Mark Rourke: Yes, I would say broader conversations across the broader spectrum as folks are being, in our view, much more balanced towards the fact that we are long into this cycle. I think what Jim is referencing, there are customers that look, based upon their approach, to be more aggressive, and we think those folks, and as we communicate with them, we’ll take all of that into account on what type of commitments we will or will not make on behalf of that approach. So — but I think increasingly, those conversations, as I said in my opening comments, no one believes we’re in this condition for the long-term. It’s just a matter of when. And I think you’re seeing more balanced thinking going forward than we would have described as we were coming into this juncture in 2023.
Brian Ossenbeck: And then, Mark, for — can you just talk about how you’re positioning the network truck business into this bid cycle? You mentioned hanging on to more spot, keeping some of the capacity as a market, but it seems like that obviously came with the cost, given the performance was loss-making in the fourth quarter. So do you feel like that’s still in first quarter drag? Is there some permanent capacity that needs to come out? Or you’re still just waiting and kind of biding your time until you get the right rate to move this equipment back into the market?
Mark Rourke: Yes, Brian, I think what we try to communicate there is that this is a place presently, we’re not looking to add capital to. We also know from our historical practice that the truck network business, both up and down cycle reacts the quickest to change. And so that’s really our focus, it’s to focus on improving the revenue quality well in advance before we think about adding capital to the network. It does play an important role in support of our customers and the dedicated start-ups. There’s a lot of other things that they bring to the party, but we don’t need to add additional capital there, focuses on margin restoration, and augmenting that network capital that we put into it with our own trucks, with increasingly leveraging power only capability and third-party equipment into that equation.
Operator: Your next question comes from the line of Ken Hoexter from Bank of America.
Ken Hoexter: Mark or — I guess, if we could just kind of revisit the outlook you and Darrell were talking about with Ravi, the $1.15 and $1.30 if you eliminate the $0.10 of gains this year, I guess that gets you — that’s why it’s kind of flattish on the outlook. But maybe, can you talk about puts and takes within that, your mix on volumes and pricing? It sounds like you’ve got fleet growth based on the CapEx. So now is it more that inflation is going to offset the fleet growth and yield growth? I’m just trying to get the puts and takes that are within your flattish outlook.
Mark Rourke: Yes, I’ll start, and I’ll turn the mic over to Darrell here momentarily. But what we’re looking at on growth — first of all, our CapEx guidance range of $400 million to $450 million is down fairly considerably from a year ago because of the catch-up with the OEMs and the age of fleet. So we feel really well-positioned there, but depreciation is up just because of the inflationary cost associated in the last couple of years with that new equipment. From a growth standpoint, Ken, we’re really focused on really two areas, and that would be dedicated where we’ve had sustained success organically, and we have good visibility into both the first and second quarter of a number of start-ups that give us confidence that we will continue to have momentum through 2024.
And then on success of growing our intermodal business, while we won’t look to put additional container and chassis because we have our ratios where we need them to be, we have terrific self-help leverage there with growth without adding trailing capacity, but we would look to add and grow the fleet, the company dray fleet. So we have some tractor growth in there. We don’t really see the need on the trailing equipment, either in intermodal or truck outside of dedicated. And so that’s all reflected in our forward guidance as it relates to CapEx.
Darrell Campbell: Yes. The only other thing I would add is, in addition to the equity gains that you mentioned, that we’re not assuming in the model, there’s lower gain on equipment sales of $30 million, which I’ve mentioned in my comments. And I also talked about safety costs, which we’re expecting to increase, primarily due to premium increases in the market, insurance premiums. And then obviously, our tax rate, which is at 22% in 2023 is expected to normalize. So all those things are headwinds that slightly impact some of what Mark talked about in terms of growth.
Ken Hoexter: Darrell, maybe just a couple of numbers follow-ups. You mentioned asset loss in the quarter, I don’t think you gave a number, was there a number with that? And then intermodal, did you say what percent of boxes are still stacked? And then if you let me get 1 more, I’ll ask about contract rates, but that’s it.
Mark Rourke: We’re going to probably move on after the two. Okay, chance to catch up.
Darrell Campbell: Yes, no number on the loss. But Jim, if you want to jump in on that?
Jim Filter : Yes. So there’s about 15% of the containers that are on stack.
Operator: Your next question comes from the line of John Chappell from Evercore ISI.
John Chappell: Yes. I hate to be so short-term focused, but it seems like this is going to be one of those years where it’s tougher to make a call with visibility until you get closer to see the whites of the eye. So as it relates to 1Q, typically seasonally weaker, but coming off of a kind of a muted peak season, does 1Q in basically all of the different segments look similar to 4Q? Or are there some maybe idiosyncratic reasons why 1Q should be better seasonally as we look at it sequentially?
Mark Rourke: Well, it’s a little early in the quarter, obviously, and we’ve been dealing, at least initially, through the first couple of weeks, we had some adverse weather impacts, particularly, in comparison to the last couple of years. So we’ll keep our, really, thoughts as it relates to the shaping of the year is what we said to this point. We do think it will continue to improve throughout the year and be a bit more robust in the second half, but not offer any more specific guidance yet here in the first quarter.
