And so I think if they continue to over tighten, that could cause some issues. But I think you go back to, okay, we’ve got the self-help initiatives, we’ve got the diversified end market exposure, we’ve got some other things going for us, seeding more company drivers shifting away from LP, lower margin LP owner operator drivers. So we’re pretty bullish on things to come.
Jason Seidl: I appreciate the color on that. I wanted to try to dive deeper into your comments on the contract market. I think you said you started seeing some softness in November, but it seems like it’s trending up now. Can you give us some numbers behind them?
Jonathan Shepko: Yeah, I don’t have numbers right now to kind of provide but I think that part of this really goes back to Jason, the customers — look our shippers are just frankly becoming a lot more sophisticated. And, when they’re seeing the spot market fall since January of 2022 and they’re looking at their contracted rates, you can’t ignore that. And, so what we had is October, November, there were some softening, as I mentioned in July. And, I think what you’ve seen with a lot of these shippers is they’ve really recalibrated their RFQ process and their RFQ approach. And so a lot of these guys now are going, you know what we’re going to go to our ship, we’re going to go to our carriers, on the — I’m speaking on the Flatbed side.
We’re going to go to them before they’re softer, kind of low points in the year when they’re really focused on getting freight, really focused on visibility going into Q4 then in Q1 and we’re going to ask him to submit rates and submit pricing for that. They’re going to be hungrier because they want that visibility going into softer part of the year. And then they’ve also added an RFQ cycle in April. So right in front of our peak season, right. So they’ve kind of hit you and said, look we want you to really be hungry for capacity going into your down point. And then before you have a good sense of really how good Q2 or Q3 is going to be for you, we also want you to put to kind of bid the freight. So I think that’s part of what you saw. So it said really in keeping with October, November laid down where a lot of those guys have come out before our kind of seasonally soft time of year and said, hey, bid this freight, really playing on everybody’s concerns, expectations, that it could get a little tougher.
And so I think that push if that’s what you saw manifest and a little bit of a leg down for us in October on contracted rates.
Jason Seidl: Appreciate all that and last one, and then I’ll turn it over to somebody else here. Obviously, you mentioned that debt repurchase is sort of top of the list here. Can you talk about what are you targeting first, is it the Series B preferred? And then I guess if you can give any comments on the acquisition market and how it looks now and maybe what you guys would be looking forward, if you were to pull the trigger on something?
Jonathan Shepko: Yeah. So from a debt standpoint, I think we’re looking at debt pretty holistically. We had — there was a kind of a stark difference in opinion between the two ratings agencies on whether or not that new preferred should be treated as equity or debt. One said it should be treated as debt and one said it should be treated as equity. We’re focused on really how our investors, our shareholders evaluate that new security. But we’re looking at that holistically and it’s going to be probably a meaningful pay down when we ultimately make it. We really want to — again, we really want to start to approach in a quick way, structure approach that one and half to two terms of gross leverage target that we have now, it’s a long term target.
