Phillip Yeager: Sure. Maybe I’ll start with truck capacity where I think that CapEx has been limited at replacement levels really for the past couple of years. So the ability to really net add to the overall truckload capacity has been limited. And I think you’re also starting to see with spot market rates at these levels, small and midsized carriers really starting to exit the market. And so it’s our estimation that truckload capacity is going to continue to tighten, which will make intermodal a more conducive sort of path to be able to move freight. And I think with improved rail service, which we’re very confident that’s going to be maintained, a lot of folks are going to be looking at transloading solutions to be able to get into big box and really move that freight inland through the West Coast ports.
So that would be our view. We’re out really promoting right now, as Brian mentioned, tighter transits and a mid-90s sort of on-time performance. We obviously need to prove that as volumes continue to pick up, but we feel very good about the investments we’re making as well as our rail partners to sustain that service.
Ravi Shanker: Very helpful. Thanks guys.
Operator: Thank you. Our next question comes from the line of Justin Long of Stephens. Your question please, Justin.
Justin Long: Thanks. I wanted to ask about the guidance for gross margin percentage. Is there any additional color you can provide on the quarterly cadence of that metric? Just curious where you’re expecting to start the year in the first quarter versus finish the year in the fourth quarter? And I know you talked about Intermodal price earlier, but anything you can share on the pressure you’re anticipating in accessorial.
Phillip Yeager: Sure. And those two would kind of go hand in hand. I think we — from a margin percent perspective, we’ll start the year stronger probably in a similar spot to where we finished 2022. And we would anticipate that those — that margins would decline as a percent in the second half with softer pricing and with less accessorial revenue, but then offset that with increased volume to drive the dollars. Does that makes sense?
Justin Long: Got it. That makes sense. And then are buybacks factored into the guidance for 2023. And I just wanted to clarify the comment earlier around container ads that you made, Phil. It sounded like you’re modeling a 5% to 6% increase this year. Was that on a growth basis? And then, I guess, on a net basis, you’re assuming something less than that, but still positive. Just wanted to clarify.
Geoff DeMartino: That’s correct. Yes. It’s 5% to 6% on a net basis. We didn’t — we’ve got some containers that have reached end of life that we’ve held off on retiring, but we are going to pursue that this year.
Phillip Yeager: And then your other question, the guide does not assume any share buybacks or acquisitions.
Justin Long: Okay. Helpful. Thank you.
Operator: Thank you. I would now like to turn the conference back to Phillip Yeager for closing remarks.
Phillip Yeager: Great. Well, thank you for joining us on our call this afternoon. And as always, if there are any questions, please feel free to reach out to Brian, Jeff or I, and hope you have a great evening.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
