrees to provide dispatching and freight management services, including:
· Searching for and securing freight opportunities.
· Negotiating rates and load terms with brokers and shippers.
· Assisting with route planning and load coordination.
· Managing load documentation.
· Communicating with brokers, shippers, receivers, and drivers.
· Monitoring available Hours of Service and considering the 60/70-hour rule when planning loads.
· Providing market insights to maximize carrier profitability.
2. Onboarding & Setup Fee
A one-time, non-refundable Onboarding and Setup Fee of $250.00 is required before dispatch services begin.
The onboarding fee includes:
· Carrier profile setup and review.
· Document management and organization.
· Assistance with carrier packet preparation.
· Factoring company guidance and recommendations.
· Load board setup assistance.
· Initial operational review.
· 24/7 dispatch support during the first two dispatched loads.
· Rate and profitability analysis assistance.
This fee helps establish the Carrier’s account and ensure all documentation is properly organized before operations begin.
3. Dispatch Service Fees
The Carrier agrees to pay the following dispatch fees:
· First dispatched load: 5% of the gross load revenue.
· All subsequent loads: 7% of the gross load revenue.
Dispatch fees are earned upon successful load booking and completion.
4. Payment Terms
· Dispatch invoices will be issued every Friday.
· Payment is due the following Monday.
· Failure to pay invoices may result in suspension of dispatch services.
· Carrier remains responsible for all earned dispatch fees.
5. Factoring Services
To improve cash flow, Dispatcher recommends the use of a factoring company so Carrier can receive payment weekly rather than waiting 30–90 days for broker payments.
Carrier acknowledges:
· Carrier is solely responsible for selecting and enrolling with a factoring company.
· Dispatcher is not responsible for establishing factoring accounts.
· Dispatcher may provide recommendations and guidance upon request.
· Factoring fees (typically around 3% or as determined by the factoring company) are the responsibility of the Carrier.
6. Carrier Responsibilities
Carrier agrees to:
· Maintain active operating authority.
· Maintain all required insurance coverage.
· Remain compliant with FMCSA regulations.
· Keep equipment safe and operational.
· Ensure drivers remain compliant with Hours of Service regulations.
· Provide accurate driver and equipment availability.
· Promptly communicate delays, breakdowns, accidents, or service interruptions.
7. Load Board Accounts
Carrier is responsible for:
· Creating and maintaining load board accounts.
· Paying all load board membership fees.
Dispatcher may assist with setup; however, all load board costs remain the responsibility of the Carrier.
8. Driver Communication Requirements (6-Point Communication Policy)
Drivers must provide the following updates for every load:
1. Arrival at Shipper
Driver must notify Dispatcher immediately upon arrival.
2. Loading Begins
Driver must notify Dispatcher when loading begins and politely ask shipping personnel for an estimated loading completion time.
3. Loaded and BOL Received
Driver must notify Dispatcher once loading is complete and immediately send a copy of the Bill of Lading (BOL).
4. Departing Shipper
Driver must notify Dispatcher when leaving the shipper and provide an estimated arrival time to the receiver.
5. Arrival at Receiver
Driver must notify Dispatcher immediately upon arrival at the receiver and communicate any unloading delays.
6. Delivery Complete
Driver must notify Dispatcher when unloaded and immediately send the signed Proof of Delivery (POD).
9. Documentation Management
Dispatcher will maintain records of:
· Rate Confirmations
· Bills of Lading (BOL)
· Proofs of Delivery (POD)
· Broker Packets
· Carrier Packets
· Load Information
· Dispatch Records
· Other load-related documentation
Dispatcher agrees to maintain organized records for operational purposes.
10. Load Approval Process
Dispatcher agrees that:
· No load will be booked without Carrier approval.
· Carrier availability will be verified before load acceptance.
· Dispatcher will communicate load details before booking.
· Carrier retains final authority over accepting or rejecting any load.
11. Rate Negotiation & Profitability Commitment
Dispatcher agrees to:
· Negotiate the highest reasonable rates possible.
· Consider deadhead mileage when evaluating loads.
· Utilize market trends and hot market maps when negotiating freight rates.
· Focus on securing profitable freight opportunities.
· Review rates against Carrier’s break-even operating costs whenever possible.
· Seek opportunities that help Carrier maximize revenue and profitability.
12. Customer Service Commitment
Dispatcher agrees to:
· Provide professional and respectful communication.
· Build long-term relationships with brokers and shippers.
· Represent Carrier professionally.
· Prioritize Carrier profitability and operational success.
· Provide 24/7 support during the first two dispatched loads.
Dispatcher’s goal is to help keep Carrier moving, profitable, and positioned for long-term success.
13. Independent Contractor Status
Dispatcher is an independent contractor and not an employee, partner, or agent of the Carrier.
Dispatcher shall not be responsible for:
• Driver conduct
• Cargo claims
• Safety violations
• Traffic citations
• Insurance claims
• FMCSA compliance violations
• Equipment maintenance
• Employment matters
These responsibilities remain solely with the Carrier.
14. Termination
Either party may terminate this Agreement with written notice.
Termination does not eliminate Carrier’s obligation to pay earned dispatch fees for loads booked or completed prior to termination.