The Benefits of New vs. the Hazards of Refurbished

Our customers’ reputation and livelihood depends on their ability to move goods safely and efficiently. Whether you’re a motor carrier or a freight forwarder, there’s too much at stake to risk your business and reputation on old, re-manufactured equipment.

A large portion of the fleet operating today is 25-30 years old, unsafe and needs to be replaced. In fact, the overall age and condition of the existing chassis fleet in the North American market is the biggest challenge facing the industry today.

New vs. Refurbished Chassis

“At the end of the day, a refurbished chassis is still an old chassis,” says Doug Hoehn, Executive Vice President of Chassis & Managed Assets at Milestone. “It may look good on the outside but you really don’t know how reliable it will be when the rubber meets the road.”

A refurbished chassis may be “like new,” but the reality is it’s an old, aging frame covered with standard zinc paint, which may or may not have radial tires (and may even have recapped tires) and may have 2-part, 5-spoke wheels which, if not installed properly, wobbles – creating a potential hazard on the road.

At Milestone, EVERY chassis is the most advanced chassis on the road. Our equipment is the most up-to-date and technologically advanced and features all new frame and components, powder coated paint (on all 2017 models and newer), LED lights, new OEM radial tires, ABS braking system and auto-inflation, hub-piloted disc wheels and no lube landing gear.

When it comes to safety, nothing is better than brand new.

Our nationwide network gives customers access to 30+ locations across the US, from New York and Atlanta to St. Louis and Los Angeles, and beyond. In addition, our customized leasing options give you the flexibility you need for your business.

It’s our mission to keep you moving. Safely, efficiently, and ensuring you peace of mind.

 

Read the Case Study – Quik Pick Express

 


 

Reliability, Delivered.

Outdated chassis is an industry-wide problem – stay ahead of the game with Milestone.

  • Customer: NRS

Request the Case Study

New vs. Refurbished Chassis: Brand New is Better for Your Bottom Line

No one wants to spend more to get less.

Unfortunately, with refurbished chassis you run the risk of older equipment failure and higher M&R costs – which can make deep cuts to your bottom line.

“You can give remanufactured equipment a paint job, put some new tires on and maybe even replace some of the mechanical things, but it’s still old – even 25, 30 years old,” says Doug Hoehn, Executive Vice President of Chassis & Managed Assets at Milestone.

M&R Cost Comparison

With a brand-new chassis, there is minimal to no M&R. When compared to new equipment, overall operating expenses for a refurbished chassis will still be higher. Over time, a new chassis is cheaper to operate because they do not have wear and tear and incur virtually no maintenance expenses.

For example, in a standard chassis pool in the Midwest, maintenance for one year for a Milestone chassis in the COCP (Chicago Ohio Pool) averaged $0.70 per day, compared to the average maintenance of the total pool at $4.44 per day.

In a standard one-year lease period, this means a Milestone chassis costs, on average, $255.50 over one year compared to an average total pool cost of $1,620.60 over the same period of time – making it over six times more expensive to lease a refurbished chassis vs. brand new.

Using a new chassis means you’ll stay on the road longer, reduce maintenance costs (and in turn reduce the amount of time a driver would have to wait for repair) and make substantial increases to your bottom line.

 

Read the Case Study – Quik Pick Express

 


 

Staying Nimble, Flexible.

Milestone’s open architecture plans are designed to meet our clients’ specific goals.

  • Customer: Quik Pick Express

Request the Case Study

Milestone Chassis

New vs. Refurbished Chassis: The Advantages of Radial Tires

Truck drivers must repeatedly replace their tires, as extensive time on the road causes natural wear and tear. Selecting top quality tires, fortified with the latest technology, is key to optimizing tire mileage.

At Milestone, all of our chassis are fitted with new OEM radial tires. Advantages for the driver include:

  • Efficient fuel consumption
  • Longer tread life
  • Improved traction and flotation
  • Improved cut resistance in the tread area
  • Runs cooler than bias tires

Radial vs Bias-Ply Tires

Of the two basic types of tires – radial vs. bias ply – radial tires are far superior in terms of safety and performance. For instance, radial tires feature steel cable beading for greater strength, multiple layers of steel chords at high angle for higher stability, and single ply, steel belt casing allowing for efficient heat dissipation.

According to research, an average tire service could cost up to $1,000 with a new tire, plus three hours or more spent from breakdown to getting back on the road.

“That’s a lot of time and money lost,” says Doug Hoehn, Executive Vice President of Chassis & Managed Assets at Milestone. “And not to mention a frustrated driver and even worse – an angry customer who was expecting an on-time delivery. You’re putting your business at risk on an over-used, thin-tread tire.”

Read the Case Study – SunteckTTS

 


 

The Real Cost of Time Wasted.

When rubber meets road, new chassis outperform refurbished.

  • Customer: SunteckTTS

Request the Case Study

Volume of Milestone Chassis

Milestone Fuels Broader Push to Attract Truckers with New Chassis

As reported in JOC.com, Milestone continues to lead and invest in new chassis equipment. Milestone’s fleet expansion is the latest initiative by a chassis supplier looking to create a niche by offering new, or high-end, equipment.

 

Milestone Equipment Holdings plans to nearly double the size of its fleet of mainly new marine chassis to close to 20,000 pieces of equipment over the next 18 months, underscoring the broader effort by some providers to attract truckers and their shipping customers with better fuel mileage, less chances of shipment disruptions caused by breakdown, and reduced repairs.

The company’s fleet expansion is the latest initiative by a chassis supplier looking to create a niche by offering new, or high-end, equipment. The focus reflects, in part, a growing demand by chassis users for an alternative to what some shippers and truckers see as the failings of the nation’s aging chassis fleet, much of which is in the daily rental sector and remains from when ocean carriers began selling their fleets a decade ago.

To read the full story click here.

 

SOURCE: JOC.com

Milestone Trailer Leasing Continues to Invest in Modern Equipment, Adds 1,500 Trailers to Expansive National Fleet

St. Charles, MO (June 6, 2018) – In a continued effort to expand its offering of personalized solutions for customers, Milestone Trailer Leasing has acquired leases for 1,575 dry vans from Heartland Express of North Liberty, Iowa. This move will add additional trailers – manufactured between 2014 and 2017 – equipped with tracking, tire inflation systems and lift pads to Milestone’s already expansive fleet spanning 25 markets.

“Milestone’s depth of industry experience, flexible deal structuring, lender relationships and nationwide branch network uniquely positions the company to craft and execute on this type of transaction,” says Don Clayton, Milestone President and CEO.

New Equipment, More Opportunity

The Milestone – Heartland deal provides Heartland the opportunity to move out of the leased late model fleet that was part of its July 2017 purchase of Interstate Distributor Company (IDC) while providing for a quick and orderly return of all 1,575 trailers to locations throughout Milestone’s nationwide branch network.  Additionally, the structure of the transaction allows Heartland to focus on the replacement of the IDC fleet with trailers made more to its specifications.

“This transaction allows Heartland to execute our financial and fleet strategies effectively and efficiently,” says Michael Gerdin, Heartland President and CEO. “Milestone’s extensive experience in large multi-location trailer fleet programs gave us confidence in working with the Milestone team.”

This announcement comes on the heels of Milestone’s expansive growth in the last three years – including the addition of $400 million of equipment. Inventory comprises 84,000 trailers, chassis, and containers provided to customers under flexible operating lease and rental structures. “The company continues to respond to customer and market demand,” says Clayton. “We are dedicated to driving results for our partners.”

 

 

About Milestone Equipment Holdings, LLC

Milestone is one of the largest and fastest growing transportation equipment leasing companies in the US, operating a diversified fleet of over 84,000 pieces of equipment including Domestic Chassis, Domestic Containers, Marine Chassis, Highway Trailers, Intermodal Trailers, Storage and Convention Trailers, Flatbed Trailers, Refrigerated Containers and Trailers, and other specialty equipment.

Headquartered in St. Charles, MO with an operational center in Chicago and 60+ commercial locations across the country, Milestone has acquired intermodal and highway fleets for our operations since 1995, while managing and leasing equipment on behalf of institutional and private investors. Our customers include trucking companies (over-the-road and LTL), third-party logistics (3PL) companies, package carriers, private shippers, railroads, steamship operators, beneficial cargo owners (BCOs), retailers, manufacturers and other companies throughout the transportation sector. The Milestone fleet allows all of these industry segments to maximize equipment utilization and transportation efficiency without the burden of owning their own equipment.

Our management services include committed peak and surge capacity programs, complex consulting and structured deals (including sale-leaseback transactions and fleet refresh programs), maintenance and telematics consulting and services, comprehensive management of third party transportation equipment assets, and equipment acquisitions and remarketing.

For more information, please visit: https://www.milecorp.com/

 

 

John Kiss

Meet John Kiss

John Kiss enjoys getting creative, especially when it comes to architecting deals for Milestone customers. “If we need to build X number of equipment, we will place that customer-specific order, we are not restricted,” he says. “Because we are flexible, it makes us a premier provider.”

Kiss, who serves as Director of Midwest, Gulf and Western Regional Sales, shares about the benefits of new vs. refurbished chassis, how Milestone goes where its customers are, and why he has a-ha moments every day.

PROFESSIONAL BACKGROUND

Tell us about your responsibilities as Regional Sales Director at Milestone Chassis.

I oversee the sales activity for the Midwest, Gulf and West regions. A lot of my time is spent in assisting with strategy and transitioning accounts for our clients. I’m responsible for overall growth for both revenue and volume, along with handling some of my own accounts.

What do you enjoy most about your job? 

I enjoy providing new and flexible solutions for each customer and the challenges that brings.  We think “customer first” and try to put ourselves in their position to think about where we can provide benefit and value.

NEW VS. REFURBISHED

There’s a lot of discussion in the industry around new vs. refurbished chassis. Why is this so important?

New equipment is built to the most updated standards and will always have components like anti-lock brakes, PSI and all the newest most modern technology.  Our chassis will always be built this way. When it comes to remanufactured, or refurbished, you are just doing that. You might get a new paint job and a few new things slapped on, like radial tires. But at the end of the day, it’s old.

At Milestone, we sell the total cost of operations of a brand-new chassis and we will share with customers what it costs to operate our equipment versus run of fleet or refurbished chassis. If you take our rates, combined with M&R expense for new chassis, versus rates for run of fleet or refurbished chassis and compare those two different costs, you will see a difference. If you look at the soft costs, time spent on the road, safety, keeping drivers happy, and listing those modern features, compared to the costs it takes to operate an older chassis – drivers being broke down by the side of the road and sheer lack of the modern equipment – once you stack those up, the argument becomes pretty compelling. It makes sense to use brand new premium chassis.

Has Milestone conducted studies on the benefits of using premium chassis vs. refurbished ones?

We have. We have done our own internal studies. There is also published data out there in terms of older pool chassis. You add those numbers together and you compare them, that’s what we drive home to customers. Our cost to operate a brand-new chassis is about .70 cents per day.

Compare that to $4-6 a day for standard run of fleet or refurbished equipment. Our customers know what to expect with Milestone. We are not changing specs on equipment. We will continue to build the most modern fleet. Nothing will be older than 2016.

FLEXIBILITY, CREATIVITY & GROWTH

Goals for the coming year in the Chassis Division?

Right now, we have 29 locations across the country. But we are looking at other locations where we need to have a presence. We’ve got a great network and great infrastructure in place. We can go to where our customers need us. The longer we do this, the more solutions we are able to offer. We’ve got the people in place with the experience; we’ve got the fleet in place to be flexible.

Are you looking at any other specific growth opportunities in other markets?

We see specific growth opportunity in multiple markets. It’s great that market conditions have dictated what people needed. The trucking community is getting more of a voice in the kind of equipment they want and need to use.

Your last a-ha moment?

Whether it’s location based or if it depends on the structure of the deal, we have a lot of those a-ha moments. These come from the discovery process and being able to provide customers with flexible, specific solutions. The company has the ability to architect deals to our specific customer’s needs. We have a-ha moments every day!

John Horgan

Milestone Names John Horgan as New Chief Financial Officer

CHARLES, MO (April 11, 2018) – Milestone is pleased to announce the addition of John Horgan as Executive Vice President and Chief Financial Officer, effective immediately. Horgan will be based in St. Charles, MO and will report directly to Don Clayton, President and Chief Executive Officer.

“I am very happy to join the Milestone team,” says Horgan. “The company has grown rapidly over the past few years and this management team has a clear vision for the future. I am excited to contribute to an organization that is so focused on serving its customers and creating opportunities for its team members.”

Prior to joining Milestone, Horgan served for eight years as CEO or General Manager of three companies in the manufacturing, distribution and software industries. Previously he served for 15 years in a CFO capacity, including large divisional roles at two public companies. During that time, Horgan was responsible for mergers and acquisitions, financing, SEC registrations, LEAN process improvements and margin optimization initiatives. He began his career at Ernst & Young, serving as an auditor and consultant for 12 years at a variety of publicly traded financial services and manufacturing companies.

“Over the past year, we have made great strides in building a world-class management team by promoting from within and adding top talent from outside the company,” says Milestone CEO Don Clayton. “John will be another tremendous addition to our team. His accomplishments as a finance leader speak for themselves, but just as importantly, his CEO experience will give him a broader perspective to help us further improve the customer experience and drive shareholder value.”

Horgan earned his Master of Business Administration and his Bachelor of Business Administration from Saint Louis University. He is a Certified Public Accountant and a Certified Information Systems Auditor.

 

About Milestone Equipment Holdings, LLC

Milestone is one of the largest and fastest growing transportation equipment leasing companies in the US, operating a diversified fleet of over 84,000 pieces of equipment including Domestic Chassis, Domestic Containers, Marine Chassis, Highway Trailers, Intermodal Trailers, Storage and Convention Trailers, Flatbed Trailers, Refrigerated Containers and Trailers, and other specialty equipment.

Headquartered in St. Charles, MO with an operational center in Chicago and approximately 75 commercial locations across the country, Milestone has acquired intermodal and highway fleets for our operations since 1995, while managing and leasing equipment on behalf of institutional and private investors. Our customers include trucking companies (over-the-road and LTL), third-party logistics (3PL) companies, package carriers, private shippers, railroads, steamship operators, beneficial cargo owners (BCOs), retailers, manufacturers and other companies throughout the transportation sector. The Milestone fleet allows all of these industry segments to maximize equipment utilization and transportation efficiency without the burden of owning their own equipment.

Our management services include committed peak and surge capacity programs, complex consulting and structured deals (including sale-leaseback transactions and fleet refresh programs), maintenance and telematics consulting and services, comprehensive management of third party transportation equipment assets, and equipment acquisitions and remarketing.

Milestone Trailer Leasing - Blue Transport truck docking at warehouse

Flexible Lease Promotion

Milestone Trailer Leasing provides personalized service in trailer leasing and rentals to customers every day. No matter how complex your needs, we make it happen. We provide customized solutions, open architecture deals and access to a fleet of 57,000+ trailers from our 25+ locations across the nation. Take advantage of our limited time Flexible Leasing Promotion.

Lease 2006-2009 Vintage Trailers

12-Month Lease: $230/Month*

24-Month Lease: $220/Month*

36-Month Lease: $210/Month*

 

 

 

*Requires credit pre-approval. Only for new contracts executed 1/1/2018 – 7/01/2018. Based on availability.

 

Request the Flexible Lease Promotion Brochure

Flexible Lease Promotion
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*Required fields.

It is required that before any company rents or leases equipment from Milestone that the company is able to exhibit proof of being in business for at least three (3) years.

 Trailer Equipment

  • Length: 53’ – 48’ – 45’ – 28’
  • Model: dry van, plate, composite plate, reefers, flatbeds (spreadaxle and closed tandem), specialized flatbeds (single drops, doubledrops)
  • Specifications/options: aluminum or translucent roof, roll or swing door, psi, e-track, log posts, tracking, skirts/ carb compliant, lift gate, single drop, double drop
  • Model years: We have a complete range of equipment to fit any application; factory direct NEW 2017’s, mid-range model years for economical over-the road use, and well-maintained older units for cartage and storage use
  • Specialized Equipment: If you have a specific equipment need, we will locate and purchase the trailers required, then design a custom lease plan for your company

 


 

Complete Credit Application

Download and complete the Credit Application Form here. It is required that before any company rents or leases equipment from Milestone that the company is able to exhibit proof of being in business for at least three (3) years.

Meet John Brockmeier

John Brockmeier is a veteran of the industry. With 30 years of experience in transportation and operations management, his wealth of knowledge and skills have helped to build superior teams that support Milestone Trailer Leasing’s comprehensive national network.

Brockmeier shares how he get got started, what urgent issues face the industry, and the secret to good leadership.

Professional Background

Tell us about your role as Director of Operations at Milestone Trailer Leasing. What are your responsibilities?

My responsibility is to oversee all the branches in our national network. I make sure our branches are keeping track of inventory and processing their purchase orders and I also do all of the auditing. I go through every branch, examine their paperwork and make sure everything is going smoothly. We have over 25 locations across the US, so I do a lot of traveling. At the end of 2017, I was traveling almost every week.

How did you get started in this industry?

I started in this industry in 1987 with AJF Trailer Leasing. My advisor from college had connections with the company and encouraged me to start my career there. I went to Chicago and worked there for four months, then moved to Louisville, Kentucky, then worked for the AJF branch in St. Louis. Later, I transferred to AJF corporate headquarters when they started a 24-hour road service. There were a lot of changes in the coming years – AJF merged with XTRA Lease until 1997, then went to Fruehauf Trailer Services from 2000 to 2003. They sold that division to Aurora Trailer Leasing, then sold to Milestone, which I joined in February of 2012.

Personalized Attention

The best thing about your job?

What I like about it is that every day will be different. I don’t know what’s going to be happening, what will unfold. It’s kind of fun. You walk into the day thinking, “What’s going to be the new problem that needs to be solved?”

Also, I enjoy interacting with our team. I like giving them ideas that I’ve used over the years and watching them apply it to their professional lives. One example of this is a trip I made to one of our branches in Chicago. I had completed an audit and unfortunately the personnel received a D rating. I watched the two employees take my ideas, reinforce what we needed to do and they went from a D rating in 2012 to an A in 2017.

What accomplishments are you most proud of?

I’m proud that I’ve been in this industry for 30 years. Coming to work for Milestone has been the highlight. XTRA is the big gorilla in this industry, but I wanted to be in a culture that felt more personalized. At Aurora, it was more accounting driven, if a deal wouldn’t work in their structure they just wouldn’t do it. But at Milestone, if a deal comes us and no matter how goofy it is, we will try to figure out how to make it work. I’ve been very happy to be here and figure out how to serve our customers. Watching these deals happen gives me my greatest sense of accomplishment.

Urgent Issues Facing the Industry

What are the most urgent issues facing the industry right now?

The lack of good drivers. There’s a general lack of accountability and caring about your equipment. I’ve been in this industry for 30 years now. If a driver has a light out, he would replace it. But now they call in for service and get it repaired for them. There’s just not enough quality drivers in the industry.

How is Milestone addressing those challenges?

We can’t recruit drivers for our customers but we can give them better trailers so their drivers don’t tear them up so badly.

On Leadership

Tell us your thoughts about leadership. What do you look for when building a team?

Good communication. From my standpoint, the ideas we put into place get clearly communicated to our field personnel. From there, if they don’t understand something, they need to communicate back with us, and make sure they are totally understanding what is expected of them. The key to a whole team is communications up to down and down back up.

Ahead of the Competition

What sets Milestone apart from the competition?

We are easier to work with than our competition. That is the long and short of it. Compared to other companies, and I’ve worked at a lot of them, they’re not even close.

What is the key to superior customer service?

Number one the people who are willing to do the things not during normal business hours. To make the customer happy. Of our two national accounts, FleetNet and Goodyear, drivers who break down can call into one centralized number to get help. Both vendors have my cell phone number. It’s all about accessibility. It’s a 24-hours-a-day, 365 days a year kind of working relationship. I never turn my cell phone off. I’ll take the call.

Volume of Milestone Chassis

East Coast Shippers: Milestone Has You Covered

Presence in NY/NJ

There are recent accounts that portray truckers as fatigued by the lack of access to quality chassis and rising cost of daily rentals. This creates an ever-challenging business climate for those moving freight out of the Ports of New York and New Jersey. Many are hoping that the talk of a new grey pool in this market will address issues and improve both quality and efficiency.

American Journal of Transportation

Doug Hoehn, Milestone Chassis Company Executive Vice President says: “Why Wait?” Milestone, the Nation’s most comprehensive intermodal equipment lessor – and operator of America’s fastest growing fleet of brand-new chassis – is making a massive investment in the New York and New Jersey area in order to continue to meet customer demand.

As highlighted in a recent American Journal of Transportation (AJOT) article, Milestone provides the best and newest equipment, which saves customers time and money.

You can read the full article here.

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