Eric Morgan: Hi, good morning and thanks for taking my question. I just wanted to ask on the freight onboarding process this quarter. Your release mentioned you’re focused on ensuring the freight profile was appropriate and margins met expectations, sort of, just wanted to so if you could speak to that process a bit more. Obviously, you took on more freight than others, at least from the outside, it wasn’t profitable at the prior carriers. So just wondering if you could comment on some of the variables you look at with respect to margins, returns, density things like that?
Doug Col: Yes, sure. Our focus is really making sure we understand the freight characteristics that the freight that we pick-up, make sure that it’s understanding what its impact is in our network where we’re going to make those pickups and deliveries. And when you do that, all those things you’ve got to make sure the pricing is right. So we, pretty rigorously review that on an ongoing basis and to the extent that there are situations where. It’s not priced appropriately, then we’ve got have the conversation with the customer or we’ve got to come through and provide the customer – remind the customer the service they’re getting, and then being in a position that we can make the appropriate pricing adjustments. And we started that.
As soon as we saw the changes in the marketplace, we’ve been kind of rigorously on that shows up in our results. You saw the GRI that, we’ve communicated earlier this week, and those are all pointing to. Our focus around making sure that we’re compensated for these high levels of service. We know what our customers are telling us, we watch very closely what the feedback is both internally as we – measure customer satisfaction on a daily basis. And then we watch with third-party say about our – what we’re doing to satisfy the customer. We look at that and we say, listen, the pricing has got to be right, based on what we’re providing to the customer. And that makes it critically important that we do not disrupt service. It had, you only get paid when you provide a great service.
So that’s kind of our focus.
Eric Morgan: Appreciate that. And maybe just a quick follow-up on the end market question, specifically underlying demand. I know you mentioned you’re expecting normal seasonality from here. Just wondering, outside of the industry disruption, if you’re seeing any kind of shifts on the horizon in terms of underlying demand conversations from customers? Thanks.
Doug Col: Maybe there’s a little bit of optimism out there, but I think it’s – we’ll just kind of get a few months under our belt before we think that we’ve steered through choppy waters. But I think that into next year, maybe it’s a little bit more optimism, but we’ll see. I mean, I’m kind of a – we’re sort of show me. Let’s see the evidence of things being better. In the meantime, let’s focus on handling the freight for the customer. So when the business does and the market does return, which I think whenever that is, be it next year or the year after, we need to be in a position where the customer says, we got great service from Saia. So we’re going to stay here and that we continue to grow that relationship. So today, I don’t know that there is a big call out there, but it’s – we’ve continued to operate through this.
Eric Morgan: Thank you.
Operator: Thank you. Your next question comes from the line of Ravi Shanker with Morgan Stanley. Please go ahead.
Ravi Shanker: Thanks. Good morning, guys. Apologies if I missed this earlier on the call, but did you say how much excess capacity you have right now in the network?
Fritz Holzgrefe: Yes. We think it’s about 15% to 20% across the whole network.
Ravi Shanker: Got it. So if you have 15% to 20% on the door side, and obviously, like not much of anything on the kind of variable side given what happened this quarter. I’m wondering kind of what happens next year when volumes come back with the up cycle, right? I mean, how do we ensure that there is operating leverage and you guys can grow that capacity? Is it just a case of really adding more resources now? Or kind of how do we think about operating leverage when the cycle goes up?
Fritz Holzgrefe: Yes. I mean, what we look at right now, we’ve had a pretty big step-up in shipment count. So we’ve immediately, as we saw that develop, really ramped up our recruiting efforts, and we added 1,000 employees as a result of that. And I think we’ll be judicious about that. But I think as we continue to scale, we will continue to add resources where it’s appropriate. And I think that, that – we feel pretty good about our ability to do that. We’ve also – as we’ve opened facilities in new markets, we’ve done a good job around recruiting there. And I think that’s something that we’ve been successful with. So I don’t necessarily – I think in the next year, I think we can continue to scale the business and look for opportunities as we build density, maybe we find that lower-cost linehaul option, and that’s usually internally resourced linehaul. So if we make that happen. I think we can continue to grow this and build density in the business.
Ravi Shanker: Very good. Thank you.
Operator: Thank you. Your next question comes from the line of Jason Seidl with TD Cowen. Please go ahead.
Jason Seidl: Thanks. Gentlemen, good morning. I wanted to shift the focus back to the additional employees hired. I think you commented that 40% of the 1,000 were drivers. Did you guys experience a little bit of a productivity shift downward, if a bunch of them were from Yellow because you had to train them a little bit more in the quarter? Just curious.
Fritz Holzgrefe: Yes. Anybody that we hire that comes into Saia, we’re going to focus on – there’s a principle that we have, which is we’re going to put the customer first. So that’s the first kind of screen that we think about. We’re going to work in a collaborative environment. And then we have kind of how we operate and provide differentiated service. So that requires an appropriate level of training. And we do that with anybody that we bring through our recruiting process. The worst thing that we can do is that provide sort of uneven service to a customer. A customer can’t – they’re counting on us to provide the appropriate training and the team that will provide the high level of service. So that’s kind of how we think about it.
Jason Seidl: And what percentage of the drivers did come from Yellow?
Fritz Holzgrefe: Listen, what we focus on is we recruit everywhere, and we take a whole range of candidates, and we’ve put people through our process. And once we find the folks that meet those kind of core values we kind of operate from there.
Jason Seidl: Fair enough. And as we look at your sort of legacy terminal network, not the expansion areas, are there any places you foresee that you might be trying to more aggressive at trying to get at terminals to expand?
Fritz Holzgrefe: The exciting thing when you’re providing the service levels that we have, we have an opportunity. We think to grow in just about every market that we’re in the country. I mean we’re thrilled with what we’ve done in Atlanta. We’ve opened two terminals here in the last few years, and we’ve seen great success there. And there are three of our highest performing terminals in the company now in the Atlanta market. Historically, the one term we have, we struggled with. But maybe there’s an opportunity for us to add a fourth year. Because the customers are getting a good experience and you have the opportunity to grow that. So in that case, it’s not a capacity issue. It’s really about just reach to customer. So I think that those opportunities are kind of around the country, and it can be new markets we haven’t been in long and it can be one we’ve been in for a long time. I think there’s – that’s what’s exciting about where we are.
