Todd Fowler: Yes. Okay, Tom, those are all really fair comments, and I appreciate the thoughts around kind of how fuel helped ’22 and you guys being prudent about what you can control and what you can’t. I appreciate the thoughts this morning.
Thomas Schmitt: Thank you, and we’ll keep using your analysis.
Operator: And next, we can go to Scott Group with Wolfe Research.
Scott Group: Can you just really quickly go through the monthly tonnage for 4Q and start of 1Q?
Rebecca Garbrick: Sure, Scott. So in October, our tonnage was down 11%. In November, our tonnage was down 12%. And in December, it was down 15%. And in January — through the end of January, we’re seeing about a 16% decline year-over-year.
Scott Group: And was — do you — any chance you have the monthlies for Q1 a year ago?
Rebecca Garbrick: I do not actually. I’m sorry, Scott.
Scott Group: We can get those later. Okay. When I think about the fuel headwind that you guys talked about, is there any of that in Q1? Or is that really all starting in Q2? I just want to — I mean, it feels like maybe Q2 is the biggest of that fuel headwind, so that could be the biggest year-over-year earnings decline. Is that fair as I think about the quarterly cadence, Tom?
Rebecca Garbrick: Yes, Scott, that’s right. I mean if you remember, right, I think June was like the peak of all of the fuel that came in. It was up over like , I think, at that point in time. So it was — I think Q2 is when we’ll see those fuel headwinds. I think in Q1, we’ll see a bit of a tailwind. So I think you’re right in your thinking.
Scott Group: Okay. Okay. And then just lastly, I think this year’s GRI a little bit smaller than last year. Just any color around that and just how it’s — I know it’s early, but how it’s sticking so far?
Thomas Schmitt: Yes, let me talk about this. And let me — the first calibration, the — yes, we used just to make sure everybody is on the same page here, we used 5.9% this year. It became effective on Monday. Always the first Monday in February. And last year, the number was 7.9%. The one thing that we should say upfront is, and I’m going to make two comments here. The first comment is we always look at pricing as an overall picture. Part of that big picture is actually fuel surcharge. And we always look at left and right, what do others in our space do as they service their customers and then we make adjustments. So late fall, Scott, we did make an adjustment in the fuel surcharge table that’s worth about 2 percentage points.
So we looked at that and then we looked at the GRI kind of as a package, we said we want to make sure we keep our customers and us in a space where it works for both of us. So there’s a bit of an end proposition here between the fuel surcharge adjustment in November and the 5.9%. That gets us into similar territory as we were last year. And now in terms of how is it playing out? Every customer is getting a GRI and the sales team and the customers did a tremendous job collaborating over the last several weeks about where we can grow with them, and we have more than 200 agreements in place where in some cases, if there’s real growth that’s substantiated and we track this on a monthly basis, that customers can kind of save more as they do more with us, meaning there’s a mitigation where if someone goes with us in key veins that are good for them and good for us by 10% or 15%, then there’s a mitigation of that GRI.
