Jason H. Seidl: Appreciate the time, gentleman.
Operator: Thank you. The next question comes from Tom Wadewitz from UBS. Please go ahead, you line is open.
Thomas Richard Wadewitz: I wanted to – just kind of a fine point first. You talked about the slowing in October, but didn’t really quantify it. Can you give a little bit of a – truckload load growth is up, I think you said 13% for 3Q. Is it up like low single digits in October? Or is it 10% plus? Or is there any more kind of fine-tuning on that? You can give us just to understand how much slowing there is.
Drew M. Wilkerson: Yes. Truckload volume was up, let’s call it, mid-single digits, and overall volume was up double digits.
Thomas Richard Wadewitz: Okay. Great. Yes. If I look at the – I think you had some questions on this. I think Scott asked about it. And it seems to me like a significant kind of overhang on 2024. It’s just that transition process of eventually spot rates are going to go up, right, which I understand is ultimately good for the business. You’ve got 80% on contract. And so that’s maybe – that’s a pretty heavy skew to contract. I don’t know – if do you think you’ll be able to adjust the contract rates more quickly than prior cycles? Or would you say, hey, there is a fair bit of risk that if spot rates go up, then we will have kind of a normal cycle period where we do get squeezed on the gross margin percent?
Drew M. Wilkerson: Tom, the first thing is I would remind you and everyone that this business can shift and shift quickly. So like I told Scott, the squeeze can be for a matter of weeks, and you’ve seen this business shift this mix shift from contract to spot by more than 1,000 basis points quarter-over-quarter. So while there would be a little bit of a squeeze, the other side of that is a good thing, and the squeeze doesn’t have to last that long, depending on the capacity of this exit in the market as well as depending on demand.
Thomas Richard Wadewitz: Okay. And if I could, just one more quick one. On the attrition, you were asked about Convoy, I think that’s high profile, but there are a bunch of other kind of midsized brokers leaving. I think normally focus on carrier attrition. How do you think about broker attrition? And whether that’s a significant enough factor to help you — help the bigger brokers help the stronger brokers like yourself as you go through the cycle? Or is that just noise?
Drew M. Wilkerson: Tom, any time there’s disruption in the carriers exiting a routing guide, that’s a good thing for our business. It doesn’t matter if it’s an asset-based carrier or if it’s a broker that is doing that. So with the noise that has been there, I would not call that a ton of capacity is exiting the market, but it has created some noise which has created some mini bids and obviously, you followed us for a long time. You know that we’ve got great relationships with our customers. Our largest customers have been with us for over 15 years on average. And what they’re going to do whenever they have disruptions, they’re going to come to us. And that’s going to be the same thing for the prior question that we were talking about is as soon as there are spot loads, they’re going to go to the people that have delivered for them time and time and time again, and that’s all right too.
Thomas Richard Wadewitz: Great. Okay great. Thanks for the time.
Operator: Thank you. Our next question comes from Alison Poliniak from Wells Fargo. Please go ahead, you line is open.
James F. Monigan: Good morning, guys. James on for Alison. Just kind of wanted to follow up on this point around exits and the expectations for it to accelerate. Like essentially sort of what’s the mechanism around it? I mean it seems like there has been some level of improvement from a bottom in that market. Like is there sort of a way where we could see sort of the improvement move to a place where the carriers might be encouraged to hang tough and we could see an elongation here? Or – and if that’s – or is there really need to be sort of another leg of spot rate pressure to sort of accelerate those exits?
Drew M. Wilkerson: I think the hanging tough is what you’ve seen over the last 6 to 9 months, when carriers have already been running below the operating cost of what it takes them. So for us, we believe that you have seen the hang tough. And now it gets to the tougher time that they can actually go out and do something else and earn potential income for themselves.
James F. Monigan: Got it. And then you mentioned the LTL side of it, do you any sense of like the percentage of revenue and sort of what you could possibly see that growing to over sort of the next 12 months?
Jared Ian Weisfeld: It’s Jared. So we mentioned on the prepared remarks that it’s about 17% of our total volume, and it continues to grow. It grew 55% year-over-year in the current quarter. When that business is at scale, it’s going to provide a nice stable earning stream for the business and really provide a nice opportunity for us to grow. We continue to get rewarded LTL freight from our largest TL customers based on the exceptional service and the customer relationships that we have, and we don’t see that stopping.
