Jim Todd: Elliot, for us, it’s a little bit of a tough read there, because our ocean revenue per load, it’s not just container costs. Our rev per load also includes things like inland transportation, to and from the ports, custom fees, and duties. And it’s niche with respect to the agents that participate in the kind of project stuff that we’re working on. So I wouldn’t use that as a read-through.
Elliot Alper: Got it. Understood. So, maybe to follow-up on the LTL side. Load was down 15% in the quarter. Can maybe talk about the current LTL environment, maybe what your expectations are, first quarter, first half of the year, maybe what you’ve seen through January? Maybe some of these new terminals upfront CLOs [ph] come online?
Jim Gattoni: Yes, as you know, we don’t really own any assets and we don’t have any terminals. So we’re kind of more of a nichy play in there where we take our truck customers and we do some LTL for them. So in a market — the market for us is really tied to some specific customers. So we have a little bit of customer softness in our Top 10 customers, and we anticipate that’s going to continue on, but being 3% of our business, and really specific to maybe 20 of our agents or 30 of our agents doing a bulk of it, it tends to just move more in line with our customer base than with kind of industry dynamics. It’s almost a little like the ocean pricing. Our ocean pricing is not an indicator of what’s going on in the industry. It’s more special project type stuff. LTLs are little bit similar to that as we provide a little bit more special hands-on service on the LTL side for certain of our customers.
Elliot Alper: Got it. Thank you.
Operator: Thank you. We will now move to the last caller to ask a question coming from the line of Stephanie Moore of Jefferies. Your line is now open.
Unidentified Analyst: Great, good morning. Thank you for squeezing me in. This is Joe [indiscernible] on for Stephanie. I’ll echo everyone’s comments, congrats to you, Jim. I guess I just kind of maybe wanted to circle back, lastly, on the BCO count. We’ve talked previously about broadly higher highs and higher lows. How do you see that dynamic in the context of sort of the BCO count under pressure now? And we’ve talked a lot about what’s causing that pressure, but I was curious if there was anything that you could add as it relates to regulatory definition with independent contractors or anything like that that might be causing maybe a longer term structural pressure on the BCO count? Thanks.
Jim Gattoni: Yes, thanks, Joe. So, back to the higher highs comment. We’re a great place to be for owner operators who want a lot of freedom and independence. And it’s a freedom to be successful and it’s a freedom to stay and it’s a freedom to leave. And I think we’ve seen a little bit of that just with the volatility in the market. As I said earlier, I don’t think there’s anything systemic there, there’s interest. I think BCO count will rally as the opportunities are here. I think we’re the best model for that. Now, there is pressure out in California with AB5 that’s kind of sitting with the judge after the trial to try to make some decisions there. There’s — with the current administration, continues to question, what’s an independent contractor and what’s not.
And we keep an eye on all that stuff. We think we’re very well prepared in the case of AB5 in California. We were very proactive. We don’t think that’s going to be any sort of a negative for us. If that were to spread across the country, for some in the other states, would we have some work to do? Yes, sure. But we really lost very few BCOs as it relates to AB5 and we would hope that we would come out similarly if it were to move to some other states that are kind of on that list of where it might expand.
Unidentified Analyst: Thank you so much for the color.
Operator: At this time, I show no further questions. I would like to send a call back over to you, sir, for closing remarks.
Jim Gattoni: Well, first off, I’d like to thank everybody for having. This be my longest call in 10 years on my last day as the CEO, President and CEO of Landstar. So that’s special. But before I sign off on my final Landstar earnings conference call, I want to thank all of Landstar’s agents, BCOs and employees for your contributions to Landstar’s 2023 performance in a very challenging freight environment. The people in Landstar’s unique network of agents, capacity providers and employees are what truly sets Landstar apart in our industry and enables success we all achieve together. It’s been my privilege to have worked at Landstar for the past 28 plus years and a professional honor of a lifetime to serve as the Chief Executive Officer of Landstar over the past decade.
I’m truly grateful for the opportunity to have been a part of this network of agents, capacity providers, employees, customers and shareholders, as well as the Landstar Board of Directors who I have had the pleasure of working with over the years. I’m highly confident in the Landstar Business Model and its superior management team. And I know I leave a leadership in good hands as Frank Lonegro assumes the role of President and CEO. I now pass it to Frank for some closing comments, Frank.
Frank Lonegro: Thanks very much, Jim. On behalf of all of the agents, BCOs, carriers, customers, employees and shareholders that you’ve so positively impacted during your career, our heartfelt congratulations on your retirement. We wish you nothing but the best as you embark on this next chapter of life. I’m both excited and humbled to join Landstar’s next CEO and appreciate the Landstar Board giving me the opportunity to lead this great company. Landstar’s unique tech enabled asset light agent-based model will continue to be the key to our success. And I look forward to working with the Landstar team to support our independent business owners and drive profitable growth and value for our shareholders. With that, we’ll bring this call to a close and look forward to speaking with you on our first quarter call currently scheduled for April 25th. Thank you very much.
Operator: Thank you for joining the conference call today. Have a good morning. Please disconnect your lines at this time.
