Adam Miller: Yes, I think it’s a combination of multiple things, just like any business that’s operating at that level. It’s not one thing that you have to get done. I think there’s going to be some opportunity to pick up some additional volume in the bid season, as we’ve got our rates with our rail partners adjusted based on the way our contract is structured with them. So I think that puts us in a better position to be aggressive there. I think we’ve got some operational efficiencies, we need to work through in terms of how we manage chassis. And I think we’ve made some progress there. And we started the quarter out on a rough start, but we saw that sequential progress all the way through, till we got to a level of profitability, just slightly in September, and we expect to continue that momentum.
But it will be something that just takes time to work through and service is improving at both the West and the East. I think customers that had moved freight off of the rail to the truckload because of the issues with service are looking at that again as an option. And I think we’ve got some great relationships on the truckload side, that we still don’t do much with on the intermodal side, that I think we’ll be able to open up those doors. So it’s going to be a combination of all those factors, Ken that we think will get us to a good position where that’s a business that can compete with the top providers there and generate a margin in there. Hopefully, high-single-digit, low-double-digit depending on where we’re at in the cycle.
Ken Hoexter: But, I don’t know if I can just clarify, it sounds like those were working with customers that — is that longer-term or because you said you’re going to get the profitability fourth-quarter or did I miss something or is that bid season that already happened, that’s going to happen quickly?
Adam Miller: I said, as we got to slight profitability at the end of the third quarter and we expect that to continue into the fourth quarter. So to be profitable there, but not where we — not where we’re targeting to be. I mean, that’s going to take a few more quarters as we work through the operational efficiencies we need to pick up, as well as work through the bid season to pick up more volume and address rate.
Ken Hoexter: Thanks for that clarification. Appreciate it guys. Thanks.
David Jackson: Thanks, Ken.
Operator: Your next question comes from the line of Allison Poliniak from Wells Fargo. Your line is open.
David Jackson: Hi, Allison.
Unidentified Analyst: Hey guys, it’s James on for Allison. Just wanted to actually kind of go back to some question on the truckload rate. Like, basically it seems — you said they are still under pressure, you’re still seeing costs elevated, but there is a sort of an amount of capacity that’s still out there. Just wanted to get your thoughts on what you thought was allowing that capacity to stay in there and sort of when do you think it might exit or if there is a particular type of event that needs to happen for it to exit? Just wanted to kind of get your thoughts on sort of the pace of capacity and exits.
David Jackson: Yes. Well. I appreciate the question, James. I think we’re — what we’re seeing is a pretty extreme resourcefulness on the part of small carriers to survive. And it’s hard to say if it’s the fact that the used equipment market hasn’t completely collapsed like sometimes it does at this stage of the cycle, perhaps it’s kept folks on the financing side maybe willing to make some accommodations. Don’t know to what degree that is the case. But there could be that for sure. You have individuals who if — if it is one or two truck operation, that might be temporarily living out of a truck. And just to get by through the bottom part here. We know through our exposure to small carriers that they are under extreme pressure and juggling kind of cost and low on cash-flow.
