Good Dispatch rates?

I'd say those rates are fair. BUT - there needs to be some sort of 'guarantee' related to minimum revenue to the truck per week, and minimum per mile revenue. Otherwise, you could be making money by just feeding the truck loads that pay $0.75/mile or 60 mile loads paying $3/mile and delivering 2 days from loading. Meanwhile the truck owner would starve.

 

The rates sound low. But, it depends on the rates you are getting. When I ran my dispatch service, I charged a percentage of the rate. I always got my people good rates.

 

I charged 10%, but I earned my money. I worked hard to find the best rates. I have heard some who charge as little as 5%, but you get what you pay for in this business. Running your trucks the way I did, you are on the phone and computer non stop from early morning to later at night. I not only dispatched other trucks, but dispatched my own trucks. I had trucks running from coast to coast. If you just want to find a load without worrying much about the rate, then it may only be worth 5%. I always negotiated good rates and kept the trucks loaded. Once a truck was loaded, I started looking for a load on the other end. It is easier when you have people who are willing to follow the rates, but some only want to run very specific lanes. That can be a challenge, if you are trying to get the best rates. I also had some who did LTL freight, and that can be a lot more work. You have to take into consideration the level of service that you are providing. I read over contracts with new brokers or shippers and had power of attorney to sign for the owner. There were a couple that preferred to sign the agreements themselves. With my people, about all they had to do was drive the truck and deposit their checks.

 

I charged the same percentage, regardless of how long someone had been in business.

 

I would charge a percentage that way the drivers know you'll get them a good rate, so they don't walk away with little to nothing left.

 

That doesn't necessarily equal a good rate to the driver. I could book cheap $1,000 loads on 600 miles, not including deadhead, easily every day and make a killing on 5 or 10%.... But the drivers are not going to be happy going broke hauling for rates like that....

 

That's kind of the reason I left the last place I was signed on under. I gave up 21%, in exchange they carried my fuel, did my IFTA and all registrations. They did these things BUT I was charged for paying it. Oh and don't forget the 2% "administrative charge" here and there. I was also paying plates and insurance - everything.

When I would get empty, I would look at my options myself, but they were booking the loads and I didn't have the knowledge I do now about how the freight is really moving. I know now how much crap they fed me from the office about "oh it is slow right now" or "the rates are down" when in reality it is just office games. Example, I would get empty in say Spokane, WA and my best option would be apples or pears from WA. Instead they would book a load for a few hundred more dollars, but it was a deadhead all the way to Portland, OR. In the end it was less per mile, but that higher dollar figure is what they take their bite out of.

 

We charge 10%. But, we also find very lucrative freight. Some of our guys gross around $6,000/week. We run a lot of New York (5 boroughs) so the drivers have to suck up the city driving for the good rates. But, all in all they are very happy with our freight. The key is to having a good customer and good broker base. If you have a good mix of both, chances are that you will have enough business to keep these guys running at good rates and they wont complain about the 10% fee to run under your signs. We have had a great deal of luck with partials lately too. Especially out of the slower states like TX and NJ. Been a pretty good winter so far, knock wood.