Dispatcher-Carrier Contract Template

This template is not legal advice. Have a lawyer review it for your state.

The blanks below follow factors in FMCSA's June 16, 2023 Federal Register notice, Definitions of Broker and Bona Fide Agents (88 FR 39368). They are not a complete agreement, and they do not add clauses FMCSA did not describe. The background is in how to become a truck dispatcher.

What FMCSA expects in the written agreement

49 CFR 371.2(b), as quoted in the guidance, requires a preexisting agreement for a continuing relationship, with the agent performing duties under the carrier's directions. FMCSA's factor for skipping broker authority adds that the contract should clearly appoint the dispatch service as the carrier's agent and should specify insurance and liability.

Look the carrier up before you fill in the name. Use the FMCSA carrier lookup so the USDOT or MC number on the agreement matches the Company Snapshot.

Sample dispatcher-carrier agreement

Parties

• Dispatcher: [legal name]
• Motor carrier: [legal name]
• USDOT number: [from the Company Snapshot]
• MC/MX number, if any: [from the Company Snapshot]

Appointment

The motor carrier appoints the dispatcher as its agent. The dispatcher performs the duties in this agreement under the carrier's direction. The relationship is continuing, not a one-load introduction. This tracks 49 CFR 371.2(b) as FMCSA quoted it on June 16, 2023.

Insurance and liability

[Write the insurance and liability responsibilities of the dispatcher and of the motor carrier. FMCSA says the contract should specify them. TODO: the guidance does not list required policy types or dollar limits for a dispatch service. Do not copy a number from somewhere else into this blank.]

Compensation

The motor carrier pays the dispatcher [method or amount]. The dispatcher does not bill or accept compensation for a load from the broker, a third-party logistics company, or a factoring company, and is not an intermediary in that payment. FMCSA lists payment from the carrier, and not from the broker or factor, as a factor for operating without broker authority. FMCSA does not set the fee.

Loads

The dispatcher sources loads for this motor carrier only, says so when arranging the shipment, and does not assign or arrange for another motor carrier to move the load.

Shipping contracts

The dispatcher is not a named party on the shipping contract. FMCSA lists being a named party as a factor that indicates broker authority is required.

Tax reporting

[1099 from the motor carrier, or W-2 employee, as FMCSA's factor describes. TODO: this is not tax advice. Ask a tax preparer which form applies.]

Term

Starts [date]. Ends when [write the ending rule]. TODO: FMCSA's guidance does not set a notice period or a state-law termination rule.

Pay, loads, and who you represent

If you represent more than one motor carrier, FMCSA says you are not automatically a broker, but choosing which carrier gets a load is allocation of traffic and does not fit the bona fide agent definition. Do not leave that choice to a verbal habit. If the carriers' freight overlaps and you pick between them, the guidance says to obtain broker authority. Read the examples in how to become a truck dispatcher.

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This is not legal advice

This template is not legal advice. Have a lawyer review it for your state.

FMCSA also says the June 16, 2023 document itself does not have the force and effect of law. A lawyer in your state has to tell you whether this wording is enough for your facts.

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