Understanding Freight Dispatcher Contracts (Carrier Agreements)
The Short Answer
A dispatcher–carrier agreement is the contract that defines how you'll work with a trucking client: your fee structure, scope of services, payment terms, cancellation rules, and liability limits. A clear agreement protects both sides and is essential before you book a single load. This is general information, not legal advice.
Before you dispatch your first load for a carrier, you need a signed agreement. It is the document that defines how you get paid, what you're responsible for, and what happens if the relationship ends. Skipping it is how dispatchers get stiffed on fees.
Not Legal Advice
This article explains common contract elements for educational purposes. It is not legal advice — have a qualified attorney review any agreement before you rely on it.
A dispatcher–carrier agreement should include the fee structure (percentage or flat), scope of services, payment terms and timing, an exclusivity/non-exclusivity clause, cancellation and termination terms, a limitation of liability, and a clear statement that the dispatcher is an independent contractor, not a broker.
The Essential Clauses
| Clause | What It Defines |
|---|---|
| Fee structure | Percentage (5%–10%) or flat weekly fee per truck |
| Scope of services | Exactly what you will and won't do (booking, paperwork, etc.) |
| Payment terms | When and how you get paid, and what happens on late payment |
| Term & termination | How either party can end the agreement and notice required |
| Liability limits | Caps your exposure for things outside your control |
| Independent contractor | Clarifies you are not the carrier's employee or their broker |
Getting Your Fee Right
Most dispatchers charge 5%–10% of gross load revenue or a flat weekly fee per truck. The agreement should state the exact percentage or amount, when it's calculated (on gross, not net), and how you invoice. Spell out whether the carrier pays you directly or through a factoring arrangement.
Protecting Yourself From Non-Payment
- Define a clear payment schedule (e.g., weekly) and a late-payment remedy
- State that you may pause service if invoices go unpaid
- Keep copies of every rate confirmation tied to your invoices
- Consider requiring payment before releasing certain paperwork
The 'You're Not a Broker' Clause
Your agreement should explicitly state that you act as the carrier's agent and are not operating as a freight broker. This matters legally: brokers require MC Authority and a $75,000 surety bond. A well-drafted dispatch agreement makes clear you are providing back-office services to the carrier, not brokering freight.
Use a Template, Then Customize
Start from a solid dispatch agreement template so you're not drafting from scratch, then have an attorney tailor it to your situation and state. A clear contract is the cheapest insurance you'll ever buy.
Frequently Asked Questions
Do freight dispatchers need a contract with carriers?
Yes — a written dispatcher–carrier agreement protects your fee and defines responsibilities for both sides. Working without one is the most common reason dispatchers don't get paid for loads they booked.
Should a dispatcher agreement be exclusive?
It can go either way. Exclusive agreements mean you handle all of a carrier's dispatching; non-exclusive lets them use multiple dispatchers. State which applies clearly so expectations are aligned from day one.
Does a dispatch agreement make me a freight broker?
No. A properly written dispatch agreement states you act as the carrier's agent, not as a broker. Brokering requires MC Authority and a $75,000 bond; dispatching under a service agreement does not.
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Michael Rivera
3PL freight broker with 10+ years experience and the lead instructor at Dispatcher Pro Academy.