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Is Freight Dispatching Illegal?

When it comes to the trucking and transportation industries, worries can pop up on operating legally and working with reputable partners — whether they’re freight brokers or dispatchers. Thus, in order to protect your fleet and your clients, it’s important to perform the proper research and to be careful about whom you go into business with. At Inchy Finch Dispatch Services, we proudly operate legally in 48 states and help small transportation fleets increase their business and client base. Today on our blog we are going through a few critical aspects of the legal side of our business and are explaining how you can best protect yourself!

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Short Answer: It Depends

In short, freight dispatching is not illegal as long as the dispatching company in question has the proper carrier and brokering authority. It’s absolutely critical for freight dispatchers to be properly licensed by the FMCSA, or the Federal Motor Carriers Association, which is the governing body that deals with regulating and providing the safety of commercial motor vehicles. Dispatchers are in the clear as long as they do not practice as a freight broker. If this is the case, then there is no need to worry about your fleet and no need to worry if freight dispatching is illegal.

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What Exactly is Illegal?

The legality of this industry changes a bit when licensed and qualifications are thrown out the window and not followed properly. If a dispatcher operates as a freight broker, without receiving the correct licensing specific to that area of the industry, then that in itself is illegal; it is also illegal if a dispatcher is operating without proper authority from the FMCSA as stated above. If your fleet or business encounters a dispatcher that is not insured, it is often a sure-fire sign of trouble. It’s also illegal for a dispatcher to book a freight for a carrier without a pre-existing agreement stating such.

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Protecting Yourself From Illegal Practices

In order to prevent your fleet or your business from getting involved with shady business partners, it’s important to follow a few important steps. If you’re working with an individual or a freight dispatching agency that is outside of your own company, then make sure you interview them fully and that they can illustrate how they’re fully licensed, insured, and operate ethically. It’s also important to thoroughly research the legality surrounding both dispatchers and freight brokers in order to protect yourself! Sign a binding agreement with a dispatcher to prevent them from working with a different motor carrier, and thus engaging in illegal activity.

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Stay Protected with Itchy Finch Dispatch Services

Inchy Finch Dispatch Services understand how difficult it can be to work with high-quality, legitimate business partners when moving freight and when making a name in the transportation industry. For nearly 30 years, we’ve been helping small fleets grow their business by providing 100% legal route-planning, directional, and roadside assistance services. There is no need to worry about getting tangled up in illegitimate arrangements when you choose Inchy Finch Dispatch Services!

Discover all the benefits of partnering with Inchy Finch Dispatch Services online now and contact us anytime!