Ben Nolan: Hi. So, I wanted to dig in a little bit on – I know on Slide #7, you talk about demand for CLX and the CLX+ or, I guess the MAX service now to approximate what it was last year. And it could just be me being seeing more into this than it is really there, but normally, you are talking about volumes approximating year-over-year levels, so you sort of said, demand, and I know you talked about adding a sixth ship as sort of a spare. Is it fair to say that you were – there maybe was some demand that you missed out on because of whatever you just didn’t have enough equipment in place and now you have a little bit more equipment. So, actually, even if demand is equal, your volume could be higher next year, or am I just reading too much into that?
Matt Cox: Yes. Let me take a crack at that. So, from our expectation of what we know now, of course, we will have two weekly departures for the full year 2024 as we did in 2023, except for the handful of CLX+, now MAX wages post-Lunar New Year when the expedited market demand could be accommodated by the single sailing of the CLX service. So, I think what you will see, and we were effectively full once we ramped ourselves back up after this post-Lunar New Year period. So, we expect – there really is no fundamental changes in our expectation at this point about the number of voyages that sixth ship we have added we do not expect will be results in additional voyage. That vessel is there to stand by as a reserve either the CLX or the MAX service because of a weather event or some other circumstances not able to sail to ensure an on-time departure that our customers rely on and are willing to pay for through our premium rate structure.
So, I don’t think you are going to see a – we are not thinking that there is going to be any significant additional capacity that’s introduced in a very similar profile in terms of how our ships are going to fill up as the year goes on.
Ben Nolan: Okay. That’s helpful. And then if I could, just sticking with the China side, you talked about in the – on Slide #7 there, freight rates being a little higher in 2024 than you are in 2023. I am curious how much of that is contract versus just sort of your expectation for what the spot would look like?
Joel Wine: Well, I will take the first part of that first, Ben, which is that what we are saying about – we are not interested in saying the rates will be higher than the entire year. What we are saying is right now, rates are at a higher point in January, than they were last January, February. And then they found their pricing level after the Lunar New Year ramp-up towards the end of February into March, April, and then they were pretty consistent throughout the year as we reported throughout the year. So, what we are seeing in general is that the overall demand on the volume and rate side should not be that different in the China business. But that said, except January and February, the rates were higher than where we started.
So, that’s the comment about rates for the whole year. And then the question on contracts, we don’t see a significant change in the percentage of contracts. We certainly have important contract with our customers. But the majority of the freight still moves as freight forwarders on short-term one-week, two-week, three-week out basis.
Ben Nolan: Okay. Alright. And then last for me, just on Alaska, you mentioned it a little bit doing – or anticipating perhaps a little bit more business from drilling activity and energy activity and lack – and that had always been, as I recall, a market where you said there might be more touch points that you could add in time as part of the logistics program. Are – either organically or inorganically, are there opportunities emerging to add to what you are doing in the Alaska business here?
Matt Cox: Yes, I think the short answer is yes. I think we – as we talked about it in our prepared comments, I do feel like Matson since the acquisition, 5 years, 6 years ago, have really focused on two areas of growth – or three areas. One, of course, was the acquisition of Span Alaska in our logistics business, and that business has continued to grow faster than market. We have invested in new distribution facilities, two in the state, one in Anchorage and one in Fairbanks that have led to strong growth in that segment. But on the ocean transportation side, really, there are two segments that we focused on. One is the – in the Oil and Gas segment that Horizon Lines, our previous company had not focused very much on, and we are now seeing it as a growing component of our freight flows.
And right now, the dynamics in Alaska for exploration and production are good. And we are aware of our customers looking at large multiyear projects, and we expect to benefit from that additional volume in drilling and production. The other one, of course is the seafood exports outside of – on the Aleutian Islands, Kodiak and Dutch Harbor primarily to international seafood markets and buyers in Asia in our scope of services. And so those are the two verticals that we have seen most directly that we have grown ourselves into. And frankly, we continue to see more growth opportunities in both of those segments moving forward.
Ben Nolan: Alright. I appreciate it. Thank you, guys.
Joel Wine: Okay. Thank you.
Matt Cox: Thank you, Ben.
Operator: [Operator Instructions] And our next question will be coming from Jack Atkins of Stephens. Your line is open.
