OPERATIONS CIRCULAR #1

STATEMENT OF SERVICES PROVIDED

Effective Date: September 1, 2004

  1. Tennessee Express, Inc. (TNXP), is a licensed for-hire carrier holding authority pursuant to MC-140539, DOT 036777.
  2. Governing Publications
    1. TNXP Motor Freight Rate Catalogue
    2. TNXP Rules Circular TNXP-100
    3. Standard Truckload Bill of Lading. Other shipping documents executed by driver as receipt for goods only.
    4. Mileage rates based on ALK Associates Version 2000, PC Miler Practical Miles.
    5. National Motor Freight Classification 100
  3. Insurance Information and Liability Limits
    1. PI and PD (personal injury and physical damage)
      1. $1,000,000 per occurrence limit, BMC-91X on file
      2. Insurer, Security Insurance, Inc. Certificate of insurance available upon request.
    1. Cargo Liability
      1. Carmack, agreed released evaluation
      2. Insurer Security Insurance, Inc. Certificate of insurance available upon request.
      3. Carrier liability for cargo over $250,000 by special request.
  4. Claims Processing and Statute of Limitation - General principles of Federal commerce law apply. See Elmore v. Stahl, 377 U.S. 134; STBOL and 49 C.F.R. §370. Claims must be filed within 9 months.
  5. Payment of Freight Charges - Due 30 days from date of invoice without offset; PODs provided upon request; finance charge is 1.5% per month on delinquent accounts with collection charge of 25% per shipment.
  6. Pallets - Provided by special arrangement.
  7. Third Party Billing - Provided for shipper's/beneficial owner's convenience with recourse.
  8. Non-Back Solicitation of Intermediaries - As otherwise agreed.
  9. Weight Limitations - 45,000 lbs. per truckload, or as otherwise agreed.
  10. Simplified Pricing - Unless otherwise indicated, all common carrier shipments are rated as Freight All Kinds for named customers and are subject to:
    1. Maximum cargo liability of $6.25 per pound or $250,000 per truckload shipment, whichever is less.
    2. Shipper load and consignee unload of cargo.
  11. Alternative Rates Available - Shipper may obtain rates for shipments with higher release values from Carrier's Director of Pricing by calling 615-780-3248. Any such alternative rate shall be reflected by the insertion of the higher release rate value and appropriate tariff item on the bill of lading at time of pick-up.
  12. Inadvertence Clause - If a shipper declares a value exceeding $6.25 per pound or $250,000 per truckload without insertion of the corresponding tariff item, the shipment will not be accepted, but if the shipment is inadvertently accepted, it will be considered as being released to a value of $6.25 per pound or $250,000 per truckload, whichever is less and the shipment will move subject to such limitation of liability.
  13. Remedies - Possessory lien rights apply to violation of credit terms.
  14. Chassis Rental - $15 per day starting from day released from rail/port and ending when chassis is released from rail/port. 2 days minimum - (based on availability), plus necessary drays to position and return chassis. Tri-axle chassis - $120 to position and return chassis, plus .06 per round trip mile (plus round trip rate).
  15. C.O.D. Fee - $25 minimum; 2% of C.O.D. amount
  16. Driver Detention - Free Time: Local to 25 miles - 1 hour; 26 miles and up - 2 hours. After free time expires, $22.50 per quarter hour.
  17. Driver Count, Load/Unload - $15 per quarter hour. Time begins when the driver is available for loading or unloading, or at the appointment time.
  18. Drop or Bobtail Charge - Free - when the radius is 15 miles or less. Minimum charge $41. Up to 50 miles, total bobtail miles @ $1.15 per mile. Over 50 miles, use the normal rate. (Exception: Atlanta, GA commercial zone - free drop only within I-285 loop, all other points will be the normal rate.)
  19. Per Diem -
  20. CARRIER'S TRAILERS:

         Free time - 24 hours
         Charge - $50 per 24 hour period or fraction thereof.

    INTERMODAL EQUIPMENT:

         Free time - Shall be the same as designated by the equipment lessor.
         Charge - Shall be the same as designated by the equipment lessor plus a
              10% handling fee for the carrier.

  21. Stop Off Charge - $70 per stop, excluding the point of origin and final
  22. destination.
  23. Storage on TCW Yard - One way dray to yard plus $5.00 per day.
  24. Weighing Light and Heavy - $33 to weigh both empty and loaded and furnish scale tickets.
  25. Surcharge for Hazardous Material Loads - $100 surcharge on each Hazardous Materials load handled.
  26. Surcharge for Overgross Loads - $100 surcharge plus permits on those exceeding 80,000 lbs. gross weight. Permit costs per state as indicated on "Overweight Permits By State" chart (#25).
  27. Overweight Permits by State


  28. STATE

    PERMIT COST

    MAXIMUM WEIGHT

    COMMENT

    ALABAMA

    $50

    100,000

    ANNUAL AVAILABLE

    ARKANSAS

    $70

    90,000

    NO ANNUAL AVAILABLE

    FLORIDA

    $25 + .30/MILE

    95,000

    ANNUAL AVAILABLE

    GEORGIA

    $50

    100,000

    ANNUAL AVAILABLE

    LOUISIANA

    $25 + .30/MILE

    95,000

    ANNUAL AVAILABLE

    MISSISSIPPI

    $20 + .75/MILE

    95,000

    ANNUAL AVAILABLE

    NORTH CAROLINA

    $30

    94,500

    ANNUAL AVAILABLE
    ROUTE SPECIFIC

    SOUTH CAROLINA

    $40

    90,000

    ANNUAL AVAILABLE

    TENNESSEE

    $35 + .30/MILE

    90,000

    ANNUAL AVAILABLE
    ONE ROUTE PER PERMIT

    VIRGINIA

    $25

    90,000

    NO ANNUAL AVAILABLE




    				GROSS WEIGHT			TANDEM WEIGHT
    
    ALABAMA				100,000 LBS			44,000 LBS
    ARKANSAS			 90,000 LBS			40,000 LBS
    FLORIDA				 95,000 LBS			44,000 LBS
    GEORGIA				100,000 LBS			50,000 LBS
    LOUISIANA			 95,000 LBS			40,000 LBS
    MISSISSIPPI			 95,000 LBS			42,000 LBS
    NORTH CAROLINA			 94,500 LBS			50,000 LBS
    SOUTH CAROLINA			 90,000 LBS			40,000 LBS
    TENNESSEE			 90,000 LBS			40,000 LBS
    VIRGINIA			 90,000 LBS			44,000 LBS
    
  29. FUEL SURCHARGE - Linehaul charge will be subject to a fuel surcharge as provided below. The amount of the fuel surcharge will be determined by the U.S. National Average On-highway Diesel Price as provided by the U.S. Department of Energy (D.O.E.). The current On-highway Diesel Price may be obtained by calling 1-202-586-6966 (24 hours per day) or on the Internet at http://www.eia.doe.gov/oil_gas/dslpriwk.txt. The prices will be published on our web page at www.tcwonline.com. The prices are updated Monday at 4:00 pm EST.
          EXAMPLE: D.O.E. U.S. National Average On-highway Diesel Price announced on MONDAY, 1/31/00 will
          be used to determine the Fuel Surcharge which will be reflected on our invoices dated TUESDAY, 2/1/00.

                              WHEN THE D.O.E. U.S. NATIONAL               THE FUEL SURCHARGE ON
                              AVERAGE ON-HIGHWAY DIESEL                  LINEHAUL WILL BE:
                              PRICE IS:

                                        At Least             But Less Than               T/L                        LTL

$1.20

$1.25

2%

1%

$1.25

$1.30

3%

1.5%

$1.30

$1.35

4%

2%

$1.35

$1.40

5%

2.5%

$1.40

$1.45

6%

3%

$1.45

$1.50

7%

3.5%

$1.50

$1.55

8%

4%

$1.55

$1.60

9%

4.5%

$1.60

$1.65

10%

5%

$1.65

$1.70

11%

5.5%

$1.70

$1.75

12%

6%

$1.75

$1.80

13%

6.5%

$1.80

$1.85

14%

7%

$1.85

$1.90

15%

7.5%

$1.90

$1.95

16%

8%

$1.95

$2.00

17%

8.5%

$2.00

$2.05

18%

9%

$2.05

$2.10

19%

9.5%

$2.10

$2.15

20%

10%

$2.15

$2.20

21%

10.5%

$2.20

$2.25

22%

11%

$2.25

$2.30

23%

11.5%

$2.30

$2.35

24%

12%

$2.35

$2.40

25%

12.5%

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