Steven Leonard: For us, on asset-light, I mean, what we are seeing right now is customers are really seeing what we do in the asset-light space is bringing a lot of value to their supply chain, and the market is such that prices are down obviously. And so we are not immune to that. But at the same time, we want to keep a structure in place that allows us to capitalize when the market turns. So our view on that is we are just trying to strike the right balance. We obviously look for ways to improve efficiency and at times reduce cost. But at the same we want to be balanced in what we do there so that we can be responsive when the market improves. And so that’s how we think about it and we will continue to manage it that way as we go into the rest of the quarter and then into next year.
Jack Atkins: Okay. Thank you for that.
Judy McReynolds: I think the customer side of that is, just their truckload is a very sought after solution by our customers, and it just works well within our integrated solution set. And so, we want to stay well-positioned as Steven said.
Operator: Our next question comes from Chris Wetherbee with Citigroup. Please proceed.
Chris Wetherbee: One thing to ask quickly on sort of the approach to pricing. So, I guess prior to the Yellow bankruptcy, there was a little bit more work being done in the transactional part of the business. And I guess I am curious as you think about the path forward, how much transactional activity is going to occur relative to your sort of core book of contractual business? So, we have seen shipments come down. It seems like there is a mixed profile change that’s occurring. But at the same time, the transactional market probably has improved quite a bit sequentially. So just want to get a sense of how you think about that approach going forward?
Christopher Adkins: This is Christopher. So I would say it largely depends. So it depends on our network, where our capacity is, where investments have been made. It depends on the market prices. It depends on the competitive landscape. All those factors play into that decision making process. And the good thing is we are making a decision on a daily basis. And so our operations, sales and yield teams are coordinating daily, regularly communicating to figure out what is the optimal mix in our network and that changes day-to-day and we are prepared and agile to respond to the needs of the customer.
Chris Wetherbee: Okay. So I guess it’s fair to suggest that if we see, if there were softness in the market last, we saw in the first half of the year that maybe you’d have a slightly different approach to the way that you try to manage it. I think there was a desire to sort of add some volume in a pretty challenging market. Would that still be the approach that you think about or it would be more price dependent this time around?
Christopher Adkins: Yes. So, I think it all depends, like I said, on the marketplace. But I’d say, from the third quarter, like Seth has already talked about, we did reduce a lot of those variable costs with cartage, rental and different variable costs that we’ve done. So we will continuously monitor that and make sure that transaction business is covering any additional variable costs that we’re bringing on.
Chris Wetherbee: And just one quick follow-up on the cost side. Just how do you think about headcount going forward? Do you guys have sort of what you need? Do you think that there’s potential efficiencies here? Or just your general comments about headcount going forward would be great.
Christopher Adkins: Yes. I would say we continue to hire in strategic markets where we see growth opportunities as we want to provide great service to our customers. When you look at our turnover and attrition stats, they’re some of the lowest in the industry. So that’s a great thing. Our people stay around for a long time, which is great for our customers and our people. But this is really a location by location decision that we make based on the opportunities that we see in front of us. So throughout the pandemic, the last 2.5 years, it was more challenging to bring in labor, but we’ve seen that soften quite a bit. So, we have a good pipeline of labor that we kind of have sitting on the sidelines, so we’re positioned and ready to go.
But we’re constantly looking at daily, almost like Christopher talked about with our mix decisions and business that we bring in. So with those network visibility tools, I talked about earlier, we know where we need labor and we know six months in advance where we need labor. So that gives us a lot of tools to say, let’s make a decision now for what we see coming in the future and that’s different from what we’ve had in the past.
Operator: Our next question comes from Tom Wadewitz with UBS. Please proceed.
Tom Wadewitz: I wanted to see if you could offer some thoughts on just kind of underlying freight trends. I think both on the LTL side and then also, it seems like in the Asset-Light business, you’re seeing a bit of further deterioration in volume in October. And so, I don’t know if you think that’s just market getting weaker or if that’s a function of any change in an approach. So, yes, some thoughts on market trends.
Matt Beasley: So, I mean, I’d say that the overall backdrop is one that we’ve seen the manufacturing sector, it’s been in decline. We’ve seen that decline, I guess lessened a little bit in the latest report. We feel like that the destocking cycle is coming to an end. And so you still see a little bit of that softness, and so I’d say we see the potential for that to become a catalyst. Certainly, we’ve had very specific market catalyst in the LTL space as it relates to capacity that had been a tailwind there. But I think if we move forward, we see some recovery in the manufacturing sector. We see a move towards restocking, then those could be additional tailwinds just more broadly across the business.
Tom Wadewitz: What about on the Asset-Light side and in truckload? It seems like that’s the trend in that spend seems to be getting a little bit worse looking at the October shipments?
Matt Beasley: Yes. I mean, Steven can talk to it a little bit more. I’d say overall we’ve been seeing increases in market share and increases in shipments, but we certainly remain focused on profitability. Maybe Steven can talk about what that’s looking like in October.
