Glossary

Glossary of Leasing Terminology

As Needed Maintenance: Maintenance on customers' equipment in which the customer pays for all work performed on customers' equipment.

Box Vans: Type of truck that is generally used for parcel or small package delivery. It has a box mounted to the chassis that ranges in size, generally between 10' and 15' in length.

Casual Dedicated Carriage: Placement of a Driver and Tractor into an operation on a daily, weekly, or monthly basis. Generally the customer will use this driver to make local deliveries or shuttles, but the customer ALWAYS guarantees a minimum amount of work for the driver(s). The established minimum is 8 Hours per day, and the rate is generally an Hourly Rate.

Contract Maintenance: This is a service where the customer would pay a monthly retainer to HLC. This retainer would include in its price a predetermined number of PM's (preventative maintenance, i.e. oil change, etc.) per year on the customers' own equipment, and also allow them full use of our 24 Hour Emergency Breakdown Service. In addition, they may also bring their equipment in for any additional maintenance or non-maintenance related repairs at a predetermined shop rate, and parts mark-up.

Day Cab: Type of cab on a Tractor or Straight Truck for local use only, not equipped with a Sleeper Berth

Dedicated Contract Carriage: Long Term Contract established with customer. Purpose of this is to realize cost savings for the customers that come from the guarantee that resources will be used.

Driver Leasing: The customer leases the driver and places them in their own equipment. HLC only provides the assurance that the driver is on HLC payroll, and that we cover all applicable taxes, not auto liability insurance.

Dry Van Trailer: Type of trailer that is made for hauling dry (non refrigerated or heated) goods.

Equipment Leasing: Leasing of Equipment under a long-term agreement, executed by a contract.

Equipment Rental: Leasing of Equipment with no long-term agreement. Local or Regional Drivers (in Customers' Equipment): Drivers only, no equipment. See Driver Leasing.

Local, Regional, or Over the Road Drivers with Equipment & Dispatch: Hermann Leasing
Company will provide and invoice for the driver and equipment (usually on an hourly basis), inclusive of a dispatcher's time to manage that driver. An example would be if a customer is looking for a driver and equipment for a specific load or delivery, and wishes just to call the order into HLC, whereas the HLC dispatcher gets shipper, consignee, and 'bill-to' information, and dispatches a driver accordingly.

Local, Regional, or Over the Road Drivers with Equipment (Customer Dispatched): In this situation a customer would call for a driver & equipment to start at a specific time at their facility. Upon arrival, the customer would then dispatch the driver in his or her own operations. Under a Long Term Contract, the customer would relay start-time information directly to the driver each day, whose tractor is most likely domiciled at the customers' facility.

Long Term Contract: Contract that financially obligates the customer to a commitment of three or more years. The reason a customer would sign a Long Term Contract would be to realize the cost benefits from guaranteeing utilization of resources.

On-Site Transportation Manager: This is a manager who reports to our customers' facilities, and dispatches drivers in that operation from an office on-site. Most likely, this would be a private fleet setting, in which there are several HLC drivers with equipment domiciled on and reporting to our customers' facilities on a daily basis. The manager acts as liaison between HLC drivers and management and customers' personnel.

Reefer Trailer: Type of trailer that is made for hauling products that require refrigeration or heating.

Road Trailers: Trailers that are licensed and registered for road use, for the purpose of delivering goods.

Single Axle Tractor: Tractor used to haul dry van or reefer trailers for the purpose of delivering freight. This type of tractor has only two axles, or one·single rear axle, which limits its hauling capabilities. Single Axle tractors cannot exceed a GVWR (Gross Vehicle Weight Rating) of 64,000#. A Single Axle Tractor is good only for customers whose truckload freight does not exceed approximately 34,000# (weight of the freight only). Each truck and trailer combination has a different gross weight, and will therefore change the total weight of a load that can be loaded onto a trailer.

Sleeper Unit: Tractor equipped with a Sleeper Berth, allowing a driver to sleep in his truck. For delivering freight to consignees further away than would allow a driver to drive to the consignee, deliver the freight, and drive back to the shipper or home terminal in one workday. Also applicable for crosscountry deliveries.

Storage Trailers: Trailers that are not licensed for road use, and can only store goods while in one location. Special 'conveyance plates' are required to transport these trailers, and do not allow for the transport of goods.

Straight Trucks: Truck with box type storage mounted directly to the chassis (resembles a 'minitrailer' with a cab).

Tandem Axle Tractor: Tractor used to haul dry van or reefer trailers for the purpose of delivering freight. This type of tractor has three axles, or two tandem rear axles, which allows for greater hauling capabilities. Tandem Axle tractors cannot exceed a GVWR (Gross Vehicle Weight Rating) of 80,000#. A Tandem Axle Tractor is good for customers whose truckload freight is typically more than 34,000# but does not exceed approximately 46,000# (weight of the freight only). Each truck and trailer combination has a different gross weight, and will therefore change the total weight of a load that can be loaded onto a trailer.