Ken Hoexter: So Fritz, it’s not like you’re saying, hey, we’re opening five because we’re seeing some opportunities. These are already in progress and that will decelerate from here on and maybe comment to the second half unless we see things improve. Is that a better way to look at it?
Fritz Holzgrefe: Yes, exactly. You know what? If we feel better about the second half or more confident, I should say, we could add more. We could come back and say, hey, Ken, we’re going to add five, six more. We could do that. But right now, we like the next five, and we like the fact that we’ve got a lot of opportunity in the last 18.
Ken Hoexter: So I know you don’t give out the fuel expense specifically. And 1 of the things that I think a lot of investors have been worried about was the amount of profits that were coming off of fuel surcharges. And it seems pretty thin this quarter with your fuel surcharge revenues up, call it, $41 million year-over-year. And I know you don’t break out the fuel category, but the whole category was up 37%. So I guess, your thoughts on the ability to sustain those revenues or that gap as fuel starts rolling over. I think any thoughts you can give us to calm some of those nerves out there that as fuel came down, you’d lose that profitability gap.
Fritz Holzgrefe: Well, I mean the way — I think the first thing I’d make sure we understand is that fuel and fuel surcharge in particular, an important part of the cost structure of this business. So the fuel surcharge program is tied to kind of our base pricing. So that is kind of ongoing, and we’ve continued to make pretty big investments in that. One thing I’d call your — make sure you think about as you study our financials is that, as we switch to change our mix in linehaul from purchase transportation to internal fleet, the fuel cost ends up on our internal fuel line, right? So rather than on the PT line. So that’s part of what you see there is we’re optimizing our linehaul network.
Ken Hoexter: Perfect. Thanks for the
Operator: Our next question comes from Ravi Shanker with Morgan Stanley.
Ravi Shanker: Thanks, everyone. Just a couple of follow-ups from me on the end markets. One is I know you touched upon the volume like a few times, but just kind of at a high level, I think some of your peers on both the LTL and the TL side have spoken about a potential spring inflection in the cycle. Do you underwrite that view? Or are you saying that it’s too uncertain to make that call?
Fritz Holzgrefe: I think I can understand and where that might — the thoughts around that. I think certainly, there is some reason for optimism and the jobs number today was really good. So I think there’s the potential for optimism there. I think as you — as we reset our business, we want to be in a position that as the economy gets stronger, we want to be able to take advantage of that. So we’re positioned for that. I think there’s definitely some possibility we could see some — second half could be better. But at the same time, if there’s other sort of macro shocks that could take it in a different direction. But it seems like increasingly, we’re seeing a more kind of a little bit more optimism in the back half of the year. So that would be good.
