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

Jim Filter: Yes, I don’t think storage revenue is that big of a deal because that’s not something that you make money on, you’d rather have your assets out there generating additional earnings rather than the cost to stack in store or pulled on to that equipment. So whether it’s there or not doesn’t necessarily have an impact on earnings.

Mark Rourke: So Tom, as we get through this allocation season here, as I mentioned in my opening comments, we’re looking for several customer threads. How are they thinking about the locations of the import decisions that they make between the East and the West, and there has been some shift to the East as there’s been concerns about fluidity and as that’s now improved and returned, how are they thinking about that this year and going forward. Obviously, the emission reduction piece is a very powerful trend in the favor of intermodal and there’s, different customers at different locations along that spectrum where that’s important. And then obviously, we have to then see the differential between the value proposition between pricing between over the road and intermodal to include the dynamic of fuel and how that impacts those decisions.

So there’s a lot that kind of goes into that customer. We certainly tried to show where value can be derived through those combinations. And the beauty that we have is that we are – we don’t really care if it’s over the road or intermodal. We have options on both of that. So we’re agnostic. We’re really trying to put the best solution to front of the customer that meets what they’re trying to accomplish.

Tom Wadewitz: Okay great, thank you.

Operator: Our next question is from Brian Ossenbeck with JPMorgan. Please proceed with your question.

Brian Ossenbeck: Hi, good morning, and thanks for the time.

Mark Rourke: Good morning, Brian.

Brian Ossenbeck: So maybe – on the last part, Mark, what’s the visibility you have to taking share back from the highway that’s obviously a big focal point of the industry, and you’ve talked about it several times today. But spread savings spreads are probably coming down. You mentioned some of the factors that are going to affect that, but demands probably weaker in the near term? So if you have visibility to that coming back in, is it a little too early with bid season? What’s the level of confidence in, I guess, connection you have to sort of plan for that coming back? And how much headway do you think you can make this year as service improves and the transition is done?

Mark Rourke: Brian, well, it is a little bit early, but I would tell you, our customers are enthused about getting back to an intermodal option that they can put into their allocation mix in a more aggressive way. And for all the reasons we just talked about cost commissions, et cetera. And so, we’ve all been working in a way to give them more confidence that they can do that with a good service product in the end. And I know our rail partners are intently focused on that as well. So we’re optimistic as we sit here in, I guess, the first couple of days of February. And – but it’s really early in that process. But the dialogue that we’ve had really throughout last year and we’re always in constant dialogue around what customers are trying to accomplish and how all the services we have fit. So – but we’ll have a better feel for that as we get out through the April, May time frame. Jim, so maybe…