James F. Monigan: Can you give any sense of percent of revenue or percent of profit?
Jared Ian Weisfeld: We’re not talking about that as a percentage of revenue. But from a percentage of volume standpoint, it was 17% in the quarter, and we continue to expect that to increase.
James F. Monigan: Thanks.
Operator: Thank you. Our next question comes from Bruce Chan from Stifel. Please go ahead, you line is open.
Jizong Chan: Hey thanks, operator. Good morning, everybody. Drew, you talked about a very nice move up in loads fulfilled digitally versus last year. When you think about cycle recovery, can we maintain those levels of digital fulfillment? Or is there more manual touch that’s required to onboard the spot business? And then maybe just a related question there. When you think about the headcount, you’ve been adding here and investing aggressively as you put it, do headcount additions need to accelerate even more as the cycle comes back?
Drew M. Wilkerson: Yes. Thank you. So when you look at the digital, we’re at 97% created or covered. We have made significant progress with our customers, and we do not expect that to slow down. On the carrier side, we still got a lot of white space to go. And we do expect that to accelerate over the next 6 to 12 months. Your second question on headcount. We’re investing appropriately in the business in terms of headcount. We’ve said before that we like to stay staffed for growth of 15% overnight if we need it. And that’s the position we’re in right now. When the market turns, as you’ve seen us do before, we’ll be able to handle the volume. We did that during early parts of COVID when we were growing volume 20% and 30% on a year-over-year basis. So we’ve got the team that’s prepared to handle it and the customer relationships or we know that the volume will come our way when that time comes.
Jizong Chan: Okay. I appreciate that. And then just going back to the first question, when you think about the differences in the spot business versus the contract business, is it materially easier to create those loads digitally for contract versus spot? Or is there not an appreciable difference?
Drew M. Wilkerson: Well, on the customer side, it is easier for them to be created on a contract load than on a spot. That – you’re right on that.
Jizong Chan: Okay got it. Thank you.
Operator: Thank you. Our next question comes from Brian Ossenbeck from JPMorgan. Please go ahead, you line is open.
Brian Patrick Ossenbeck: Maybe for Drew, just to come back to the whole contract spot mix, I guess what gives you some of the confidence or maybe give us some conversations around this in terms of the confidence level and getting the big shippers to really provide the spillover freight, the spot loads rather when the market does turn. I imagine part of that depends on the strength and timing of the market turn. But just wondering how you can get some visibility or confidence that then happens because I think in the past, we’ve seen some of your peers expect something similar, but ended up not quite living up to the turn they thought and ended up running lower for longer?
Drew M. Wilkerson: Yes. Brian, this is in our first radio. We’ve seen this before. When you look at what has happened as the market is it flat, you’re right, we don’t know the shape and the timing of the recovery. But what we do know is we’re talking to our customers every single day. We know that whenever there’s opportunities right now in the markets that we’re in, when there’s disruption, they’re coming to us to create solutions. We know that we do business with 58 of the Fortune 100, and over 200 of the Fortune 500. We’ve got a lot of white space with customers that we don’t do business with. Our pipeline is in very good position. So we’re confident that not only will we get the contract piece of the business, but we’ll be rewarded on the spot piece of the business. We’ve got great service and our customers come back to us because we understand the blocking and tackling of picking up and delivering on time and showing them complete visibility of the loads.
Brian Patrick Ossenbeck: Okay. So I guess when you think about cadence of renewals for next year, with the mini bids and things have changed, and obviously, the market is still quite dynamic. Is that sort of normal? Most of them done in the fourth and – fourth quarter and the first quarter. Do you expect that to stretch out into next year? And this – I know you mentioned it earlier, but just what are the initial indications in terms of where people expect rates to go? Do you feel like people are going to take some shippers might take one more crack at this to get a lower rate and worry about what happens on the other side?
Drew M. Wilkerson: Yes. So the bid season is typically in the latter part of Q4 and then through the first quarter of next year. And what we’re seeing right now, we’re starting those conversations with customers. And as I said earlier, some of the rates are coming in right in line. Some of them are slightly above, some of them are slightly below. So I think that when you’re talking about shippers taking another crack at it, what shippers want is people who are dependable, who provide good service, who have had partnerships for a number of years and who are giving them a fair market price, which is what we’ve always done. For us, we’ll go out there, we’ll give them the fair market price, but when the market inflects and you start to see tender rejections creep up, that’s when we’re confident that we’ll be the beneficiary of the spot loads that come out.
