Adam Miller: Yes. I mean it’s tough to say. I mean, I know — look, the guidance is kind of our best guess based on what we know in the market today. I don’t want to say it’s aggressive. I don’t want to say it’s conservative, and this is what we feel is kind of down the fairway with the knowledge that we have today for — so it’d be tough to point out one of the data points as being more uncertain than another.
David Jackson: Well, if Washington somehow messes with tax rates, that would be the biggest. So we’ll start there, if we can’t stay at close to 25% tax rate. Does that help you, Bert?
Bert Subin: Yes. I think that moves the needle. Yes, go ahead.
David Jackson: Realistically, Bert, rate per mile — if rate per mile — weird, weird things happen with rate per mile. Obviously, that’s a big lever to move. But we’re not sitting here looking at a market that’s about to slow. Spot rates peaked 13 months ago. And so I mean — so we already are well into this. And so if you can predict what’s going to happen with rates, you can predict a lot of things. And so nobody knows exactly how that’s going to go. But we’ve seen significant resiliency in our rate per mile through this year as a result of the way we’ve built the business and the way we do things, but also the relative value that we create compared to other folks. And so you’d be hard-pressed to go back and find any other cycle where you went peak to trough in longer than 18 months.
It’s just — you just don’t find it. I mean often, it’s — you don’t see the double digit — or you don’t see the declines in over 12 consecutive months. But you’d be hard-pressed to find peak to trough in greater than 18 months. And this — we’re already over 12 months into this, and this one was not was not precipitated by an oversupply of equipment coming into it like every other cycle was. And so that gives us a little bit of little bit of a glimpse into what we can expect both in contract rates as well as spot rates that we think will rebound in the back half of the year. So — but that would be — I mean that would arguably be the biggest lever in the guidance.
Bert Subin: Maybe just put another way, Logistics, the manner in which you operate it is certainly different from several years ago. And LTL is a new business altogether for Knight-Swift. I guess my question is maybe how do you get comfortable with those assumptions because Logistics OR, you’re implying sort of low double-digit to high single-digit margins, which would be fantastic, particularly in a bad year. In LTL, somewhere in this sort of mid-low teens range on margins, both would be really good and haven’t really played those out through a down cycle, at least in their current form. So I know you’ve talked about your models consistent. I’m just curious, are those not — there’s not a ton of uncertainty there for you? It’s more on sort of how contract rates play out?
David Jackson: No. I would say there’s less uncertainty in the LTL world. I mean they just perform — it performs just so much more consistent than full Truckload does. And then we have a bit of a secular story on top of what’s going on in the industry. And that’s — the secular story just has to do with the kind of synergies and opportunities we have and what can come from a super-regional that could connect large portions of the country and allow us to compete in some of the national arena already. And the other side of that, I would tell you, is wages continue to go up. LTL industry wages are on pace for probably about a 5% increase to the wage of those drivers. Now that’s different than LTL or different in full Truckload.
