Truck Dispatching Service Agreement: What It Is and Why You Need One
As an independent truck dispatcher, you may wonder if you need to have a dispatch service agreement with your clients. The answer is yes, and in this article, we will discuss what a dispatch service agreement is, why you need one, and how it can protect both you and your client.
What is a Truck Dispatching Service Agreement?
A dispatching service agreement is a contract between an independent truck dispatcher and a trucking company that outlines the relationship between the parties and covers their responsibilities. It is a legally binding agreement that specifies the terms and conditions of the dispatch services provided by the dispatcher.
Why You Need a Truck Dispatching Service Agreement?
There are three main reasons why you should sign a dispatch service agreement with your client: authorization, compensation, and liability.
Authorization: Your client must give you permission to act on their behalf, to call someone on their behalf to complete paperwork, and to book loads for them. If you don't have such permission in writing, then technically you are not authorized to do anything.
Compensation: You want to have clearly outlined how you will be paid for the work you do. It should be specified if you will be charging a percentage or a flat fee, the terms of payment, the form of payment required, and how soon your client will pay you. The agreement should also specify the consequences if the client does not pay you on time.
Liability: The agreement should specify that you will be providing an administrative type of service and that you will not be responsible for transporting any cargo. You should also point out that the safety of the operation is your client's responsibility, not yours.
By having a dispatch service agreement in place, you protect yourself from any legal disputes that may arise with your client.
What If My Client Doesn't Want to Sign the Agreement?
If your client is not willing to sign an agreement with you, it is probably best to move on. However, if you want to take it a step further, you can find out what their concern is. It could be the terms or the form of payment that they are not comfortable with. Talk to them and find out what their concerns are. Make them feel comfortable by explaining that you cannot operate without their authorization to act on their behalf.
Truck Dispatcher Training and Sample of Truck Dispatching Contract
Truck dispatcher training is essential to learn the necessary skills to become a successful dispatcher. As part of the training with LearnDispatch.com, you will receive a truck dispatcher contract sample that you can use as a guide to create your own agreement.
The sample dispatcher service agreement includes sections for authorization, compensation, and liability. By using the template of this dispatch service agreement, you can customize it to fit your needs and your client's needs, ensuring that both parties are protected.
Streamlining Dispatch Service Agreements with Electronic Signatures
In today's digital age, the process of signing and delivering agreements has become much easier and more efficient. Rather than emailing or faxing documents back and forth, companies can now utilize services like DocuSign to streamline the process. With DocuSign, contracts and agreements can be signed electronically, eliminating the need for printing, signing, and scanning documents. This can save time and money, and make the process much more convenient for both parties involved.
For example, our parent company Alfa X Logistics has implemented this modern approach to signing agreements. When prospective client is interested in our truck dispatching services, we send them a link to an online form that allows them to provide answers to questions necessary to create their Company profile. Once the client submits the form, our system generates a contract for the truck dispatching service with Alfa X Logistics based on the responses they provided. This process is quick, and efficient, ensuring that the agreement is signed and delivered without any unnecessary delays. Overall, utilizing modern document delivery methods like DocuSign can make the process of signing dispatch service agreements with motor carriers much simpler and more streamlined.
In conclusion, having a dispatch service agreement in place is crucial for protecting yourself and your clients. It ensures that everyone is on the same page and outlines the terms and conditions of the truck dispatch services provided by the independent truck dispatcher. Also, with modern technology, it has become easier than ever to sign and deliver such documents to your clients.
© By Roman Shmundyak May 2023
Are you thinking about becoming an independent truck dispatcher? LearnDispatch offers online truck dispatcher training courses which are suitable for people not familiar with transportation industry. Learn more about our training by visiting Training Details page or choose your course by clicking here.