Adam Miller: What I’d also note, Ravi, is over the period, if you look at the last 4 weeks, you’ve had the holidays where you have a lot of small carriers’ independent contractors who were freight is in plentiful. They will take time after in the market. So that puts a little pressure on finding capacity. You may see a blip in spot. And then you have the same issue as you go through weather where you have a lot of trucks, especially the safe ones that are shutting down and that puts pressure on the market. I mean, we see it in our own markets today, but it’s not necessarily because demand is there, it’s because you just don’t have supply readily available. So I think as we watch as the weather starts to clear up, and we watch those trends over the next few weeks. I think that will be a little bit more telling than just looking at the last 4 throughputs.
Operator: And your next question comes from the line of Ken Hoexter from Bank of America. Please go ahead.
Nathan Ho : Hi, this is Nathan Ho dialing in for Ken Hoexter. Just wanted to focus a little bit on the encouraging signs coming out of the US Xpress integration with a 99% operating ratio and the 100 basis points of sequential improvement. Now that the segment is contributing a little bit of operating profits, I’d love to understand a little more on what’s next for further alignment of its business structure. And within your first quarter and second quarter targets, what are you expecting in terms of further cost and growth synergy gains? Thanks.
David Jackson: Nathan, thanks for the question. Maybe I’ll start off and Adam, you can certainly chime in. And first, I used this as an opportunity to just acknowledge the wonderful people we have at US Xpress couldn’t — I can’t say enough good things for how they have gone to work and work together with us the degree to which they’ve been open to collaborate. We’re just — we’re excited for them. I think that they’re excited to be part of the group. And maybe to answer your question about structure and how that changes. This is a brand, an independent brand that we support. And so we have 2 leaders that have moved to Chattanooga. They did this several months ago in anticipation of the transaction. And so they are there. They are tax paying residents of Chattanooga and have assimilated with the team.
And so that business will continue to perform independently. I’d say that thus far in these first 6 months, the progress has probably been two-third cost, one-third rate. That likely flips here as we go into the next 2 quarters where rate continues to grow as cost doesn’t grow at the same kind of pace, but there still are cost opportunities. As was mentioned, that Adam mentioned with the slide that we highlighted a few key things. One of those was doing directly with our customers, not going through a broker, intermediary. And so the sales group, the operations group have worked very hard to — when they had an abrupt change and needed to deal direct. And so that’s been a positive to the rate per mile. If we look at — just overall, the approach in the network and their approach to bids, we’ve been able to bring a different mindset in terms of how they can go about building the network, and they’ve been very receptive to that.
And so now we’re receiving a steady diet, I would say, kind of across our business of about 110 bids a week is the going rate. Some of those can be mini-bids, some of those are much larger network bids. And so that’s feeding into this decentralized operation that US Xpress is well on their way towards that we think will lead to lower driver turnover, better operating cost with a high level of service and good returns, good revenue generated on our trucks with ORs that over time, we believe, will be in that low 80 range, similar to what we would expect over time in our Swift and Knight brands. Adam, anything else?
Adam Miller: I mean, I think you hit it well. Again, I’d just highlight being more active in the bid season, probably having more opportunities with customers that have relationships with our other asset-based brands that will open doors for US Xpress. And then just continued progress on closing the rate gap between US Xpress and our other asset-based brands. And so I think we’ll — we expect to make progress. It’s tougher to do that on rate in an environment where you don’t have much wind at your back. And so they’ve been able to make sequential progress despite that. When — I think there is a more favorable environment, we’d expect that progress to ramp up very quickly.
Nathan Ho: Got it. That’s very clear. Thanks, Dave, thanks, Adam.
Operator: And your next question comes from the line of Bruce Chan from Stifel. Please go ahead.
Bruce Chan : Thank you, operator. And afternoon, gents. Just insurance side, it was good to see the progress with growth in the LTL segment. Maybe just wanted to get your thoughts on the time line for how those new terminals are going to come online especially as you start to think about the potential for maybe any margin drag as you spool that network up, anything that we should be watching there as we model out the OR?
