Steven Leonard: Yes. Some of that is just a function of us making sure that we’re disciplined around price and that we’re getting value for the services we provide. But there’s still tremendous opportunity there. We’re seeing lots of opportunities. We’re just being careful about how we think about bringing on new business. So, that’s reflected a little bit in what we’re seeing in October, but still see lots of opportunity for growth and that’s what we’re focused on.
Tom Wadewitz: And just one quick follow-up on price. I think, how long does it take you to kind of get through the book such that the stronger pricing environment would be fully reflected? It seems like you’re showing a little bit of further momentum on price in October. I know you got the GRI, but how do you think about kind of the timing where that we might see further acceleration in price in the asset in the LTL business?
Christopher Adkins: Sure. So, the way I think about it, this is Christopher, is that a large portion of our business that is in the core business is subject to our annual contract negotiations. So, as you think about that, those agreements are typically good for one year for 12 months. So, we’ll work through around a quarter of that business each quarter, if that makes sense.
Tom Wadewitz: So, you potentially could continue to see accelerating price for a couple more quarters?
Christopher Adkins: Sure. Yes, I think that’s fair. Prices will always be increasing as our costs go up the cost of doing business goes up. So, yes, I would expect that to continue.
Operator: Our next question comes from Jordan Alliger with Goldman Sachs. Please proceed.
Jordan Alliger: So, I wonder if you could discuss sort of freight redistribution. What I mean is do you think you could see some additional share opportunities in the quarters ahead perhaps some of your peers or competitors out there maybe took on too much, perhaps struggling with service. I mean, does that pose opportunity for you?
Christopher Adkins: Sure. Yes. I think that definitely does pose an opportunity. I don’t know that I’m seeing a big issue with service in the marketplace necessarily. I think the freight has landed with the carriers that it will immediately following the disruption. Now shippers and carriers are working through each of those deals to make sure. The carriers are making sure that business fits in their network well and is priced appropriately and the shippers are making sure that they’re getting the service and the price that makes sense for their business. But I think that’s a case by case basis that shippers and carriers will continue to work to make sure that they have the right relationships. We’re also seeing there is an interest in diversifying the carrier portfolio of shippers, which I think positions us really well with our managed solutions that we’re not just an asset-based player.
If they have issues with sole sourcing with one carrier, that leads really well into our managed solutions hands.
Jordan Alliger: And then just a follow-up just on like freight characteristics mix, obviously, weight per shipment right now is impacted by certain factors as you transition your business to this core LTL. Can you maybe talk a little bit about weight per shipment trends as you look ahead into next year? Does that start to normalize or rebalance?
Steven Leonard: Yes. That’s a good question. I do think that there are just some dynamics. Like Christopher said, on the dynamic side, we definitely target, freight based on certain characteristics and how it works best from a profitability standpoint. So there has been a little bit of an impact all the way just as we transition a little bit in our mix. And then there’s probably just a little bit of a broader macro backdrop. Again, there has been a little bit of weakening in manufacturing and we have been going through the destocking that probably, contributes just broadly to some overall declines on late. Chris, I don’t know if there would be anything else that you would add on those drivers?
Christopher Adkins: On that dynamic business, we have talked about it tends to be larger heavier freight and says your mix changes that transition from the heavier stuff to the lighter core stuff will have an impact on our weight per shipment pulling it down.
Operator: Our next question comes from Jeff Kauffman with Vertical Research Partners. Please proceed.
Jeff Kauffman: Thank you very much, and congratulations on a very solid quarter. A couple questions. Just one clarification on the Tom Wadewitz’s question. I think what Tom was going after was, the trend in July, August, September in the asset-light business was shipments per day up about 3% to 4%, and suddenly in October that drops to down 6%. And the answer was, destocking sending, so things are getting better, but it doesn’t seem to explain that big drop from September to October. So I guess I was just wondering, because that surprised me a little bit. Is this a function of the restructuring that you were doing on the asset-light side? So, this is really go forward rate? Is October a bit of an anomaly, and we probably shouldn’t read that way on fourth quarter? Or was there a material step down in the asset-light market that caused October to be what it was?
Steven Leonard: I mean, again, for us, I don’t know that I would read too much into it in terms of maybe where we are headed in future quarters. We still see a tremendous opportunity. We are connecting well with customers. The service resonates well. And so we see opportunities to continue to grow. But at the same time, we feel like we are at the near the bottom or at the bottom of the kind of pricing market. And so, we are being careful about what we are doing in bids and that type of thing. And I think you could see that kind of show up in October. But we feel like that’s going to turn. It is going to come back and we will be in a better opportunity to grow and add volume. So I don’t see that as a trend that will continue.
But we have got to work within the given market. And so that’s kind of how we are thinking about it going forward. We have also continued to see growth in the other areas in asset-light. We are seeing managed and in some of our other services. We are starting to add more volume at a higher rate. So, there is some good things going on across asset-light. But again, for me, I want to make sure that we are just making good decisions about price and how we think about the business that we are bringing on and you can see a little bit of that in October.
