When it comes to the world of freight, there are two main jobs: the freight broker and the freight dispatcher. Both play important roles in the industry, but what is the difference between them? This article will explore the similarities and differences between these two positions and their corresponding salaries and license requirements.
Freight Broker
Freight brokers are responsible for coordinating the transportation of goods and materials between suppliers and customers. They act as a middleman between the two parties, negotiating rates and ensuring that shipments are delivered on time. In order to become a freight broker, you must have a license from the Federall Motor Carrier Safety Administration (FMCSA). The national average salary for a freight broker is $55,929 per year but salaries vary widely by state. Independent freight brokers can make as much as $113,500.
In order to become a freight broker, you’ll need the following licenses and registrations:
- Operating Authority (MC Number) from the Federal Motor Carrier Safety Administration (FMCSA)
- Business license from the state in which you operate
- Bail bond
- Surety bond
- Freight broker bond
- United Carrier Registration (UCR registration)
Freight Dispatcher
A freight dispatcher is responsible for managing the day-to-day operations of a freight company. This includes coordinating shipments, tracking deliveries, and communicating with drivers. A dispatcher may also be responsible for hiring and training new drivers. The average salary for a freight dispatcher is $42,823 per year, though top earners can make more than $50,000.
In order to become a freight dispatcher, you’ll need the following licenses and registrations:
- Business license from the state in which you operate
- United Carrier Registration (UCR registration)
Key Differences Between a Freight Broker and a Freight Agent
The main difference between a freight broker and a freight dispatcher is their role within the company. A freight broker is responsible for coordinating shipments and negotiating rates, while a freight dispatcher manages the company’s day-to-day operations. Another key difference is the salary; on average, freight brokers make $75,000 per year, while freight dispatchers make $52,000 per year.
Conclusion
When it comes to licensing and registration, both freight brokers and freight dispatchers will need a business license from the state in which they operate. Freight brokers will also need an MC Number from the FMCSA, while freight dispatchers will need a UCR registration. Finally, freight brokers will need to obtain a surety bond, while freight dispatchers will not.