Unpacking the Causes of Dispatch Delay
Every truck driver knows the frustration of waiting for the next load. It can feel like an eternity, and sometimes, dispatch efficiency seems like a foreign concept. But what if there’s more to the dispatch delay than meets the eye? Inspired by the podcast “Driven Too Far” with host Andrew Winkler, Chief Carriers is pulling back the curtain on the behind-the-scenes world of trucking dispatch.
Drivers often experience delays in getting their next load, and we acknowledge the common feeling among drivers that dispatch isn’t organized. We’ll explore the many intricate steps involved before a load can even be booked and the specific processes that cause dispatch delay. We’ll also highlight the distinction between different types of freight and showcase the importance of dispatch efficiency for everyone involved in freight transportation.
Contract Freight vs. Spot Market
When you don’t know, from a driver’s seat, what’s going on behind the scenes in dispatch, it just seems like nobody’s got their act together.
-Andrew Winkler, Chief Carriers General Manager
To fully grasp the reasons behind dispatch delay, it’s necessary to understand the two primary ways freight is secured: through contracts or on the spot market. Each has its own implications for how quickly a driver can get loaded.
Contract Freight: The Stable Foundation
Contract freight is the stable backbone of many trucking operations. It’s direct freight from customers, with no freight broker or third-party involvement. These arrangements are typically negotiated for a year or longer, often involving consistent loads in specific lanes at set rates.
Trucking companies generally prefer contract freight due to direct relationships with shippers and customers. It provides stability and a clear operational rhythm, enabling better planning and resource allocation. This leads to more predictable income and fewer instances of dispatch delay.
Spot Market Freight: The Necessary Variable
Spot market freight is transactional, per load, and often involves a freight broker. While contract freight provides stability, spot market freight serves a crucial, albeit more variable, role.
Its primary use is when a truck needs to be moved back into a normal traffic lane after delivering a contract load in an area without immediate return freight. This is where load boards become invaluable, acting as a marketplace for available loads.
If I send a truck out to a certain point in the country and I don’t have any customer freight out of that area, I need to do something to get you loaded back into a normal traffic lane for our company – that’s really where broker freight comes in.
-Andrew Winkler
Trucking companies prefer not to have a high percentage of spot market freight because brokers take a cut (10-20% or more) from the middle of the freight rate. This reduces the carrier’s overall profit margin.
However, independent owner-operators often rely on spot loads from load boards to stay busy. This reliance can sometimes lead to more dispatch delay as individual loads are sought and negotiated. The dynamic nature of the spot market means rates fluctuate, and securing a profitable load can take time.
RELATED: Freight Volumes vs. Truck Capacity: The Battle of Supply and Demand
How Securing a Spot Market Load Leads to Dispatch Delay
Securing a spot market load involves a series of detailed steps, each of which can contribute to dispatch delay. This is where dispatch efficiency is truly put to the test.
1. Initial Load Evaluation
Before any other steps, dispatchers must perform a rigorous initial load evaluation where each decision is made with the long-term goal of keeping the truck moving profitably.
- Dispatchers must determine if the load pays enough to justify the trip and cover costs, including fuel, driver pay, and overhead.
- Dispatchers confirm that the load matches available equipment (dry van, reefer, flatbed) is crucial to avoid issues later. Trying to haul a flatbed load with a dry van, for example, would be a quick route to wasted effort and further delays.
- Dispatchers determine if the load moves the truck back toward normal freight lanes, or leaves the driver stranded in an undesirable location, leading to additional delay on the next leg.
By strategically planning each run, dispatch ensures that drivers receive profitable loads that match their equipment and also prevents wasted time and unnecessary deadhead miles.
RELATED: A Day in the Life of a Chief Carriers’ Dispatcher
2. Vetting the Broker
If it’s a new broker freight opportunity, the finance or credit department must conduct a credit check to ensure the client can pay their bills on time. This essential step, while critical for financial security, can cause a delay. But it’s a step well worth the time because no carrier wants to haul a load only to struggle to get paid.
Somebody’s going to have to pull the history on the broker and run a credit check. There’s no reason to move somebody’s freight if they can’t pay the freight bill.
-Andrew Winkler
3. Paperwork Exchange
To legally move broker freight, both the carrier and the broker must exchange paperwork to confirm authority to move/broker freight and ensure proper credentials. This often involves reviewing specific freight contracts, which adds to the time before a load can be officially booked. This thorough review process safeguards both parties and ensures compliance with regulations.
4. Rate Negotiation
The dispatcher negotiates the freight rate with the freight broker, often using tools like Truckstop.com or DAT to determine average rates in that lane. The goal is to achieve a profitable rate while remaining competitive. This back-and-forth in negotiating freight rates can be a significant source of dispatching delay, as both sides aim for the best possible outcome.
5. Timeliness Check
Dispatch confirms that pickup and delivery times are reasonable and align with driver availability and regulations, specifically looking to avoid long waits for delivery. A load might pay well, but if it requires the driver to sit for hours waiting to be unloaded, the effective hourly rate can plummet.
RELATED: The Hidden Costs of Detention Time: How It Impacts Your Bottom Line
6. Final Paperwork Review
Before confirming, the dispatcher double-checks all details on the load document from the broker, including legal weight and any fine print — a critical step in the trucking dispatch process. This fine print often includes clauses about immediate proof of delivery requirements and potential fines for delays.
Some brokers use these clauses to reduce their payout to the carrier, which dispatchers must be vigilant about and review carefully. This meticulous review is essential to protect the carrier from unexpected charges or reduced payments.
The fine print can be a killer. If we come across a broker that feels like they’re just finding ways to fine you and lower what they’re paying you… that’s not who we want to do business with.
-Andrew Winkler
RELATED: How Trust Shapes the Driver-Dispatcher Relationship
Dispatch Delay is Part of the Process
Dispatch teams work actively to load drivers as quickly as possible. The dispatch delay that drivers sometimes experience isn’t because dispatchers are “goofing around”—it’s because they’re conducting necessary due diligence for all spot market freight. These extensive steps and checks involved in the trucking dispatch process ensure the company gets paid for hauling freight and protect the driver and carrier from potential issues.
For over 50 years, Chief Carriers has been a leader in the flatbed trucking industry. Our extensive industry experience enables us to fully understand every step in trucking dispatch, and we continuously strive to optimize these processes for our drivers. When you partner with Chief Carriers, you’re not just getting a load; you’re benefiting from decades of dedication to operational excellence and a commitment to superior dispatch efficiency.
For more insight into the topic of dispatching delays, listen to our Driven Too Far podcast episode, “Why Am I Always Waiting? Decoding Dispatch Delays.”
