Adam Miller: Yes. So that’s a business that obviously has been challenging over the last, I think, now four quarters and we’re working on what we can do to kind of mitigate those losses. And there’s several things that we’re working on. It’s probably improving or tightening our underwriting standards in the near term. We’re looking at some reinsurance opportunities that could help, which is eliminating some of the volatility or the outstanding liabilities we have currently on the balance sheet. So that is underway. And really, I think everything’s on the table to be able to kind of work through mitigating our losses there. And do we expect to see a lesser loss into the 2024? Certainly from where we are and I think there is measures we’ve taken to do that, but we needed to move a bit quicker than it currently is.
And we — in a difficult cycle, this is the last thing that we need is a business that has been a bit challenging for us and we’ve got a lot of people working towards that and looking at every different alternative to approach it and we think we’ll see some progress here, both in the fourth-quarter and as we get into 2024. And if we find some of these strategies that help us eliminate that liability sooner rather than later with the reinsurance option, we’ll move quickly on that, if we find it to be appealing.
Jon Chappell: Got it. Thanks, Adam.
Operator: Your next question comes from the line of Amit Mehrotra from Deutsche Bank. Your line is open.
Amit Mehrotra: Thanks, operator. Hi David. Hi Adam, excuse me. I guess, there is an expectation that earnings can be up meaningfully next year and I know you guys do an exceptional job kind of pivoting to where maybe the opportunities present themselves. So there is obviously that opportunity or potential next year. But I guess the question, David, I want to understand how you’re thinking about how expectations are calibrated for next year? How you think the slope of the recovery from here? Can it be more muted? Is there an opportunity to see gaps higher if you think those opportunities are likely to show up? We’re just kind of late in this year now and demand doesn’t seem to be there and I’m just trying to understand kind of getting your head a little bit and how you’re thinking about the recovery path from where we are today.
Adam Miller: Yes. Well, thanks, Amit. As you know and I think we’ve referenced in previous calls that these kind of recoveries on the truckload side start with some volume increases and then volume begets a little bit of rate improvement and then volume and rate improvement beget earnings. And so this will be a gradual process, our comparisons to start the year are not going to be as easy, but they — they’ll get a little bit easier as we go in to — we hope into next year on the truckload side. Now if you look at our business, so we’ve got this LTL business that’s going to continue to chug away, we expect that to be very predictable, we expect that to be very positive. And then we’ve got this, maybe large call option, if you will on the truckload space with U.S. Xpress, the business that’s very close to breakeven.
And that as there’s some — as we have another bid season to work with, to work on the network and a little bit of strength, all of a sudden that does give us quite a significant sale if you will if the wind decides to blow that we have not had in the past. And so, I think, as we mentioned a couple of quarters ago this is somewhat of a try and make sure that our — we’re trying to make sure that our cycles, that our peaks in the cycle in terms of earnings performance, outperformed the previous cycle. And so, as far as the timing to predict, that’s a little bit beyond our control and very difficult to do so in the truckload space. But for us, we’re just heads-down preparing ourselves to be ready for that, to be ready in terms of how our business is committed, the kind of relationships we have on the truckload side and just kind of where the operation is.
