And it’s the same thing in the local east. We saw a sequential improvement there in the local east in January. We saw that consistent and getting more momentum at about 10% over December, and that’s a lot of capture from over-the-road conversions. So, we think that we timed it well. We had about 43% of our bids going live in Q1, and we positioned in Q4 to time it right, and then another 18% of those go live in Q2. And so that’s going to drive a lot more of that volume and velocity that helps us cover the fixed expenses, but also staying disciplined on margin.
Jon Chappell: Great. That’s very helpful. Thank you, Brian. Thanks, Phil.
Operator: Thank you. Our next question comes from the line of Jason Seidl of Cowen and Company. Please go ahead, Jason.
Jason Seidl: Thank you, operator. Good morning, gentlemen. A couple quick questions here from me. You mentioned that there’s going to be some cost controls that accelerate, as we move through the year. Can you give us some more details and maybe tell us where you expect that, to show up in the P&L? And also on the container side, you said you’re going to basically pause, any more container purchases. Can you talk to us about, where the fleet’s at and what percent of the fleet, is actually in use right now versus a big part?
Phil Yeager: Yes. This is Phil. So from a container perspective, we have around 20% that’s currently stacked. We’re in the process of actually unstacking, as we’ve seen some momentum here. Brian mentioned some of the positive signs we’ve seen December to January, and that’s actually pre some significant startups that, we have over the next couple of weeks. So there’s some unstacking. We think that’ll come down sequentially throughout the quarter. But given the amount that, we have stacked as well as the improvement, and utilization that we can drive, we don’t see any need, to add any additional containers at this point. It’s obviously going to drive some pretty significant free cash flow generation for the year. On the cost side, and I’ll let Brian and Kevin jump in here.
We’ve done a really nice job on managing our overhead expenses, our headcount down 15% on a year-over-year basis. And we’ll be thoughtful around hiring and returning to growth there, but want to make sure that we’re remaining diligent as we’ve done a very nice job in resetting our cost structure for the current environment. I think we’ve also done a really nice job as well around reducing cost drayage and improving our purchasing. I mentioned that was down 25% year-over-year in the fourth quarter. We’ll see that trend continue not only as we insource more and get more productivity out of our drivers, but we’re also going to continue to be very diligent around third-party drainage costs. And then Brian also mentioned our new chassis agreement in the West.
That’s going to be very helpful from a margin perspective. And we’ll start to see that really show up in the second quarter. It’ll be kind of radically rolled out throughout the first quarter and start to show up there. And the last piece I would just highlight is rail costs. We’ll likely see some benefits sequentially as we head through Q1 as well as into Q2.
Brian Alexander: Yes, I’ll just add to a piece on specific to brokerage. We’ve seen the volume grow with there. It’s a really industry standout with what they’ve done. We’re really proud of that. But they’ve also improved their productivity, and their team productivity. We’ve got a good roadmap of IT initiatives that are set to roll out throughout the year that’ll, further enhance that productivity within our brokerage and help control that cost.
Jason Seidl: That’s good color. If I can go back, Phil, to the 20% that you said you have stacked and you said that number should come down with 43% of your bids going live in Q1 and 18% in Q2. What number should we expect to see by the end of 2Q here on that 20%? Should it be down to like 15%, or is it going to go below that?
Phil Yeager: That’s a little unclear to me. I don’t know exactly at this point. I would say 15% is probably a good measure. But I think our goal is to get improved utilization at the same time, right. We’re really focusing on balance and trying to win the right business that fits our network. And so a little tough for me to say exactly. We might have some temporary imbalances where we increase repositioning costs, or we make a decision to stack or to unstack, because we think the volume is going to be there longer term. Those are things we’re weighing on a more tactical perspective. But – it’s a little difficult to say, but I would say likely you’re talking about 15%, or maybe a little bit under that.
Jason Seidl: Sounds good. Appreciate the time. Thank you.
Operator: Thank you. Our next question comes from the line of Bruce Chan of Stifel. Please go ahead, Bruce.
Bruce Chan: Thanks, operator. And good afternoon, everyone. Maybe just to follow-up here on the revenue growth side. I’m not sure if I missed some of it. It sounds like you’re off to a pretty healthy start for the year on the volume side. How should I think about the cadence of low growth versus pricing growth and intermodal as we move through the year? The idea that we’re higher on the volume side, and maybe that subsides a little bit in the back half of the year and pricing accelerates there. So maybe just some commentary on how revenue growth proceeds through the year.
Phil Yeager: Yes. Kevin mentioned, I think when you look at ITS, volume is likely going to be down again year-over-year in Q1, be up in Q2, and then accelerate as we have both new wins coming on, but also lower comparables in Q3 and Q4. I think around that as well, we would certainly hope that in that 31% that’s coming out to bid in Q3. And we’re getting positive price, which would be incremental. And then certainly we hope if there’s any normal seasonality in Q3 and Q4, you’d see some sort of surcharge revenue that’s coming in there, as well that would certainly be upside to our revenue projections. I think the other piece that is built in there is onboarding within our Logistics segment that, we have good visibility to as well as the Final Mile acquisition is adding some significant revenue as well. So, those components together really are leading to the revenue guide. Kevin or Brian, anything you’d add?
