Mario Harik: Sure. Ken, we’re actually doing both. So, when you think about our sales efforts, I mean, again when you think about the investments we have made in capacity and the improvements in service and the investments in our salesforce, the goal is to grow profitable national accounts and very profitable local account business as well. So, when you look at the fourth quarter, as an example, with the local accounts, shipment count is up mid single digit. So, we are actually going after both. And for the national accounts, we remain very disciplined with the type of freight we are getting into the network. I mentioned earlier on one of the metrics we look at internally is the balance — is a lane balance factor and we are onboarding business that enables us to improve that factor and which will make the local accounts more profitable over time as well. But you need a combination of both to be able to drive higher margins over time.
Operator: Thank you. Our next question comes from the line of Jeff Kauffman with Vertical Research Partners. Please proceed with your question.
Jeff Kauffman: Thank you very much. Good morning everybody. I want to go back and talk about the network maybe through a different lens. And I want to think back about 18, 19 months ago, when GXO was spun out. And we had that quarter where the LTL network struggled with service because of that purchase — we were in-sourcing transportation and a number of customers, as you mentioned, your average customer tenure 16 years, kind of steered freight away from the network for a couple of quarters. You guys were in the penalty box until service has improved and you got driver staffing at appropriate levels. If I look at where the network is today versus where we were in that aftermath, not a year ago, but say 18 months ago, I’m just kind of curious where has the network improved?
I know Mario, you were talking about the damage frequency was one of the best ever. But kind of talk about where service levels are relative to maybe where you were pre that issue 18 months ago. And in terms of the customer business, it got steered away from you. In the aftermath of that, you didn’t lose customers so much. They just didn’t give you as much freight. Have you gained all that back? Is there still some of that customer freight that’s out there that we’re looking to bring back in the network now that the service metrics are better? Just kind of — I want to look at it through a slightly different lens and understand what’s where it needs to be, what is not yet where it needs to be and how you’ve recovered relative to where you were?
Mario Harik: Yeah. Jeff, so, when you look at our service levels, I mentioned this in my opening remarks, our damage frequency has improved 66% year-on-year in the fourth quarter, and it’s the best it’s been in six years of any quarter in six years. So, when you look at it from that perspective, obviously, not only really covered from the 18 months ago, but we’re now on a path to get back to company records in terms of the quality that we offer to our customers. And similarly, our on-time service was up 14 points on a year-on-year basis in the fourth quarter. Now we do surveys with our customers on a weekly basis, and these are live shipping customers. And the customer satisfaction in the fourth quarter, exiting the month of December was a company record when we started doing this a couple of years ago in terms of taking that satisfaction.
So, the improvement has been dramatic and the improvement has been very effective, and we hear it from our customers. Now going back to your question on the customers that we could have lost, obviously, when we onboard business, some of it is existing customers where we are expanding the amount of business that we do with. To give you an example, recently — I mentioned last quarter, we onboarded a new 10 customer. That was a customer that was doing a small amount of revenue with us prior and now the amount of revenue is multiple. I mean, we’re talking more than 10x the amount of volume that they used to do with us pre those improvements. So, we see a direct correlation between the improvements we’re making in service and customers wanting to give us a bigger share of wallet and giving us more business as well.
Jeff Kauffman: If I could follow-up on that just for a second. About early 2022, I mean, there’s always been a gap between the year-on-year yield improvement XPO versus the peer group. And it feels like that gap is closing a little bit the last few quarters. And I remember early 2022, it was — oh, we can’t really push price with customer because the service is still healing. Are you past that? And are there gains that you can still make on a relative basis, like maybe relative to peer group now that the service is at these levels, is that something we should see in 2023?
Mario Harik: Yes. We are past that in terms of service. And again, when I talk to our large customers we’ve onboarded, I consistently get the feedback that we are one of the top carriers in terms of service quality. Now obviously, with some of the existing customers that could have left us due to service issues in the past, these as they come back, that takes time to be able to grow that — the share of wallet with them as well. But generally, when we think about the impact of service, currently, we are providing close to best-in-class service and we up and to the right trajectory of continuous improvement and focus on it.
Jeff Kauffman: Okay. Thank you.
Mario Harik: You got it. Thanks Jeff.
Operator: Thank you. Our next question comes from the line of Brian Ossenbeck with JPMorgan. Please proceed with your question.
