Schneider National, Inc. (NYSE:SNDR) Q4 2022 Earnings Call Transcript

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Jack Atkins: No, that makes sense. I guess my point is you guys are just doing an outstanding job really across the business. And I just don’t know if the stock is getting a lot of credit for it. So I guess maybe for my second question, I would love to kind of get your thoughts on sort of the increasing strategic value that trailer pools are providing. We’ve touched on it a lot? But as you guys are going through bid season here in 2023, to what degree, having such a large trailer pool and the ability to deploy trailer pools to customers, is that helping you navigate through this bid season, maybe better than folks would have anticipated if you go back a year or so ago, just kind of curious how that’s impacting rate negotiations, if at all?

Jim Filter: Yes Jack, this is Jim. The real opportunity here is also for our customers because with this large trailer pool and being able to integrate both the asset base where we’re using a company driver and using third-party being seamless to our customers gives us some flexibility that you don’t have if we’re just limited to one or the other. And so that’s providing additional value for our customers and additional value for our enterprise.

Jack Atkins: Okay, thank you.

Mark Rourke: And Jack, as we get into the allocation season, obviously, we’re looking for where those may complement each other or where we could add and take a broader share and do so in a way that’s easy for the customer to say yes to us and obviously easy for us to say yes to that increased share. And so really pleased with the flexibility the integration and the collaboration on those networks that trailing asset allows us to share back and forth and be effective in doing that.

Jack Atkins: Thanks again for the time.

Operator: Our next question is from Chris Wetherbee with Citi. Please proceed with your question.

Chris Wetherbee: Hi, thanks good morning guys.

Mark Rourke: Good morning.

Chris Wetherbee: I wanted to touch on intermodal again, if I could. Maybe to ask sort of the margin question a little bit differently. Obviously, you’re not updating the long-term forecast, but there’s a major shift, obviously, changing the carriers, the providers that you’re using? So kind of curious, do you feel like there’s any uptick that you might get or any increased dynamic aspects of the pricing arrangement that you have with the new railroad out West that could influence how margins play out, particularly in 2023 when obviously, there’s going to be pressure on truckload rates?

Jim Filter: Yes, our deals with all of our railroads are long-term deals. They’re market competitive, and there’s, some adjustments in the structure that we work with that we just don’t get into details about how those necessarily work. But we believe that this is going to put us in a very competitive position when we look at how we’re operating, and it doesn’t matter if we’re talking about competing with truck or what the competitors are on the rail. We bring some differentiation on the UP. The fact that we are bringing the largest company dray fleet using our own chassis. We’ll be the only one that has a large chassis fleet using all of our own chassis and our company drivers are able to be more productive. So we feel like we compete well in all directions on this new rail partnership as well as the – just tighter integration between the UP and the CSX having more steel wheels and expect that as we grow this network, we’ll be able to expand that and create even more seamless options for our customers.

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