Schneider National (SNDR) 6 Nov 242024 Q3 Earnings call transcript

Thank you for standing by, and welcome to the Schneider Third Quarter 2024 Earnings Conference Call. [Operator Instructions] I'd now like to turn the call over to Steve Bindas, Director of Investor Relations.

You may begin.

Thank you, operator, and good morning, everyone.

Joining me on the call today are Mark Rourke, President and Chief Executive Officer; Darrell Campbell, Executive Vice President and Chief Financial Officer; and Jim Filter, Executive Vice President and Group President of Transportation and Logistics. issued press company the today, an release. earnings Earlier presentation on website the release schneider.com. and Relations available investor an our This Investor are section at of

Our laws. purposes of plans safe expectations, harbor These call applicable about the forward-looking prospects federal under securities constitute the for Schneider. will forecasts, for statements provisions remarks include and future

differ current expectations. Forward-looking statements that uncertainties from and could cause materially involve risks actual results to

such to, including, today's our risks except and required urges recent uncertainties the discussed date but call, Schneider investors not statements, are SEC our identified All of company on limited The report and the as statements risks disclaims filings, most those annual as law. update Form earnings to by in and duty of any made this forward-looking review XX-K release. in to

today's pursuant any a reconciliations to referenced investor presentation, G, financial which measures directly earnings GAAP and to call most Regulation be addition, release reconciliation can includes non-GAAP comparable In of the found our in measures. during

like to Mark the our CEO, over Rourke. to I'd Now call turn

Thank and hello, joining today. Steve, you Thank call the for everyone. you,

remarks intermodal prepared on performance and our sharing and my of segment our overall freight For morning, market I'll the discuss platform multimodal across and positioning this logistics. truckload be perspective

provide that, year and share XXXX of Following our will a third Darrell full expenditures capital EPS overview financial quarter guidance. results and net

recovers. our structural us in your the opportunities quarter, allow market outlined we the enhancing improvements designed deliver value take drive Last pleased returns questions. ahead, we to ongoing be as seize Then will a framework increased freight to to financial and business, enterprise

quarter, purpose across discipline, freight market with delivering growth more continued path proven. across recovery seasonality an and our allocation yet managing expense becoming the optimizing customer our its includes framework process trend, experience, effortless by not third allocation In The managing categories. on but strategic all costs the prevalent, drivers, towards capital on the the and with focusing

on and seasonality XXXX time of in call, have half July expectations traditional the that into we the quarter our visibility for updated our we experienced standpoint, last a our second more of same. a When end from suggested at solid earnings June

However, East the strike sustain short through port were mid-August in did and term. by hurricanes further and seasonality improved impacted Coast the the quarter trend not end

the a Truckload. areas going currently best of as a framing performance in The standpoint XXX% by Let me highlight are the starting that more up in than segment, the challenged most and with far business segment quarter's truck key XXXX return few illustrate network Truckload set by dedicated into the sector. the is earnings and the from

seeing are growing, industry and as XXXX We XXXX. capacity rivaling community the are in indicating defaults some are provided steadily compensated being are not the for into Carriers exiting levels adequately our lending the truck value and and cases, that the deliver. financial and crisis checks to channel from the repossessions cost

are pivot quickly, minimizing to market improve for environment, we we freight not to to correction waiting While network. capital Despite prepared current allocation results. the are we are

will that reduction areas our growth network other and rate an in results. to capacity. drive restoration and productivity owner-operator are there primary cost X addition actions, In improvement focus truckload of

The first action restoration disciplined. we rate is remain where

improvements our September, the renewals, mid-single-digit through third of As were in network renewal quarter XX% range. contract end with of percentage rate we the

growth and network. ability our in customers lowest performing a to carriers, opportunities the move in the to market correction address As to creates prepare seek anticipate turn asset-based which for we freight

the network The to owner second is our self-help operator opportunity for fleet. Truckload grow

owner for to of operators number in that industry, believe a shrinking seen Schneider have we and change the opportunity we have we While an trajectory.

now operators portfolio the that freight services. an consumer-grade opportunities of Freight platform Schneider's visibility Schneider launched to for We across operators Power updated have owner more provides owner recently

level of customers, higher choice increased owners especially Freight brokerage. business in Power provides service delivering time-saving to a and while features

now as the higher current exited XX start-up quarter Moving truck tractor account units and with Dedicated. down Average count we quarter. through was a the but count sequentially, growth XX% to activity accelerated

levels, from churn and expect we XXXX. account down in XXXX to this our continue Overall, retention high-level is XX%

start-ups X for slated back Finally, have to delays. pushed XXXX of been XXXX launch originally large customer greenfield the into due half

exact in awards the start-up While meaningful is new stages. these several to timing be our with for determined, is latter pipeline strong opportunities business their

the of truckload our represented fleet. As Dedicated end XX% of of September,

initial quality our acquisitions. fleet new grown on business dedicated organic growth year public strategically by our have through per average X% We since and offering

value. serves offering chain Dedicated range creates wide a customer of differentiated supply Our verticals and

We about opportunities confident the are ahead.

sequentially structural internal improved Earnings to through segment. improvement actions. compared last XX% Intermodal year the mostly to cost and grew over and Moving execution

our of Intermodal annual renewal process. the book All has through gone

incumbent retention rates renewal discipline flat. lane with second improved pricing we as highly quarter win competitive of season a outcomes quarter environment quarter in the from and Third contractual remaining another pricing maintain

Mexico. and per revenue experienced volume the intermodal in Year-over-year, year-over-year percentage maintained order. order We double-digit and West growth

intermodal in truckload the network We and remain in offsets and use heal improving a east and balance. to market. events opportunity very experienced we by the However, the competitive flows allocation network disciplined

our Our dray strong rail providers with our owned growth. model, differentiated relationships on focused by utilizes and intermodal asset which drivers offering is mutual company equipment and

we the As market differentiation. leverage truckload rationalizes, this will

and connection Mexico are service Southeastern the creating approval and X the We between from the CPK between with the pleased Texas, STB States. and United and CSX

advance market freight initiation and further segment, competitive the brokerage and by will new await solidly carriers. Transitioning Logistics the very eagerly remain in platform of for differentiated which profitable our publication intermodal offering. our our shippers this we power corridor, leveraging We to

carrier through gross margin experienced We as of just shrink year-over-year minimal maintaining volume increased the quarter. while X%, costs effective management

cycle. increasingly asset-based pivot live brokerage of to well flexible live our power adaptable move solution. fastest, The brokerage and shippers spot our markets both the positioned as unload freight only well highly addition, and traditional we business this in are the favoring and across as brokerage stage In load, are

we ahead questions. to now look I'll it his quarter over summary your for before turn get to Darrell? the and Darrell on a comments

segment good quarter, third for the enterprise our Mark, along review morning, results year-to-date financial you, capital allocation with and flow and trends Thank everyone. cash and our I'll actions.

CapEx I'll results to full available our presentation found investor of Summaries Additionally, and our our our on and XX our XX EPS guidance. be of net Investor guidance XXXX Pages on on can of Relations website. insights financial provide updated section year

conditions, market ongoing [indiscernible] I to our reiterate being navigate the freight advantaged positioning structural As and market want resiliency freight for objective business in of the the correction.

long-term on disciplined resource we're enterprise. While focus commercial remain optimization term, in enhancing the we and actively our Through cycles, invest all our cost short actions management on across remains value.

every are platform were We third creation. continue to implement resiliency, and essentially impacting positively segment our business and long-term value the services margin revenues, restorative $X.X billion, excluding actions, growth our fuel which multimodal quarter, In of capital year-over-year. of and position flat surcharge,

$XX a to Compared quarter million the diluted $XX per quarter adjusted million represented year equity and year, earnings $X.XX ago. on earnings share in to to the for $X.XX and Adjusted a third operations year third income investments of a headwind ago. gains Our was was $X.XX third per net sales lower compared share. from aggregate last quarter equivalent

same fuel $XXX From of Increased to were ago. auto performance, $X.XX a liability quarter, we a costs investments excluding and insurance in Truckload premiums. insurance the favorable X% an costs rising a period in ongoing million settlement year-over-year were continue third and litigation, surcharge, year perspective, segment higher revenue, increased environment our below headwind. operate the also safety Despite

lower lower growth offset as gains to our This Truckload volumes, in the million year-over-year primarily mostly $XX dedicating in same network was and year-over-year, operating was due which by revenues insurance down impacted costs decline factors increased that well were fees. X% affected sector. equipment by income as

year a resilience. to Despite $XXX growth. million, higher ratio same lower business as XXXX, a compared Intermodal operating primarily the Intermodal period was to quarter dedicated last fuel network million Truckload volumes, to to due period continues year. than the third $X ago excluding surcharge, volume operating $XX income third were quarter, the X% same our increase revenues, in of flat million the was show

Intermodal improved supported assets The our actions, dray percentage enhanced was and basis ratio year-over-year volume optimization freight and increase in improvement trade in network internal per improvement an operating of drays points by company performance. with growth, cost in benefiting from XXX day. the

year-over-year, was compared Logistics logistics per lower reflecting revenue $XXX surcharge net exceeding down per the million million a and revenue fuel to due $X ago, million income lower order. volume third order. X% primarily quarter, revenue year The operating $X were in to

same Third quarter XXXX a year essentially operate the showcasing flat period ago, cycles. logistics profitably our ability to operating to compared ratio market was all through

productivity year. tractor corresponding Net allocation cash and allocation. is and CapEx in capital compared improvement driven capital to improved September our to primarily are asset flow enhanced reduction free Turning to year. $XXX driver the network $XXX to in below These due year-to-date ongoing discipline. actions a optimization last million million freight ratio, our was This prior

including balance those facilitates our to to of growth and organic dollars sheet, opportunities. inorganic strategic strength our with Along continued ability the priorities, our allocate this

conversion, actions prudent remain interactions our execute to free we As managing objectives. improve position cash for fleet-age we while the future flow our and

year full XXXX previously within $XXX guidance of range communicated net is updated Our our CapEx million. approximately

of in During $XX repurchase $X authorization million remaining repurchase had of year. share approximately million February program opportunistic advanced with the million last we At $XXX the quarter, share September, we our on purchases. established end approximately our

also year higher X% we the shareholders, $XX than million to returned In a dividends is which in September, period ago. our

our at of the quarter. leverage the X.XXx end net debt stood at Finally,

impacting our in conditions more network truckload our June below volumes. August Mark market primarily seasonality As mentioned, expectations after typical experiencing September, in and and July, were

In in implementations dedicated addition, the mentioned will impact results. quarter previously delays fourth

we've free timing a improvement XX, we expectations ] stabilization. and and our certain the freight market seen While more of operate to regarding continue of signs economic of environment market [ sustained in a

fourth improvements. earnings During we the quarter, expect year-over-year

seasonality, truckload logistics. XX%. year your $X.XX, rate Our open of guidance $X.XX across for a assumes our factors, guidance as per the share call within adjusted updated network earnings most diluted full well tax full year we'll we've businesses questions. of effective these to to improved on anticipates Based and which continued that, With XXXX as our stabilization particularly

line first Tom Instructions] the of Your [Operator comes from from Wadewitz question UBS.

is Tom. guide. the This want for [indiscernible] year on ask to I full my

in at slight So XQ earnings it midpoint. implies to XQ sequential the a improvement

seeing market, container mind? from the in on the be we assumptions Coast on Just walk what us season? keeping your views if And pull-forward that in there should your the there effects West were through peak off based any you're imports

you don't that? if repeating caught So the first Would know I of part I mind that question. just very

Yes.

guide, if XQ assumptions the effects -- Just pull-forward based imports there kind on peak so mind? you're it that season and keeping just were the be in market on seeing views of what from behind should container on the any in we the then

an improvement sure. standpoint, we but improved season, margin holiday the some expect a quarter at assess Sure, the do on work that fourth what we an only the for that from through of quarter. third the secured, From We expectation. performance we from not expect seasonality seasonality to which typical have is project

while gets drive solutions how secured, will obviously, the that much So of demand actually utilized.

the be And so seem both the and performing in expectation. that we at to markets retail feel e-commerce

effects quarter the And Certainly, certainly to strategy Every some that has to that how third see but there improvement. pull-forward been some we the look intermodal we customer slightly there activity. has have so quarter, we been third the volumes to some a quarter, that's the back and different certainly the West improved fourth Coast that pull forward. on on some would saw attribute in in business of as

Okay. a bridge count drove operating takes puts there fleet there through sequentially. side? it increases us segment XQ just And by Trucking XQ higher could as down that the income, with the parts insurance down, to the getting the network you that on expense just on to seem moving and you're network then There rate offset some the the walk follow-up be in

effect that's second think to the third I good quarter. a Yes, summary very of

that encouraged at outlined of September experienced what of in second the seasonality same kind by did the of of June we degree see a seasonality half very the August our month and the experienced July. comments, not to month the end we were through As second from quarter that of through the we prepared and we sustain period of we which

increased cost standpoint So of that some the noted and with is quarter insurance moderating as is costs. that some tenders, of on

Sure. Darrell. this And yes, is

the about dedicated of dedicated as of terms sequentially some So in what we said, in business, volume truckload network, think side resiliency. Mark the saw declines show you in if versus network

our quarter. some the resiliency, So for that positioning ahead we're of we're when fourth looking obviously, guidance

So the X of tale it's of segment. kind of the portions

of we did the second the from resiliency, sequential showed our which also improvement onto informs Intermodal some one third see guidance. also

Your Rosa next the Citigroup. from line from comes question of Ariel

This Ari. is you on hear Ben for Can me?

Yes, absolutely.

trend revenue in decline to sequential of Yes, you sequential But should leading volumes. your next Great. for Dedicated truck looks do we usually you're think is? pricing Okay. truck had this growth quarters is the now segments, it X pricing expect wanted I and and ask What per in this both lags volumes. that case, but quarters? count, And like few week network you've over per

Yes.

attack standpoint. dedicated let's First, from a that

on As ahead average, metrics, as we start-up the units. an activity down, external of were quarter. came out on I We XX quarter we accelerated and mentioned, slightly through current our account believe, the

XX of Dedicated large up year that had delays their into fairly of units. to pushed launch and So the And up in has opportunities noted, a we half actually we in couple about product we finished customers the greenfield expected start second that the as XXXX.

third renew. contract in our renewals, being quarter believe, disciplined pricing obviously, pricing moving we our since, first Dedicated, of with XXXX. do some on third consecutive built-in on as But contract some contracts parts highest in the there. But quarter renewals have we've improved remain network, both there's So I had you our of and modifiers quarter

So for because on improve into just opportunities the and trading yields to others bottom restoration that particularly at need in to to is our we side. network upgrading continue do rate some the really some customers, to overall and volume, that's point focus that's the off lean truckload portfolio, you're our of

Great. supplies Maybe Darrell, items looks side. historicals had at on touched record your this you were a average revenue remarks, touched up kind XX.X% of in stepped shifting operating line spots, they supplies to like and the levels as follow-up, the operating versus both cost with insurance big versus what XX.X% it to your this looks a percentage prepared of historically. And like as

revenue for up or historically. the premiums insurance, we average on these we average? nuclear should about for higher forward, expect then of of roughly a range The that as an due of the growth And a next of to But versus got X.X% terms year how X.X% range in percentage understandably, latter, to think kind verdicts. we in going should elevated X

Yes.

good our start laid can have we've several costs with been on business on over I our driving well. time guess if is we focused right? reducing you over the it quarters. From investments that exposures, So questions. of that I and perspective, been have we incidents biggest in the think pretty insurance, out down insurance frequency So impact past processes

there's as premiums, you we're nuclear an in and increase increased verdicts recognize, where as litigation But in environment you said.

come to that is lose particularly of not third the fact some our of But in seeing we're the So coming sight that through quarter. frequency down.

of that not As it say relates denominator, to operating supplies, would that's primarily we right? revenues are normalized. a the our function So

quarter So leasing business the And we and we on did in on second sold with equipment which results, That's reflected sales. we've we've of cost driving quarter, leasing the supplies. were associated equipment increases our as down, But other revenue gains where would year-over-year our had the operating business mentioned line in goods baseline. use lower in sale that gains item. so see our normal this as a sit is

owner-operators continuation through just we've environment results. the pressured the So seen that has coming of a

and to safety want reinforce just maybe insurance the I line. the

one our this have quarter severity job as exposure #X incidents in our circumstance, reportable year, higher reduction could a in XX% based the which is actually the we and ones had look overall reduce First, third in we cost. at DOT of accidents, are upon that to

include and funnel, our we're one who of and to reduction driver on our associate is job, related in doing overall improving top just and year-over-year leaning teams injuries X% lower the operations are our really anything So safety base. proud I'm a really and of terrific of job our the a to performance community,

the trends us, it a overall for comes continue, that and else those multi-quarter exposure volatile trend anything as and again, this with lowers settlement, area. that's ultimately So

time. the appreciate Really Geat.Great.

Your Shanker next from of the question comes Ravi Morgan line from Stanley.

in your operating This get magnitude on over to is the to less I love could to seemingly It like, what thoughts of but for get are or want some play loss. circle I that, one-way of seems both thoughts helpful, and Christine a just your be Ravi. back the slope looks you just terms that to like Burby that. imagine on want couple can improve next on guys the But at path to how the the more out would quarters. profitability cycle to of taking actions

Christine. you, Thank Great.

market are frame and look our sides or Let we would a as at the company. of this most we me most just within the what business positioning volatile objectives and to And down. strategic you certainly, be both our network the up expect commoditized

great to made what so trying look at XX% drivers units, which to impact to on growth with we're both And of very our opportunities and at that pipeline we're strategic is the a we've continuing that. continue of progress do inorganic to our minimize strong and organic of Dedicated, growing

differentiators and addition, great capacity recovering as and into solutions our to our market also and like bringing owner a that network our we variable more putting to operators benefit segment. play In has power only with truckload business business leverage intermodal at play in more

minimize volatility offering. though, So in rate that's isolate of lean and book expect into continue term, to get to In continue last we've that our the turn as strategy that, the business need of the the short a in compensable we we and would will to improve and the X rate network quarters restoration network, the we progress made and effects activities. the XXXX in doing on the and page

think, since XXXX that seen, owner-operator and then XXXX company particularly us, in almost do with We the and drivers the but time you've how we financial there, have think of our I more across as crisis. we industry, around the augment only increased with shrinks core not performance right core network amount there, any have some

power application, access additional we that technology of visibility freight some doing more have generation our to to an and activities enterprise. freight freight ultimately with portfolio the through provides which in across our investments more owner-operator all freight we're So as

So a a to rate top network. restoration activity sustainable a it has more cost and to us line, both position within a move the

helpful any one had come obviously, could we've I light base like year, forward, ahead what results disruption this event? out tariffs but about is and structural that amongst in that, to tightening potential slightly there look might in think as enough some that do we chain That's supply color. but election the of ask Great. can Maybe forward look a forward if customer more direction, different really related another your pull talk capacity pull of you be a has some

are thinking how you Or of through dynamics? some those

This Jim. I with at Yes. that at bit operating are this than just as pull point, customers our pace not customers happen forward Thanks, see currently Christine. say this haven't is push. normal our won't would additional but about would on many had tariffs, an normally relative to faster we a their discussions happen cycle that would we preparing really replenishment little for holiday what that,

something still ahead is be there it could out that So of us.

from comes question line Fargo. of Wells next the Chris from Your Wollard

curious looking cost rate takes business. out year? you on should a the about next taking puts Could some remains you like But getting for opportunity year? margins back be for expansion we like just competitive Chris. network you thinking next very restoration about a think -- It given margin guys step here, Rob how the are It's how improve to sounds to environment. inflation Obviously, it the within and

certainly, guidance continue a we been juncture believe have Yes. slow exiting our mentioned whole this the at to grind opening obviously We is But do in capacity marketplace. on of It's won't XXXX. lot a comments. to trend, for

I capacity financial and out at continue levers, they're the the the we're in is the portfolio continue. As perhaps and quality toughest you to of community lending which that of loan out to think, allow look to crisis, means levers of increasing, as since spot where

supply discussions. area the So I which key a think customer to will side the We that's of watch, equation. help most on recent our

favorability some and think that's a themselves asset-based recovery brokerage. I think I more and sentiment and sort being carriers to the they're we've certainly looking that seeing why walked away with you're of some asset-based towards market

trend I think that continues.

scenario. our mind, that And least to positive at has builds contributor think in a a I XXXX

comes question the of Daniel Imbro from Stephens. line next Your from

Reed the that follow-up This a is intermodal we've of Daniel. on questions for Kind had on other earlier.

If intermodal sustainable expecting on forward, outperformance are we the What in expectations. to this do could had least going XXXX? -- given color you the our expectations for do provide fourth in pricing be at grow And your some to versus you quarter? you quarter, as able pricing you some in see

Do fourth mean of lines, be the there I as helpful. that you would forward? color Just along same kind continuing the OR and improving. been going has quarter in any see

bit on guidance A Reed. for early to pricing. Sure, is Jim. be XXXX us This little giving

price allocation that I now a Sequentially right a think our a season here disciplined improvement. what result we're remaining business. you're from improved where of as small through as way just year-over-year, we're that well growing little the of managing well as that amount seeing this of improvement is our bit network we're just that as dynamics of a network

Got on real just quick as it. the And well. guidance CapEx

challenging dynamics You it with is while flat report basically backdrop. some the kept there in the

If could color provide thoughts on your just there. some you

Yes.

a quarter, $XXX second at $XXX We're as the million to recap, to So guided $XXX full the million in million. had for coming we year. in

of improved. actions taken, square Our of has productivity a we expected the So right? that in had we've middle what number

which truck most to with our CapEx our ratios capital allocating tractor driver be has in tightened -- to what the discipline that to growth. We've impact sectors obviously maintain to spend terms tractor demonstrated of on has the an are

exercise several on an going So been that's of that's a been continuation quarters. for

So doing the what to we've this a lot really confirms guidance of been point.

net moderated also CapEx disposal has bit. a the that's proceeds guidance, which from and And equipment, a that's

puts still right in So range. the that of middle the us

our grow XX intermodal across nearly only in trailers. degree believe on forward, As we can last position same the do our and without in the have -- to network business, both so power a we reinvesting also we we look business months we we're as

well as a after in we're think not to margin capital those to we get improvement having invest so have And improvements. position some as to incremental

an we think as XXXX, more leverage that our benefit shareholders. the I be get can we'll to that's we into of specific area but So

line America. comes question from Hoexter from Ken The Bank next the of of

might that I So topping investable. in yet a Mark, contract is best that believe but level rates mentioned the were still market throw you you earlier levels, few some years. not

last guess there net given odd, one orders I were month. is So a XX,XXX little placed

getting I'm try that what to wrap environment yet us keep head in But looking you still to we you're basically levels. trying does tell the fourth where those to I that my Darrell $X.XX. still quarter spot about around flat, improve getting why backdrop and down an and taken you're guess, to $X.XX,

given How do the about you improving? think environment rates are the spot

believe, that's mostly a And I of network couple a question. Yes. things. Ken, And

think to in actions the reinvest but and I margin inflationary the recovery business. think need rate for from still, some arrest taken we the have we recovery be path complete standpoint to to of we impacts, on a that we

We a front by third renewals third the the do in and at in so that category quarter. least still right? encouraged mean standpoint. X to into experienced certainly the we've quarters work here in last renewal starting quarter more have of that that's quarter of from so and lift even positive doesn't the us, turn Again, to Third

implementation more nature helps do It work us that. pricing the are depends certainly, awards has to to the the improved in contract when short-term and yield the of Spot generally those chance get are solutions. benefits. you those Those with project

play, retail December through quarter. And carried can the watch whole this second the and fourth particularly so we the at trend how trend e-com to the quarter, want far is how again, through half, is what

lower of couple we of in where high strong are. that mid the determine last will range weeks that of the to is of the part are range think to how the part really December or I X the range end range the the

the shipping there just of the matter doesn't to because a and you're spot, to starting backdrop getting that that does enough But pinpoint you, balance? you're it? of I coming of because capacity a out which see that tariffs. you're preshipping and better out potential seeing Yes. is mean way Or as sign, guess it storms improve? to a Is free and Is

saw we're through which to encouraging. in what how that trying the specific assess, June. were Ken, really think that on really We saw trends. of more sustain mid-August same that I trend that, to end then July, We we be certainly in tempered. those can And the quarter, it's

back enough investable piece how a feel and we we're business. fast so when more far our is enough in move network instructive more spot to and the into be favorable think, October sustains can pricing seasonality that to itself, Now I dial we

up or me. got And moved intermodal is first, a to in double that versus start spot wrap just the improvement little for West. tightening versus preshipping Mark, you've the Obviously, you volumes bit other faster The that see there impact the truckload the business, X to that the the up digit

would service But truck it if know there that's is first? just rail to a I don't signal you Or that tightening? of X look improving? Is that rail or on seeing

customers start to to that Ken. price. interval also as titans rate a comparing They in capacity. an at contract a is to Jim, this look lock contract market is to This of And Yes. part contract spot

the comparison. that our bit road, really And there's to market. what a different and tightening, so over tighten start truck that will seen as bit change rate And little to at pricing start would little increasing you be a that than have see faster we and

moves? Historically, truck moves intermodal pricing before the Great. pricing

next Your from question Bascome comes of Susquehanna. Majors the line from

do business going space, by seeing into walking to would carriers, network Mark, do restore large market away one-way most we in think balance for the they we're what need part, from raising to the the the by the feel noncompetitory it across the that brokers. guess small is what's I like results doesn't brokerage on retained? business, aggregated from And carriers national pricing

this, market's business the a away And that competitory carriers to are that restore people are in strong a know you but industry? you one-way So now? do framework walking and the hand internally, going view returns-driven if really right to what ultimately, the I does of large don't it take on where think national have segment from force the

Great. Bascome. Totally there, understand the question

percentage I points the we've demand points dynamics think a been perspective, on in this of fastest. of to historical recovery And erosion downturn historically, quickly. And change decrease supply and the network supply. business, starts of our reacts long on both fairly the of few increased slog couple in on just percentage a a to a slow

I allows, And measures that. to when it bottom predict bottom. trying We're or eventually, are to at timing. the is close those I start happening. to totally for does reactionary the not think But that the we think, It feel

I and trailer baffled the pools. that relies also bit think taken a longer are that has on customers shipper us sophisticated our particularly

It are long-term for hedge. sustainable performance at to trying looks network their also

to the that's see part starting our to slightly long that as ever the well think realization so because we're of that they're we're I why even cycle. ability pretty having into price move

have type the you this flat what class the or down in within Do of taking rates to on at competitive is carrier cycle? sense landscape, a point

really Our that's party again, group. a general much versus carrier our brokerage view carriers. some a third in And smaller of a community midsized to is

So think I industry difficulty don't to visibility being it calls all think into disciplined. so I I being have of it's terrific the fragmented our But those. of for

cost And rate invest be really, in have our compensable the there, start is to to get to to for erosion and that's our focus we restoration business. enough

from Jim. is our little the add perspective bit of Bascome, I'll a just this of customers. color

they're longer health go. a understand we're on, they're like season, that questions those broad ask we're will to And looking them. they financial carriers trying to put with to of portfolio, As their long working and this business strategic more to more to starting goes solutions, allocation have to need and trying pieces ability stability the to discussions approach with us listening, those having making put they as their wherever the starting position the together to the of together they're questions, companies they're cycle

the Your Chan from Bruce final line comes Stifel. question of from

you're I participate and in there's market. relative in was interested to East of there to side. to the comments something given in about hear that And some that's makes that the any your there coming strategy decline an ultimately, been interesting your to competitors your the the maybe around there. volumes less guess, others? detail Maybe back there I the just asset-based returns why not comments local I just inherent intentional have imagine seeing maybe decision competitive whether growing But

strategy disciplined as the connection and season the in going to our of between really and the would improve what about CPKS. CSX this profitability STB is, we maintain new to East eventually where really, there, Yes, remain this the is is Bruce, say through talked this is going Jim. forward I our the approval And allocation opportunities

at us That's with we rail largest exciting out and have both that have Texas that with is an have been with perspective. that position the having in The as an one the of railroads. opportunities really of intermodal between we've start to option for It there to anchor discussions network. an they're those from because But we can the they excited look Southeast. connection It's truck. customers, competitive

So I say that would that's we'll to expecting be East. we're grow the able where

what delay frame our interim marketplace freight the is hit we this a new that so using we're and experience of running been of understand shippers and time into to a opportunity. really won't go that customers on insights through to by and we've can value becomes period and already our front ready could we And to prepared all out that we get in is that our what ground once our that much create over in potential that have multiple with the of year clear,

theme. forward? the you of some on go for dynamic of service peers. at potential heard maybe And big the that then just about opportunity you're of maybe from think to And pricing if any one anything your PSR that's or as maybe continue providers, competitive peers you changes disruptions or seeing? Okay. service about your thoughts around rail some the We've X how as Wondering

the in start I'll Yes. East.

think and that service they've hurricanes, quickly they network. massive strike, rail restored port line really with X business shows CSX of the the entire amazing responded It's PSR. a X about how covered gone really that to through You resiliency with their what operating

And could bringing competing opportunities think then Harris for and some create management our I too from of do in to bit changes tell. little they that West in partner it's the Pacific. soon with at to the Union terms Clearly, a potential railroad in to West work margin have a

you conference for your And today's concludes Thank this call. participation.

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