As I mentioned in my opening remarks, we are adding new tools to the field such as higher-quality straps, airbag systems, racks in service centers. We are improving the instructions of how we load trailers and training associated with that. And all of these will lead to better service, which over time would also lead to a higher yield. Now again, the pace of the disruption here that we’re seeing would accelerate, but it’s tough at this point to predict what it’s going to look like given it’s all fairly new over the last few weeks.
Chris Wetherbee: Okay, that’s very helpful. And one point of clarification. Do you expect more share to come over in the coming weeks? We talked about the run rate exiting July, entering August, but is that share shift largely done or do you think there’s incremental room for that to go from here?
Ali Faghri: Good morning, Chris. This is Ali. It’s hard to know at this point how much incremental share is going to come our way. As Mario mentioned, we’re being very disciplined with the freight that we’re bringing into the network. Our priority is to make sure that it’s good freight that fits our network, and most importantly is margin-accretive. And so, that’s our strategy as it relates to the incremental volumes. And then we’ll give you another update in terms of August trends in early September.
Operator: Our next question is from Jon Chappell with Evercore ISI. Please proceed.
Jon Chappell: Thank you and good morning. Ali, quick one on Europe. I mean, is there any update there on the sales process or even the desire to do that as the market continues to improve? And I ask mostly for an update, but also there is this gain on equipment and sales. Are you looking to maybe sell that off in piecemeal when you get opportunities, or are you still kind of holding off for a big sale when the market is conducive?
Ali Faghri: Good morning, Jon. So in the fourth quarter of last year, we did announce that we won’t be selling the European business in the near term. And we’re not going to address the potential sale further beyond what we had said in that December filing. That being said, our long term plan remains to be a pure-play North American LTL carrier. Having said that, as Mario noted, that business continues to perform well in a soft macro backdrop. Our organic revenue was down slightly. And we saw constant currency revenue growth in both our UK business as well as our Central Europe business as well.
Jon Chappell: So what did the gains then relate to?
Kyle Wismans: The gains are related to the asset turn-in, so it’s part of a normal process, Jon, for turning in equipment out there. So, part of normal business.
Jon Chappell: Okay. Thanks, Kyle. Thanks, Ali.
Kyle Wismans: Thank you.
Operator: Our next question is from Jordan Alliger with Goldman Sachs. Please proceed.
Jordan Alliger: Yeah. Hi, good morning. When we sort of thinking about volumes differently from a capacity perspective, I think, if memory serves, last quarter I think you talked about maybe 20% spare capacity at the terminals, given the soft demand conditions. Maybe I might not be right on that, but given all that’s going on with Yellow and given where your network is today. Where you feel comfortable drawing that down to. I mean, can you go to 5%, 0%, just curious. Thanks.
Mario Harik: Thanks, Jordan. Well, first on the capacity side. We ended the second quarter at roughly 20% excess capacity from a physical capacity perspective. So think doors and service centers. And that moderated down, call it, to the mid-teens here in the month of July as we’ve seen that impact in higher volumes. Now, usually on a longer-term basis, we want to be in that 20% to 25% range of excess capacity. Now, as you know, in an LTL network, it’s not linear. So you have some markets where we had excess capacity. And then we have other markets where we already are — we are at capacity and the goal is to add these — in these markets where we need those extra doors the additional physical capacity. On the rolling stock side, we are feeling very good based on where we are now over the last year and a half.
