AAM BLOG
Discover the pros and cons of self-dispatching for owner-operators.
Weigh cost savings, control, and time investment to decide if self-dispatching is right for you.
Introduction
When the trucking market declines, the role of a skilled dispatcher becomes critical. They can significantly impact your ability to secure the best loads and maximize earnings. However, an inexperienced dispatcher can lead to financial difficulties. This has driven many owner-operators to consider self-dispatching. They believe their driving experience equips them to negotiate better, find higher-paying loads, and plan routes more efficiently. But is self-dispatching the right move? Let’s delve into the pros and cons.
Pros of Self-Dispatching
Cost Savings: Dispatchers typically charge 2-10% of the gross load income. By self-dispatching, you eliminate these fees and retain more of your earnings. This approach works well if you can secure high-paying loads; otherwise, the savings are negated by lower income.
No Forced Dispatch: In companies without a ‘no forced dispatch’ policy, drivers may feel pressured to accept undesirable loads. Self-dispatching frees you from this issue, allowing you to choose only the loads you want.
Learning a New Skill: While challenging at first, gaining dispatching experience can be valuable. Many top dispatchers started as drivers, and this skill can open new career opportunities.
Cons of Self-Dispatching
Time-Consuming: As an OTR trucker, your job is already demanding. Adding tasks like negotiating with brokers, tracking Hours of Service (HOS), and booking loads can significantly extend your working hours.
Increased Stress and Burnout: The additional responsibility of self-dispatching can lead to higher stress and burnout, impacting your overall well-being and safety on the road.
Lack of Established Connections: Dispatchers often have industry relationships that provide access to better-paying loads. Self-dispatchers might miss out on these opportunities, potentially earning less.
Risk of Poor Load Selection: Without the specialized knowledge of experienced dispatchers, you might choose less profitable loads or struggle to negotiate better rates, leading to lower earnings and financial instability.
Is Self-Dispatching Worth It?
If you’re unwilling to take on extra effort and stress, self-dispatching may not be worthwhile. It can be beneficial if you have dispatching experience or strong industry connections, but the overall impact should be carefully considered. We recommend that OTR truckers work with skilled dispatchers to maximize earnings and focus on driving without added worries.
Self-Dispatch vs. Using a Dispatch Service
Success in trucking involves balancing numerous tasks, such as finding loads, negotiating rates, and managing compliance. Self-dispatchers handle all these tasks, which can be suitable for those who enjoy planning and have industry experience. However, if you need assistance with these tasks, a dispatch service can lighten the administrative load.
Is Self-Dispatch Right for You?
Self-dispatching can save money on each load, foster relationships with brokers, and give you control over your operations. However, it requires time and resources, especially for those new to the industry. You must manage all issues independently, which can be challenging.
Is Using a Dispatch Service Right for You?
For busy truckers or those new to the industry, a dispatch service can be invaluable. They handle administrative tasks, potentially increasing your earnings by negotiating better rates and providing strategic advice. Research and choose a reliable service, as they become an extension of your company.
Costs
Self-Dispatch: Mainly involves your time and possible subscription fees for load boards.
Dispatch Service: Fees range from 5% to 10% of the load’s gross pay, justified by the time savings and additional services provided.
The choice between self-dispatching and using a dispatch service depends on your personal preferences and business goals. Self-dispatching offers autonomy and potentially higher earnings, while a dispatch service simplifies operations and allows you to focus on driving. Carefully weigh the pros and cons to make the best decision for your trucking business.
Frequently Asked Questions
What are the main advantages of self-dispatching? The main advantages of self-dispatching include cost savings, no forced dispatch, and the opportunity to learn a new skill.
What are the disadvantages of self-dispatching? The disadvantages include being time-consuming, increased stress and burnout, lack of established connections, and the risk of poor load selection.
How much do dispatch services typically charge? Dispatch services typically charge between 5% and 10% of the load’s gross pay.
Can self-dispatching increase my earnings? Self-dispatching can potentially increase your earnings if you can secure well-paying loads and manage all related tasks efficiently.
Is self-dispatching suitable for new drivers? Self-dispatching can be challenging for new drivers due to the time and resource investment required. It may be more suitable for experienced drivers with strong industry connections.
How do I choose a reliable dispatch service? Research and choose a dispatch service with a good reputation, positive reviews, and proven success in negotiating better rates and providing strategic advice.
Conclusion
The decision between self-dispatching and using a dispatch service is crucial for your trucking business. Consider your experience, industry connections, and willingness to take on additional responsibilities. By weighing the pros and cons, you can make an informed choice that aligns with your business goals.