Phil Yeager: I think the announcement today is really just formalizing things we’ve been working on. So M&A has always been an element of our growth strategy, particularly in the non-asset parts of our business, expanding that logistics offering. We’ve always had the strategy to invest in our intermodal fleet containers and trackers. We’ll continue to do that. I think you’ve seen us be more opportunistic on the return of capital with share repurchases, and we are today announcing or signaling a more rigorous framework around that. So really no change in the pieces, I think just more of a framework to measure a return of capital performance by. I think we all feel good about our acquisition pipeline and we’re optimistic to get an acquisition completed in the short-term here.
Christyne McGarvey: Got it. That’s really helpful. And if I could squeeze one more in, switching gears a little bit on the drayage in-sourcing and some of the other kind of costs or process initiatives. Can you just frame up for us at all sort of the cost benefits that you guys are seeing and maybe how to think about incremental margins in that business going forward in the next upcycle when it comes, if you think it can be structurally improved on the back of these?
Geoff DeMartino: Yes. So we have a pretty strong focus on operating efficiency within our headcount within our kind of below the transportation part of our P&L. Within transportation I think having those that in-source number around 80% may drift down in a stronger market, but we feel like that’s the right balance of fixed costs. Right now, third-party costs are pretty low. It’s a very different story last year in a stronger market. We like to have that flex, but also the ability to in-source on our own fleet. As we do more volume, we are able to leverage our fixed costs as we improve that productivity on our tractors and on our drivers. I referenced earlier a contribution margin just on today’s cost structure. An incremental load with no change in price is going to deliver north of 15% incremental flow through operating margin.
Christyne McGarvey: Great. Appreciate it. Thank you.
Operator: Thank you. Our next question is from David Zazula of Barclays. Please proceed with your question.
David Zazula: Hey, thanks for squeezing me in. Sorry to beat the dead horse on brokerage volumes. But I just want to understand a little bit. You guys said you’re seeing peak and you gained 5% in volumes this quarter, but it sounds like you’re talking about potentially some pressure in the fourth quarter? I mean, is that a factor of customers going away from brokerage on a temporary basis? Or can you talk about what is driving the volume outlook for brokerage in the fourth quarter?
Brian Alexander: Some of that’s just – this is Brian, David. Some of that’s really just the decline after Thanksgiving of what we’ll see just in a softer tail off of the year from what we’re expecting in overall volumes. But I think we’re continuing to driving the cross-sell and where we’re growing with our brokerage internally as well. So, yes, we still think that we’ll continue to stand out in the marketplace in the fourth quarter, but are just anticipating some of that softness as we wrap up the year.
David Zazula: Great. Thanks for the help. And then if I can just get one follow-up. You mentioned some dedicated wins. I know you’ve had some competitors that have lost existing customers. Can you talk to your dedicated retention rate and how it compares to history?
Brian Alexander: Yes, no, we’ve – I would knock on wood. We have done very well with our retention. We have retained our customers. I think our model for doing so, as I mentioned before, is that we see a higher retention when we’re offering them multiple lines of service. So while our dedicated service and assets and management and efficiencies are all really important to our customers, we find that if we can have them cross sold into multiple lines of service, it helps drive that overall operating efficiency, but it also helps with that retention. But we focus on being a very strong operator and making sure that we pass those efficiencies along to our customers and that we position to retain. But it’s also helped us in the bid cycle.
And so we’ve seen a higher rate of our wins on these because they are highly competitive and our deal sizes are growing. I mentioned one of our largest ones will be onboarding later in this quarter and setting us up really well for next year. And those are organic as well as new logo customers that we’re winning with.
David Zazula: Thanks very much. Appreciate it.
Operator: Thank you. Our next question is from Brian Ossenbeck of JPMorgan. Please proceed with your question.
Brian Ossenbeck: Yes. Thanks for taking the follow-up. Just a real quick one. I think you mentioned assessorials were down. Just wanted to see if that was a sequential comment or year-over-year? I think there’s been some providers who have seen a little bit more come out than they initially thought, and you guys took a pretty big hit earlier in the year. So where do you stand on assessorials right now? And kind of at a run rate you expect to carry into next year?
Phil Yeager: Yes, sequentially on the revenue side is flat. The big step down is year-over-year. We do have assessorial costs as well, which we have been reducing sequentially, but not enough to offset the revenue piece.
Brian Ossenbeck: And do those costs come out with more volume, with more fluidity, I guess, better service?
Phil Yeager: Yes, we would expect them to, yes.
Brian Ossenbeck: All right. Thanks for the follow-up.
