Dispatching
What goes in a dispatcher carrier agreement
The agreement does two jobs: it gets you paid, and it proves you are the carrier's agent rather than an unlicensed broker.
A dispatcher carrier agreement names you as an agent of the motor carrier, states your fee and what it applies to, sets how and when you invoice, and limits what you can commit the carrier to without approval. It is the document that gets you paid when a carrier goes quiet, and the document that shows you are dispatching rather than brokering.
The clauses that matter
| Clause | What it should say | Why |
|---|---|---|
| Agency | You act as the carrier's agent under their authority | This is the line between dispatching and brokering |
| Scope of services | Load sourcing, rate negotiation, broker setup, paperwork, check calls | Prevents "I thought you did my IFTA too" |
| Fee | A percentage of linehaul, or a flat amount, stated precisely | No ambiguity on payday |
| Fee basis | Linehaul only, excluding fuel surcharge, detention, accessorials | The single most common dispute |
| Invoicing | Weekly, after delivery, due on receipt or net 7 | Sets the rhythm |
| Self booked loads | No fee on loads the carrier books without you | Fair, and it earns trust |
| Authority limits | You cannot bind the carrier without approval | Protects both of you |
| Insurance | Carrier maintains at least $1,000,000 auto liability and $100,000 cargo | You need this to book with brokers |
| Carrier obligations | Keeps authority active, provides documents, accepts or declines promptly | Cancellations damage your broker relationships |
| Term and termination | Week to week or 30 day written notice, either side | Long lock ins scare good carriers off |
| Non payment | You may suspend service if invoices go unpaid | Your only real leverage |
| Confidentiality | Neither side shares the other's broker or rate information | Standard |
| Independent contractor | Neither party is an employee or partner of the other | Tax and liability clarity |
| Governing law | Your state | Keeps disputes local |
Terms to leave out
- Exclusivity that locks the carrier in for a year. Good carriers refuse it and it is not enforceable in practice when someone just stops answering the phone.
- Any language where the shipper or broker pays you. That one sentence can turn you into an unlicensed broker on paper.
- A fee on the gross including fuel surcharge. Carriers compare notes and this is the complaint they compare.
- Penalty fees for leaving. They cost you referrals worth more than the penalty.
The limited power of attorney question
Some carriers grant a narrow limited power of attorney so you can sign rate confirmations on their behalf. It speeds up booking. Keep it narrow: rate confirmations and broker setup packets only, revocable at any time in writing, with no authority to sign contracts, leases, or anything financial. Never accept a broad POA, and never sign anything a carrier would not have read.
Practical rules
- Get it signed before the first load, not after the first dispute.
- Send it with the carrier packet request so it feels like normal onboarding.
- Use e-signature, chasing a printed copy loses you the carrier.
- Keep the fee terms on one page in plain language, and put the legal detail after it.
- Have a lawyer in your state review your template once. It is a few hundred dollars against every carrier you will ever sign.
This page is general information, not legal advice. State law varies and a one time review by a transportation attorney is worth the cost.
Common questions
What should a dispatcher carrier agreement include?
An agency clause naming you as the carrier's agent, scope of services, your fee and its basis in linehaul only, invoicing terms, limits on your authority to bind the carrier, insurance requirements, termination terms, and non payment remedies.
Why does the agency clause matter so much?
It documents that you work under the carrier's authority as their agent rather than contracting freight yourself. That distinction is what separates legal dispatching from operating as an unlicensed broker.
Should a dispatcher fee apply to the whole gross?
No. Charge on linehaul only. Fuel surcharge, detention, and accessorials belong to the carrier, and charging on the full gross is one of the most common complaints carriers have about dispatchers.
Do you need a power of attorney to dispatch?
Not always, but many carriers grant a narrow limited power of attorney so you can sign rate confirmations for them. Keep it limited to rate confirmations and broker packets, revocable in writing, with no financial authority.
Should the agreement lock the carrier into a long term?
No. Week to week or 30 day written notice on either side is standard. Long exclusivity terms scare off the carriers you most want and are hard to enforce anyway.
Can you write the agreement yourself?
You can draft it yourself, but have a transportation attorney in your state review the template once. It costs a few hundred dollars and applies to every carrier you sign after that.
Want the whole system instead of the summary?
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