A dispatcher-carrier agreement is the written contract between an independent truck dispatcher and the carrier it books loads for. It should spell out the services, the dispatcher’s authority, the fee and when it is paid, each side’s duties, and how either side can end the arrangement.
Without one, every disagreement turns into “but I thought we said.” With one, both sides know the rules before the first load. Here is what a good agreement covers and what to watch for.
Key takeaways
- Put the dispatcher-carrier relationship in writing and have both sides sign before you book a single load.
- The fee section must say how the fee is calculated, what it applies to, and when it is paid.
- State exactly what the dispatcher may do for the carrier, such as negotiating rates or signing rate confirmations.
- The carrier keeps the right to accept or refuse any load and stays responsible for its own authority, insurance and safety.
- Include a clear way to end the agreement, with a notice period.
What is a dispatcher-carrier agreement?
It is a services contract. The carrier hires the dispatcher to find and book freight, handle paperwork and communicate with brokers. In return, the dispatcher earns an agreed fee.
The dispatcher works for the carrier, not for the broker or the shipper. The agreement should make that clear, and it should describe the dispatcher as an independent contractor rather than an employee, if that is how you work together.
It is a different document from the broker-carrier agreement, which the carrier signs with each broker, and from the rate confirmation for each load. Our guide on what a rate confirmation is explains that one.
What should a dispatcher-carrier agreement include?
Most agreements cover the same core sections. Use this as a checklist.
| Section | What it covers | Why it matters |
|---|---|---|
| Parties | Legal names, addresses, the carrier’s MC and USDOT numbers | Shows exactly who is bound by the contract |
| Services | Finding loads, negotiating rates, carrier setup, paperwork, check calls, invoicing | Sets what the carrier can expect, and what it cannot |
| Authority | What the dispatcher may do on the carrier’s behalf, such as signing rate confirmations | Prevents disputes over loads the carrier did not approve |
| Fee | How the fee is worked out, what it applies to, and the payment schedule | A common source of disagreements |
| Carrier duties | Keeping authority, insurance and equipment current, following safety and hours of service rules | Makes clear the carrier is responsible for its own compliance |
| Dispatcher duties | Honest communication, accurate load details, protecting carrier information | Sets the standard of service |
| Right to refuse | The carrier and driver can turn down any load | Keeps the carrier in control of its own trucks |
| Confidentiality | How rates, contacts and documents are kept private | Protects both businesses |
| Liability | Who is responsible for cargo claims, accidents and fines | The dispatcher is usually not responsible for the carrier’s freight or driving |
| Term and termination | Start date, length, notice period, fees owed after ending | Gives both sides a clean way out |
| Signatures | Signed and dated by both sides | An unsigned agreement is weak evidence of what was agreed |
How should the fee section be written?
Write the fee so a stranger could calculate it from the agreement alone. Vague fee wording is a common cause of disputes in these contracts.
- Name the method. A percentage of the load’s gross pay, a flat fee per load, or a flat fee per week are common choices.
- Say what it applies to. Line haul only, or also fuel surcharge, detention, layover and TONU payments?
- Say when it is due. After delivery, after the broker pays, or on a set weekly date.
- Say how it is paid. Invoice and bank transfer, or another method both sides agree on.
- Cover cancelled loads and unpaid loads. Is a fee owed if the broker never pays the carrier?
We do not quote typical dispatch fees here. The right fee is something you and each carrier agree on.
A worked example
The numbers below are an example only, not a typical rate or fee.
A carrier’s load pays $2,000 in line haul plus $100 in detention. The agreement says the dispatcher’s fee is a percentage “of the load.” The dispatcher calculates the fee on $2,100. The carrier calculates it on $2,000, saying detention is the driver’s time, not the dispatcher’s work.
Both readings are reasonable, which is the problem. A better clause would say: “The fee is calculated on line haul and fuel surcharge only, and does not apply to detention, layover or lumper reimbursements.” One sentence settles it before it starts.
What should a dispatcher avoid putting in the agreement?
Avoid anything that makes you look like a broker or an employer rather than a dispatcher. Some points to think about:
- Taking payment from the broker or shipper. Broker payments should go to the carrier or its factoring company, not to you. The carrier then pays your fee.
- Controlling the driver’s work. Telling the driver how to drive or when to take breaks is the carrier’s job. Your role is to book loads the driver can legally complete.
- Locking the carrier in. Long terms with no way out can sour the relationship. A reasonable notice period works better.
- Promises you cannot keep. Do not promise a minimum number of loads or a set level of pay.
Whether a dispatch service needs its own FMCSA broker authority depends on how it operates. Read our post on whether truck dispatching is legal and needs a license, and check FMCSA’s current guidance.
This is general information, not legal advice. Have a transportation attorney review your agreement before you use it.
Where can you get a dispatcher-carrier agreement template?
The Dispatcher 101 course includes dispatcher-carrier agreement templates as part of the Gold Unlimited Access Plan only. They sit with the other Gold resources, agreements and scripts. The Silver Monthly Payment Plan does not include agreements or templates. If you are not sure which plan fits, our page on which plan is right for me compares them side by side.
Whatever template you start from, read every line and change it to fit how you and each carrier actually work.
Frequently Asked Questions
Does a dispatcher need a contract with every carrier?
Yes. Each carrier is a separate client, so each needs its own signed agreement, even if the terms are the same.
Can a carrier cancel a dispatcher-carrier agreement?
Usually yes, by following the termination section. Most agreements require written notice and settle any fees owed for loads already booked.
Who should sign the agreement for the carrier?
The owner or an officer of the carrier company who has the power to sign contracts for it. For an owner-operator, that is usually the owner.
Can the agreement allow the dispatcher to sign rate confirmations?
It can, if the carrier agrees. The authority section should say exactly what the dispatcher may sign and any limits, such as rates or lanes.
Learn how to set up carrier clients properly
Dispatcher 101 covers how to find carrier clients, agree on terms and book your first load, with 1-on-1 mentorship from Joe Piazza on both plans. To try it first, start with the free Dispatch Your First Load tool, and read our guide on how to find truck drivers as a new dispatcher.
