Freight Broker Vs Freight Dispatcher

March 27, 2025

Freight Broker Vs Freight Dispatcher

Without the logistics industry, global trade would simply grind to a halt. So, if you’re thinking of making a career change, there aren’t many sectors you can enter that are more important.

Becoming a freight broker or a freight dispatcher is the perfect way to take advantage of the booming logistics market in the US. But how do you decide which career path to choose?

This guide will help you make that decision. It covers the responsibilities of each role, the pros and cons, the key differences between them, average annual salaries, and everything else you need to know.

What Is A Freight Broker?

Freight brokers act as the middlemen between shippers and carriers. They don’t have their own warehouses or trucks but use a network of carriers to move freight from one location to another.

Responsibilities of a freight broker

The main responsibility of a freight broker is to negotiate the terms of transportation between shippers and carriers and to help both parties arrive at an acceptable rate. However, freight brokerage comes with other responsibilities, too, such as:

Handling administrative tasks like managing insurance certificates and preparing bills of lading.
Giving real-time updates to shippers and carriers during the transportation process.
Planning and managing the logistics of shipments from start to finish.

Pros and cons of becoming a freight broker

✅ Pros	❌ Cons
The constant demand for goods movement within the trucking industry ensures a stable job market.	The logistics industry is competitive, and freight brokers need strong sales and relationship-building skills to succeed.
The salaries for freight brokers are highly competitive.	It can be fairly challenging to manage cash flow when paying carriers and waiting for payments from shippers.
Freight brokers can often choose their own working hours and work from wherever they like.	The role of a freight broker is often relatively stressful and involves operating under high pressure.

What Is A Freight Dispatcher?

A freight dispatcher, or truck dispatcher, acts as an intermediary between freight brokers and truck drivers. Primarily, their role involves finding loads for trucking companies to haul.

Some freight dispatchers work directly for trucking companies, while others have their own businesses and are known as independent dispatchers.

Responsibilities of a freight dispatcher

Besides matching brokers with transport carriers, dispatchers also have other responsibilities:

Ensuring compliance with transportation regulations.
Keeping accurate records of driver routes, shipments, and delivery/pickup times.
Relaying key information between the customer and transport carriers.
Planning and optimizing routes to reduce costs and maximize efficiency.
Helping the broker and trucking business negotiate favorable rates for both parties.

Pros and cons of becoming a freight dispatcher

✅ Pros	❌ Cons
You have total control over your work schedule.	While you can determine your own schedule, the role often requires you to work nights, weekends, and holidays.
The role offers opportunities to develop your industry knowledge and problem-solving skills.	You must be prepared to juggle various tasks simultaneously while ensuring everything runs smoothly.
You can start and grow your own business, which provides financial freedom.	The role comes with a high level of responsibility, and even a minor oversight can have significant consequences.

Freight Broker Vs Dispatcher: Key Differences

Here are the main differences that set a freight dispatcher’s and a freight broker’s work apart:

Factor	Freight Broker	Freight Dispatcher
Client Focus	Works with shippers and carriers	Mainly works with carriers and drivers
Financial Dealings	Invoices shippers and pays carriers	Doesn’t usually handle financial transactions with shippers
Transportation Involvement	Isn’t directly involved in shipping goods	Directly manages the transportation process
Regulatory Requirements	Must meet strict regulations and licensing	Generally has no regulatory or licensing requirements
Network	Maintains a network of shippers and carriers	Mainly works with a specific carrier’s network of truck drivers

How To Get Started As A Freight Broker Or Freight Dispatcher

Let’s discuss the steps you need to take to become a freight broker or dispatcher.

How to become a freight broker

The basic requirements for becoming a freight broker are:

A high school diploma or equivalent
Being at least 18 years old
Securing a $75,000 surety bond
Gaining an FMCSA license

The good news is that you don’t need to undergo any formal education to become a freight broker. However, if you really want to get ahead and have a successful career, training is invaluable. That’s where the 90-Day Freight Broker course comes in.

In just 100 hours, you’ll learn everything you need to know to excel in your new role. Some of the in-depth modules include:

Negotiating broker-carrier contracts
Identifying shipping niches and forming long-term relationships
Researching and vetting carriers
Managing cash flow

The course is fully accessible, available in video, audio, and text. Plus, it only costs $890 and we offer a 30-day money-back guarantee. Ready to start a new chapter? Join the waiting list today!

How to become a freight dispatcher

One of the biggest differences between a freight broker and a dispatcher is that a dispatcher doesn’t need a license to operate. However, obtaining a license from the National Dispatch and Freight Certification Association (NDFCA) will enhance your credibility within the industry.

Plus, if you want to improve your reputation among freight carriers, you could consider a bachelor’s or associate’s degree in a relevant subject like supply chain management or logistics.

While these licenses and qualifications aren’t strictly necessary, they give you a better chance of attracting clients and having a prosperous career.

Freight Broker Vs Dispatcher Career Outlook

The US trucking industry continues to grow, and as such, there’s never been a better time to become a freight broker. In fact, overall truck tonnage is expected to increase from 11.3 billion tons in 2023 to 14.2 billion tons in 2034.

This means there will be plenty of job opportunities for brokers in the coming years and salaries are sure to remain competitive. When it comes to job openings, there are expected to be around 30,100 for freight brokers within the next decade.

On the other hand, the career outlook for freight dispatchers isn’t as positive. This is because the job growth rate is expected to decrease by 8% in the 10 years from 2018 to 2028.

To give you a clearer picture of the job market, let’s examine the average annual salaries for brokers and dispatchers.

Freight broker salary

The average annual salary for a freight broker is currently $72,000. Yet, your experience has a big effect on the amount you earn. For example, the average annual salary for an entry-level broker is around $50,000; for more senior positions, it’s about $107,500.

Your location within the US also has an impact on your expected earnings, as this table demonstrates:

State	Average Annual Salary
California	$100,000
Texas	$102,500
Arizona	$72,500
Massachusetts	$62,500
Illinois	$57,500
Florida	$62,500
New York	$55,120

Freight dispatcher salary

The average annual salary for a freight dispatcher is much lower at $39,000. Still, as with brokers, dispatcher salaries vary based on experience levels, with entry-level dispatchers earning around $33,150 and more senior-level employees earning about $53,611.

Here’s how salaries differ for dispatchers based on location:

State	Average Annual Salary
California	$44,819
Texas	$36,401
Arizona	$38,486
Massachusetts	$42,900
Illinois	$39,000
Florida	$35,100
New York	$42,890

FAQs

1. How do freight dispatchers find available loads for carriers?

To find available loads for carriers, freight dispatchers search load boards and connect shippers who have freight to move with carriers looking for loads to haul. Searching load boards involves:

Finding opportunities to optimize routes and maximize truck utilization.
Identifying suitable freight options to match the available trucks.
Expanding networks of potential shipping opportunities.
Accessing real-time information on available loads.

2. Which role has lower startup costs?

Generally, becoming a freight dispatcher has lower startup costs than becoming a broker. This is largely because dispatchers don’t need a license or a surety bond to operate, whereas brokers do. For the most part, dispatchers only need a phone, a computer, and a reliable internet connection to start operating.

3. What are the best states to start a freight brokerage or dispatching business?

Some of the best states to start a freight brokerage or dispatching business include:

California: Ideal due to the high demand for freight services and access to numerous ports.
Texas: This state is in a strategic location with extensive highways and a thriving economy.
Illinois: Illinois is a major logistics center located at the crossroads of several major highways.
Pennsylvania: Pennsylvania has a favorable tax environment for logistics businesses.

Final Thoughts

Freight brokers and dispatchers are both crucial to the logistics industry, and each career path has its own unique benefits and challenges.

Yet, if earnings are your primary concern, becoming a broker is the better option. This is due to the fact that brokers earn an average of around $72,000 per year, while dispatchers earn about $39,000.

Sources: