Fritz Holzgrefe: Thanks, Tom. The way I think about this is you got to start with what you think the macro assumption is going to be in the second half, and that’s kind of that — whatever that is. And from my perspective, I think it’s probably a pretty — I don’t see anything that would say that it’s going to be a big change, but it could be, right? In the second half, we could see growth that comes out of that. What I would specifically say though, as I look at Saia’s position in the market, I look at this as we open these facilities, we’re on an equal footing with some of the other national carriers. And I think from a quality perspective, I think we’re on a leading position versus some of the national carriers. And I think that is if we continue to focus on the right mix of business, there’s a share gain for us, opportunity, not only in the first half as things continue to settle, but into the second half.
So I think it’s in a more tepid environment, it’s probably at the low end of any sort of range, right, in terms of shipments and tonnage growth. But I think that our — focusing on what we can control, there’s an opportunity for us to continue to grow through the market. Now in a more limited sort of economic environment in the second half, it’s probably a little bit slower. But the opportunity is there for us, and we’re very focused on that.
Tom Wadewitz: Okay. Thank you. And then the other question would just be like so you’ve added people in 4Q, I guess you’re probably more calibrated to the volume you anticipate on the people side than the terminals, right? The doors can sit there even if you don’t use them, but the people you don’t want them sitting around. So what would you say, given the current headcount level, what have you calibrated for in terms of shipment growth given the 1,500 you added? Is it like mid-single? Or is it different than that in terms of shipment growth?
Fritz Holzgrefe: Yes. I mean I think it’s probably consistent with what we’ve seen from the trends we’ve had in the last few months. Doug gave us the update on. I think we feel pretty good about our positioning there. We feel pretty good about our ability to further scale from here if we need to. But yes, I think we’re appropriately positioned right now. But as we go into a seasonally peak times, I think we continue to scale up from here, and that’s our tradition. That’s what we’ve — that’s kind of how we’ve operated it. So I feel pretty good about our value proposition to attract people as we need, and I feel pretty good about we’re staffed right now.
Tom Wadewitz: Great. Thanks for the time.
Operator: Your next question comes from the line of Jason Seidl with TD Cowen. Please go ahead.
Jason Seidl: Thank you. Operator. Good morning, gentlemen. Doug, you talked a little bit about the trends in January on a tonnage basis. Clearly, as you mentioned, weather was a little bit of a hit. If we exclude weather, are you guys in that sort of up 5% to 6% range? Is that how we should think about it?
Doug Col: Well, I mean, it’s probably better to talk about shipments. Shipments per workday up 11.8%. Definitely, a little bit of the shine was taken off that from weather. I mean we’ve continued to see a weight for shipment impact from some of the business we’ve picked up since last summer’s event. So I’d say the 11.8% shipments per workday would have had some upside. We, as all of our other competitors had a lot of days impacted in January by weather. And your terminals are just either closed or they limited operations or they’re making a few deliveries, but they’re not able to pick up freight, the customers close that kind of thing. So that’s not unusual for January or February. It just happened, but I’d say thinking about the 11.8% number, it could have been better.
Jason Seidl: Okay. Fair enough. And as we think about — you guys obviously took on a bunch of terminals here from the Yellow dispositions. But there are still a bunch of other leases that have not been told out yet. Is there anything on there that you guys could acquire as well?
Fritz Holzgrefe: So Jason, we are aware of everything that’s still in the market, and we kind of continuously look at those assets as well as others in our pipeline. So yes, that’s part of potential opportunity for sure. And maybe some of those assets are particularly attractive to a competitor, and maybe that’s an opportunity for that competitor to move from their current facility to a new facility. And then maybe that leaves — creates an opportunity for us in another facility. So it’s, yes, I think there’s potentially some opportunities.
Jason Seidl: And do you know the timing of the next round of those assets?
Fritz Holzgrefe: Good question. We monitor it closely. I’m not aware of anything right now.
Jason Seidl: Fair enough. Gentlemen, appreciate the time. Nice quarter.
Fritz Holzgrefe: Thank you.
Operator: Your next question comes from the line of Bruce Chan with Stifel. Please go ahead.
Bruce Chan: Hey, thanks, operator. Good morning, Fritz. Good morning, Doug. Just a couple of cleanups here. You talked about the OR progression a bit. But when you think about the SWB line specifically, is that growing faster than other expenses this year due to that elevated headcount? And if so, by how much? Or is there maybe some offset there because you’ve got less overtime spend? Maybe just some comments around the potential squeeze on that line item?
Doug Col: I mean, I expect it to go up, right? I mean as we bring on our own employees and like just trend-wise, have been able to get folks onboarded and trained and stuff. I don’t put upward pressure on that line. And on the driver side, you’ll probably benefit because we removed some PT where we decide to do things like that. And then we still have wage inflation out there. So, as we open new terminals, we’ve got to get them staffed before the opening, so we can get them trained and everything like that. So the ramped-up opening plan, the preopening expenses go up and some of that’s wages. So yes, I think that line will be — you’re going to see wage increase, salaries, wage and benefits increase.
Bruce Chan: Okay. That’s helpful. And then just on the PT side right now, how much rail are you using in that outsourced percentage? And directionally, as you think about it long term, do you expect that number to go up or down or stay relatively flat?
Doug Col: Yeah. I mean it’s come down. When we needed to move the freight, a lot of it was in lanes where we couldn’t optimize and use rail when things really ramped up last July, August, September, even into October. So we were heavier there on the truck side for a while. And it’s probably in this environment, it’s more normalized back at that kind of low 60%, high 30% range truck to rail and we’ll see seasonally what develops. And that’s generally how that team manages it. When they get a chance to, they’d love to use rail.
Bruce Chan: Okay. That’s great. Thank you.
Operator: Your next question comes from the line of Ravi Shanker with Morgan Stanley. Please go ahead.
Ravi Shanker: Thanks a lot, gentlemen. I think you said that you have about 20% excess capacity in the network right now. Just given the CapEx number, kind of are you looking to expand that closer to 25% to 30%? Or kind of what’s the normal run rate? Kind of do you expect to stay at 20%?
Fritz Holzgrefe: Yes. I mean I think we would expect that CapEx is going to help us expand that, right, and more on the equipment side, so particularly at trailer investments. So, those are important that gives you flexibility, the value — the incremental value you can provide to your customer, that’s really important. So we’d look to drive that capacity a bit there, expand that capacity a bit.
Ravi Shanker: Got it. And maybe just a related follow-up. I think just given like post the Yellow auctions kind of given how much of the LTL capacity kind of stayed within the LTL space, and given the step-up in organic CapEx you’re seeing from you and some of your peers, is there a risk that not as much capacity comes out of the network as we all thought like back in June or July? Kind of what’s the risk that in maybe some of the kind of less disciplined players in the space kind of run away a little bit?
