Just amazing. I am still shocked that some don't realize this is just a high dollar hobby.
What happened to Eclipse Expediting?
- Thread starter mikedrives191
- Start date
But Dave a simple nickle..... 05 turns into $5,000 over a 100,000 mile year....thats not really chump change at the CV level....
But Dave a simple nickle..... 05 turns into $5,000 over a 100,000 mile year....thats not really chump change at the CV level....
Very true. No one knows better than I when starting in the vending industry. Use to sell gumballs for a penny. lol They add up when doing 48 states.
But like trucking, it starts with the first penny.
See, there is something to that "there's my penny in pond".
paullud
Veteran Expediter
Under funded companies are a plague on the freight industry. It doesn't matter if it's on the broker or trucking side.
Murraycroexp
Veteran Expediter
And just like most others, this is a multi-faceted story.
Just amazing. I am still shocked that some don't realize this is just a high dollar hobby.
I think your statement is really , really , close to the truth. Expediting imho, is a fun job, but, as far as raising a family on it in a cv, forget that. It is a nice place to go when your to old to be interviewed by a 30 year old and your 55. Bet many of you have been there on that kind on interview, aint it fun??
55 is old?......LOL Outch
mdpettrey
Seasoned Expediter
I know this thread was started about Eclipse and yes they obviously had some insurance issues and that's why they shut down. I'm confused on why they would say the "Bigger Carriers" had them "Black Listed" when they were they were the ones cutting corners on insurance coverage? This has nothing to do with "Bigger" carriers, but yet only about people committing insurance fraud and getting caught doing it. Have the rates gone up just because Eclipse went out of business, well no it will take a lot more than them going out of business to help the rates get back to where there should be. I'm sure as many know they were not the only company that was running this way, but trust me the others that are still running this way won't make it long because the insurance companies, and load providers are aware of these risks.
Let me give you an example as being the broker....I give company X a load and God Forbid their driver gets in a bad or fatal accident, and I hate even giving this example but it has happened. Now mind you they lied to their insurance company about what their drivers are actually doing or the unit isn't even covered under their policy, and in turn the insurance company denies the claim. Now what happens... I get sued, my customer gets sued, and even down the line to the actual shipper will get sued. BTW again this has happened!!! I had a carrier that used to run for us and they were operating almost 200 units and when I dug into their policy I found they actually only insured 1 unit and it was a PT Cruiser!!! I know I don't want to lose my company over night because somebody sent me a bogus insurance certificate. We all have the responsibility to do the right thing, and if we all do the right thing then we should all be successful in the long run. The moral of my rant is they only went out of business because of their own poor choices.
Let me give you an example as being the broker....I give company X a load and God Forbid their driver gets in a bad or fatal accident, and I hate even giving this example but it has happened. Now mind you they lied to their insurance company about what their drivers are actually doing or the unit isn't even covered under their policy, and in turn the insurance company denies the claim. Now what happens... I get sued, my customer gets sued, and even down the line to the actual shipper will get sued. BTW again this has happened!!! I had a carrier that used to run for us and they were operating almost 200 units and when I dug into their policy I found they actually only insured 1 unit and it was a PT Cruiser!!! I know I don't want to lose my company over night because somebody sent me a bogus insurance certificate. We all have the responsibility to do the right thing, and if we all do the right thing then we should all be successful in the long run. The moral of my rant is they only went out of business because of their own poor choices.
jamesr
Active Expediter
Lots of talk and speculation on why Eclipse shut down the carrier side and how business was done.
Insurance was the cause and not for the fact of lack of of coverage.We tried to get the coverage that they were requiring that would have costed a sum per driver per month plus a premium just to start the policy. Now before I get into that some think that we were making money hand over first so lets go through some math Eclipse worked off a % base and driver's always chose their price (if you were not able to, we were never notified of it). For example, take a load paying 1000.00, driver got 80% so 800.00, most dispatchers were at 10% so thats 100.00 so that left 100 to the company right... Wrong throw in factoring cost at 0.15 % so take 15.00 off that so thats 85.00 to the company and that 85.00 helps pay for billing 2nd and 3rd shifts and other office expense. Not including the personal loans we provided to some drivers that were in need. Them 1000.00 loads far and few brokers forever wanting to sell that load cheaper. Now back to the insurance problem after 3 months and 3 different agents underwriters pulling quotes we heard from one on why was they thought we were lying on the trucks were were going to dispatch. You ask where would they get that idea, well at first we asked for a quote for all drivers that were working with Eclipse at the time 140. The company could not afford this cost for a premium not to mention the liability insurance for them. So we put it to the drivers of putting a cost on them per month as a last resort so we called every driver about 1/3 said yes about 1/3 said maybe and about 1/3 said NO. So we put the about 30 drivers that said yes and sent in the info for those drivers for the agent for a quote. So for trying to do the right thing we lost our authority being we were not able to get the insurance needed. To note on the closing of the carrier side All drivers were paid in full for the loads they had with Eclipse Expediting. So between putting the drivers first to try and help them making a living and the Insurance underwriters that like hearsay from others This is what happened... So if they don't like how you work you might be next until there's nothing left of the American Dream... and drivers will suffer when they are stuck working for companies that in the end could care less. PS: Drivers are people with names not just a number on the board.
Insurance was the cause and not for the fact of lack of of coverage.We tried to get the coverage that they were requiring that would have costed a sum per driver per month plus a premium just to start the policy. Now before I get into that some think that we were making money hand over first so lets go through some math Eclipse worked off a % base and driver's always chose their price (if you were not able to, we were never notified of it). For example, take a load paying 1000.00, driver got 80% so 800.00, most dispatchers were at 10% so thats 100.00 so that left 100 to the company right... Wrong throw in factoring cost at 0.15 % so take 15.00 off that so thats 85.00 to the company and that 85.00 helps pay for billing 2nd and 3rd shifts and other office expense. Not including the personal loans we provided to some drivers that were in need. Them 1000.00 loads far and few brokers forever wanting to sell that load cheaper. Now back to the insurance problem after 3 months and 3 different agents underwriters pulling quotes we heard from one on why was they thought we were lying on the trucks were were going to dispatch. You ask where would they get that idea, well at first we asked for a quote for all drivers that were working with Eclipse at the time 140. The company could not afford this cost for a premium not to mention the liability insurance for them. So we put it to the drivers of putting a cost on them per month as a last resort so we called every driver about 1/3 said yes about 1/3 said maybe and about 1/3 said NO. So we put the about 30 drivers that said yes and sent in the info for those drivers for the agent for a quote. So for trying to do the right thing we lost our authority being we were not able to get the insurance needed. To note on the closing of the carrier side All drivers were paid in full for the loads they had with Eclipse Expediting. So between putting the drivers first to try and help them making a living and the Insurance underwriters that like hearsay from others This is what happened... So if they don't like how you work you might be next until there's nothing left of the American Dream... and drivers will suffer when they are stuck working for companies that in the end could care less. PS: Drivers are people with names not just a number on the board.
Murraycroexp
Veteran Expediter
Wow, take a 24 hour break from a thread ans SEE what you miss?!?!?! LOL!!
Yeah, carriage returns.
Maybe the company should have charged the customers an appropriate rate to be able to pay for the proper REQUIRED insurance coverages and to be able to pay the owner operators. Seems pretty basic to me. The American Dream was built on honest fair competition, not trying to cut corners and cheat the system. But it's your story so tell it as you will.
So, you didn't have it, but because of what it would have "costed" it wasn't a problem? I'm confused...
American Dream? Your response sounds more like what has become the American Way, "it's not my fault! It was 'them'!"
We all have the right to pursue the American Dream, but there's no guarantee we'll succeed.
Is this like driving illegal to claim you have faster service? The reality is, rogue carriers cost everyone whether through cheap rates or paying higher insurance premiums to subsidize the ones who won't. Almost like Obama care.lol
Surprised nobody picked up on the "Factoring" comment, factoring is another term for Under Funded,
I don't know I think bigger carriers must have overdraft protection on their payroll accounts as opposed to a single operator factoring there BOL