ArcBest Corporation (NASDAQ:ARCB) Q2 2023 Earnings Call Transcript

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Judy McReynolds : Yes, Christopher, you want to share that?

Christopher Adkins: Yeah. So, that is not shedding all of our transaction. And we still think it’s healthy to have a good portion of that within our core business. And really, it’s responsive to how our customers do business with us. So, if they’re making individual shipment level decisions, we’re meeting them in the channels that they are. So, the 19,500 does still include some of that transactional business. And as we’re exiting July, we still been managing to that 19,500 at this point. But like Judy mentioned, we have the ability to scale up and meet our capacity expectations that our customers have for us.

Judy McReynolds : Yeah. And the only caveat to that Ken is, we want to make sure it’s good business.

Ken Hoexter : So, so to understand, then you shed the transactional taken on the freight you want, but it’s you still haven’t expanded. So, to your, I think the first question, Judy was on capacity, you haven’t filled up the excess capacity. You’ve just swapped some, some transactions.

Judy McReynolds : That’s right, as of the end of July. But I mean, understand, that’s what we’re talking about is through July? Well, we’re not really speaking to what could happen on the upside, in August or September, because we’re making daily decisions about that. And –

Ken Hoexter : But if I understand, I mean, have they fully suspended pickups? I mean, is this transition at the tipping point, in stark terms of you getting the share, you get? Or is there still a lot of tonnage left in the jump ball market?

Judy McReynolds : Well, I, — I don’t know the latter part of the answer to the latter part of your question, but I do know that, the noise has been, that they haven’t been picking up. Right. I mean, again, I hate to speak for them, because I know all that’s not finally determined, but that’s the indication that we have. And we again, we’ve been having a lot of good conversations with customers that I think, Ken, this is the kind of situation that as it unfolds, I mean, this is a multi-year type effect. I mean, when you have a company that has handled as many shipments as they have, and they’re — if they’re no longer a player, if that’s where this ends up, that’s a big effect on our markets. We’re seeing some of the impact but I think this is going to go on for quite some time and honestly, that’s to our advantage because it gives us a better ability to read through and look for what works best for us and for our customer base otherwise.

Ken Hoexter : So, just to clarify that earlier answer. Can you quantify how much work or give a range in terms of that 90 and a half, how much transactional? You can still shed just given it sounds like you said, you made a move to get rid of some of it because of cost issues and other things. So, you were using it to fill in network? So, just to understand free additional capacity, if you choose to get more of that? Can you talk scale?

Christopher Adkins: Yeah, this is Chris. Yeah, we still want to keep some of it. And like Judy said, it changes day-to-day. So, I don’t know that we can really give a number there. But each day that varies based on the demand of our core business. So, we’re just filling in the rest of the network based on what our targets are for the day. And what our customers needs are.

Ken Hoexter : My last one, if I can get one, Matt, you said the operating ratio. I just want to clarify your comment there. You said it was normally seasonally flat. But with these changes in the network, were you saying you expect? I didn’t catch your answer there significant improvement in from that I need to wait or maybe just clarify what you were pointing to?

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