1 00:00:07,440 --> 00:00:10,240 Speaker 1: Hi everyone, this is Lee Clasgow when We're Talking Transports. 2 00:00:10,280 --> 00:00:13,440 Speaker 1: Welcome to Bloomberg Intelligence Talking Transports podcast. I'm your host, 3 00:00:13,560 --> 00:00:17,680 Speaker 1: Lee Klaskow, senior freight, transportation and logistics analysts at Bloomberg Intelligence, 4 00:00:17,960 --> 00:00:20,759 Speaker 1: Bloomberg's in house research arm of almost five hundred analysts 5 00:00:20,800 --> 00:00:24,560 Speaker 1: and strategists around the globe. A quick public service announcement 6 00:00:24,640 --> 00:00:27,480 Speaker 1: before we dive in. Your support is instrumental to keep 7 00:00:27,480 --> 00:00:30,520 Speaker 1: bringing great guests and conversations to you, our listeners, and 8 00:00:30,560 --> 00:00:33,280 Speaker 1: we need your support. So please, if you enjoy this podcast, 9 00:00:33,360 --> 00:00:35,839 Speaker 1: share it, like it and leave a comment. Also, if 10 00:00:35,880 --> 00:00:38,960 Speaker 1: you have any ideas, feedback, or just want to talk transports, 11 00:00:39,120 --> 00:00:41,040 Speaker 1: I'm always happy to connect. You can find me on 12 00:00:41,200 --> 00:00:44,879 Speaker 1: the Bloomberg terminal, LinkedIn, or on x at Logistics Lee 13 00:00:45,159 --> 00:00:48,200 Speaker 1: and We're delighted to have with us. Matt Piat back 14 00:00:48,240 --> 00:00:51,800 Speaker 1: onto the podcast. He is the CEO of Arrived Logistics, 15 00:00:51,800 --> 00:00:55,360 Speaker 1: a firm he co founded in twenty fourteen. Arrive is 16 00:00:55,400 --> 00:00:58,920 Speaker 1: the thirty fifth largest logistics company and the eleventh biggest 17 00:00:58,920 --> 00:01:03,480 Speaker 1: freight broker to transport topics. Welcome back to the podcast, Matt. 18 00:01:03,280 --> 00:01:06,039 Speaker 2: Thanks Lee, and look forward to our conversation. Last year, 19 00:01:06,040 --> 00:01:08,160 Speaker 2: I think it went pretty well, so hopefully can add 20 00:01:08,160 --> 00:01:09,560 Speaker 2: some value to your listeners this time. 21 00:01:09,959 --> 00:01:13,080 Speaker 1: I'm sure you will. And just you know, I mentioned 22 00:01:13,560 --> 00:01:16,880 Speaker 1: on the intro that Arrive is a broker freight broker. 23 00:01:17,680 --> 00:01:20,399 Speaker 1: You know, could you provide a little more background into 24 00:01:20,440 --> 00:01:23,440 Speaker 1: the company before we delve into the markets. 25 00:01:23,880 --> 00:01:26,680 Speaker 2: Yeah, absolutely, so, as you said, Arrive was found in 26 00:01:26,800 --> 00:01:29,880 Speaker 2: twenty fourteen. You know, we primarily focus on the middle 27 00:01:29,920 --> 00:01:32,480 Speaker 2: mile part of the supply chain in North America, and 28 00:01:32,520 --> 00:01:35,760 Speaker 2: so originally we did a lot of transactional freight in 29 00:01:35,920 --> 00:01:39,440 Speaker 2: the United States that has since grown to now a 30 00:01:39,560 --> 00:01:42,679 Speaker 2: heavy balance of contractual and transactional, and then we have 31 00:01:42,760 --> 00:01:45,920 Speaker 2: recently moved into Mexico and Canada. You know, we really 32 00:01:45,920 --> 00:01:48,160 Speaker 2: don't touch anything in the air, we don't touch anything 33 00:01:48,160 --> 00:01:51,560 Speaker 2: on the ocean. We are very primarily focused on full 34 00:01:51,600 --> 00:01:55,440 Speaker 2: truckload transportation and recently have gotten into a few other 35 00:01:55,520 --> 00:01:59,080 Speaker 2: modes like partials. In a very small presence in the 36 00:01:59,200 --> 00:02:01,960 Speaker 2: LTL market, but you know, ninety plus percent of revenue 37 00:02:02,000 --> 00:02:03,040 Speaker 2: is that truckload market. 38 00:02:03,720 --> 00:02:07,320 Speaker 1: Okay, And just everyone is not familiar with kind of 39 00:02:07,360 --> 00:02:10,760 Speaker 1: the lingo here, so you can just explain what the 40 00:02:10,840 --> 00:02:14,480 Speaker 1: middle mile is in transportation. Yeah, So middle mile. 41 00:02:14,600 --> 00:02:16,160 Speaker 2: You know, the way we kind of think about that is, 42 00:02:16,680 --> 00:02:20,040 Speaker 2: you know, bringing it from distribution center to retailer or 43 00:02:20,080 --> 00:02:23,200 Speaker 2: from manufacturer attribution. And so when you see the eighteen 44 00:02:23,240 --> 00:02:25,840 Speaker 2: wheelers on the highway, you know that is primarily what 45 00:02:25,919 --> 00:02:29,520 Speaker 2: we're focusing on. We're not delivering to the end user, 46 00:02:29,720 --> 00:02:34,160 Speaker 2: you know, appliances. We're really focusing on the entire buyout 47 00:02:34,200 --> 00:02:36,720 Speaker 2: of the truck and moving it from point to point. 48 00:02:37,040 --> 00:02:38,959 Speaker 1: Do you guys do you do you guys keep track? 49 00:02:39,040 --> 00:02:42,120 Speaker 1: Like what's the average length of hall of a typical shipment. 50 00:02:42,400 --> 00:02:43,200 Speaker 3: That's a great question. 51 00:02:43,280 --> 00:02:46,679 Speaker 2: Every single broker and every single asset based carrier would 52 00:02:46,680 --> 00:02:48,800 Speaker 2: probably answer that a little bit differently. It depends on 53 00:02:48,840 --> 00:02:51,040 Speaker 2: the customer mix, your modal mix, the type of freight 54 00:02:51,080 --> 00:02:53,760 Speaker 2: that you're moving. But at an aggregate level, you know, 55 00:02:53,919 --> 00:02:56,280 Speaker 2: depending on the market, we're as low as six hundred 56 00:02:56,280 --> 00:02:58,040 Speaker 2: and fifty miles and we're as high as seven hundred 57 00:02:58,080 --> 00:03:02,320 Speaker 2: and fifty miles on an average you know length. You know, 58 00:03:02,360 --> 00:03:06,680 Speaker 2: obviously the regional shorter length of haul is historically more 59 00:03:06,720 --> 00:03:10,880 Speaker 2: conducive to the asset based carriers. They really dominate that region. Also, 60 00:03:10,960 --> 00:03:14,239 Speaker 2: the digital brokers that still are around have tried to 61 00:03:14,240 --> 00:03:16,760 Speaker 2: build their business on that regional you know, more local 62 00:03:16,800 --> 00:03:19,560 Speaker 2: freight as well, and so we're really you know, more 63 00:03:19,560 --> 00:03:22,800 Speaker 2: instrumental in that middle mile seven hundred, you know, thousand 64 00:03:22,880 --> 00:03:24,280 Speaker 2: type mile move right. 65 00:03:24,320 --> 00:03:26,920 Speaker 1: And you know, you mentioned, you know the fact that 66 00:03:27,000 --> 00:03:29,839 Speaker 1: ninety percent of your revenue is tied to the full 67 00:03:29,880 --> 00:03:32,480 Speaker 1: truckload market. But you're, you know, you're you're growing these 68 00:03:32,480 --> 00:03:36,360 Speaker 1: other markets. Is the growth in those other markets like 69 00:03:36,480 --> 00:03:40,360 Speaker 1: LTL or partial or maybe cross cross border, are those 70 00:03:40,440 --> 00:03:43,000 Speaker 1: growing more than your traditional business? 71 00:03:43,960 --> 00:03:44,800 Speaker 3: You know, it's crazy. 72 00:03:44,920 --> 00:03:46,880 Speaker 2: You know, I'd sit here and tell you I wish 73 00:03:47,000 --> 00:03:51,320 Speaker 2: that our modes were growing at a higher percentage. Our 74 00:03:51,440 --> 00:03:55,720 Speaker 2: dry truckload business is so strong that we're growing, you know, 75 00:03:55,760 --> 00:03:58,360 Speaker 2: we're up almost thirty five percent year every year in volume, 76 00:03:58,960 --> 00:04:00,400 Speaker 2: and when you compare that to a lot of our 77 00:04:00,400 --> 00:04:03,720 Speaker 2: peers that are your negative or flat, we feel very 78 00:04:03,800 --> 00:04:05,920 Speaker 2: very confident our ability to drive that, you know, drive 79 00:04:05,920 --> 00:04:09,200 Speaker 2: that truckload market. And so our other modes are growing 80 00:04:09,320 --> 00:04:12,120 Speaker 2: very quickly, but they're actually growing about thirty percent year 81 00:04:12,160 --> 00:04:15,080 Speaker 2: over year, and so you know, it's just it's hard 82 00:04:15,080 --> 00:04:17,240 Speaker 2: to keep up with, you know, our core competency that's 83 00:04:17,240 --> 00:04:18,640 Speaker 2: got a lot of really good momentum. 84 00:04:19,240 --> 00:04:21,479 Speaker 3: But yeah, they're growing. They're growing a great clip. 85 00:04:21,680 --> 00:04:24,000 Speaker 2: And I wish they were growing even faster, but you know, 86 00:04:24,120 --> 00:04:26,200 Speaker 2: at an aggregate level, they're pretty close. 87 00:04:26,640 --> 00:04:28,560 Speaker 1: Yeah, you know, you mentioned you know, the market is 88 00:04:28,600 --> 00:04:31,800 Speaker 1: not really growing. Uh, it's you know, depending on you know, 89 00:04:31,800 --> 00:04:35,159 Speaker 1: which broker you talk to. Most of the legacy ones 90 00:04:35,200 --> 00:04:38,040 Speaker 1: that have been around for a while, are you know, 91 00:04:38,400 --> 00:04:41,600 Speaker 1: down single digits to up single digits and volumes? What 92 00:04:41,600 --> 00:04:43,800 Speaker 1: what is driving the thirty five percent year of year 93 00:04:43,839 --> 00:04:46,560 Speaker 1: growth in the full structload drive in business? I mean, 94 00:04:46,600 --> 00:04:49,919 Speaker 1: obviously you're winning share from from somebody, so you know, 95 00:04:50,000 --> 00:04:51,360 Speaker 1: and also if you can just tell us what's the 96 00:04:51,400 --> 00:04:52,480 Speaker 1: secret sauce. 97 00:04:53,240 --> 00:04:55,599 Speaker 2: You know, we could spend the next hour talking about 98 00:04:55,600 --> 00:04:57,200 Speaker 2: a lot of the different things that we're doing that 99 00:04:57,240 --> 00:04:59,680 Speaker 2: we think are making a difference. But you know, I'll 100 00:04:59,680 --> 00:05:03,159 Speaker 2: start like an industry level and basically say some of 101 00:05:03,200 --> 00:05:07,640 Speaker 2: the themes that we're seeing our provider consolidation and so 102 00:05:07,760 --> 00:05:09,839 Speaker 2: a lot of shippers when the market is really tight, 103 00:05:10,000 --> 00:05:12,320 Speaker 2: like during COVID, they add a bunch of providers to 104 00:05:12,360 --> 00:05:15,320 Speaker 2: their network. And then as markets you know, settle in 105 00:05:15,360 --> 00:05:17,400 Speaker 2: and the market gets a little easier for the shippers, 106 00:05:17,640 --> 00:05:20,599 Speaker 2: they start to consolidate their providers, and so you know, 107 00:05:20,880 --> 00:05:24,080 Speaker 2: really focusing on not being consolidated, so being a provider 108 00:05:24,120 --> 00:05:26,640 Speaker 2: that offers really great service that they can rely on. 109 00:05:27,000 --> 00:05:28,240 Speaker 2: They want to be able to work with you know, 110 00:05:28,279 --> 00:05:30,680 Speaker 2: five or ten providers instead of fifty providers, and so 111 00:05:31,040 --> 00:05:34,000 Speaker 2: when that consolidation happens, you know, that's that's an opportunity 112 00:05:34,040 --> 00:05:37,000 Speaker 2: to pick up market share. Another trend we're seeing in 113 00:05:37,040 --> 00:05:39,560 Speaker 2: the industry pretty you know, regularly is what I would 114 00:05:39,600 --> 00:05:44,400 Speaker 2: consider centralization of decision makers. And so the transportation markets 115 00:05:44,400 --> 00:05:48,480 Speaker 2: heavily fragmented both from an assets and from the shippers 116 00:05:48,480 --> 00:05:51,839 Speaker 2: and then from a decision maker decision maker standpoint, and 117 00:05:51,880 --> 00:05:53,719 Speaker 2: we're starting to see a lot of companies start to 118 00:05:53,760 --> 00:05:57,680 Speaker 2: centralize procurement, and you know, when that happens, it typically 119 00:05:58,160 --> 00:06:00,919 Speaker 2: you know, forces consolidation in their provideider base. And so 120 00:06:01,000 --> 00:06:03,159 Speaker 2: that's a big driver to it. And really it's just 121 00:06:03,200 --> 00:06:05,760 Speaker 2: the maturation of our salesforce and the maturation of our 122 00:06:05,760 --> 00:06:08,320 Speaker 2: customer relationships. And so when you look at a Arrive, 123 00:06:08,400 --> 00:06:10,240 Speaker 2: we've only been in a business for eleven years, and 124 00:06:10,279 --> 00:06:12,360 Speaker 2: if you look at everyone that's bigger than us, they've 125 00:06:12,360 --> 00:06:15,120 Speaker 2: been in business twenty thirty forty to fifty plus years, right, 126 00:06:15,200 --> 00:06:17,640 Speaker 2: and so they've already got a very mature workforce and 127 00:06:17,680 --> 00:06:20,720 Speaker 2: they've got very mature relationships, and so they're playing more 128 00:06:20,760 --> 00:06:23,440 Speaker 2: defense versus offense. And so you know, we can talk 129 00:06:23,480 --> 00:06:26,359 Speaker 2: about the maturation of our workforce. Let's start there. The 130 00:06:26,480 --> 00:06:28,960 Speaker 2: average rep at arrive is like two and a half 131 00:06:29,000 --> 00:06:31,840 Speaker 2: to three years of tenure. And so we've built our 132 00:06:31,960 --> 00:06:34,560 Speaker 2: entire business on like this cohort model where we know 133 00:06:34,640 --> 00:06:37,680 Speaker 2: exactly what type of productivity we get based as people 134 00:06:37,760 --> 00:06:40,520 Speaker 2: mature through the cohort curve. Right, we know there's going 135 00:06:40,560 --> 00:06:42,640 Speaker 2: to be attrition, but we know that at month twelve 136 00:06:42,640 --> 00:06:44,200 Speaker 2: they're going to bring an x amount of loads per 137 00:06:44,240 --> 00:06:46,320 Speaker 2: day by month twenty four, thirty six, and forty eight, 138 00:06:46,600 --> 00:06:49,560 Speaker 2: And so we've been accurately able to accurately forecast where 139 00:06:49,560 --> 00:06:51,599 Speaker 2: our loads are going over a very long duration of 140 00:06:51,640 --> 00:06:54,719 Speaker 2: time because of how accurate our cohort model is. And 141 00:06:54,760 --> 00:06:57,040 Speaker 2: so really what you're seeing is just the maturation of 142 00:06:57,080 --> 00:06:59,000 Speaker 2: all these cohorts, of all these people that we hired 143 00:06:59,000 --> 00:07:01,360 Speaker 2: in twenty eighteen, twenty nine, twenty twenty twenty one, twenty two, 144 00:07:01,680 --> 00:07:03,960 Speaker 2: they're all continuing to mature and they'll continue to take 145 00:07:04,000 --> 00:07:06,360 Speaker 2: more and more market share as they become more mature 146 00:07:06,360 --> 00:07:08,560 Speaker 2: as a sales rep. That's one way that we've had 147 00:07:08,560 --> 00:07:10,360 Speaker 2: a lot of successes. A lot of those investments that 148 00:07:10,360 --> 00:07:12,000 Speaker 2: we've made over the last five years are really come 149 00:07:12,040 --> 00:07:14,080 Speaker 2: to fruition. And then the other one is just the 150 00:07:14,120 --> 00:07:16,880 Speaker 2: maturation of our accounts, right, and so we look at 151 00:07:16,920 --> 00:07:20,080 Speaker 2: like at SMB, mid market and enterprise customer and three 152 00:07:20,160 --> 00:07:22,720 Speaker 2: very different lights. And we know that first year, the 153 00:07:22,760 --> 00:07:25,040 Speaker 2: average enterprise customers going to give us like four loads 154 00:07:25,080 --> 00:07:27,720 Speaker 2: a day. By month, by year five that at that 155 00:07:27,840 --> 00:07:30,320 Speaker 2: same customers will give us sixteen loads a day. And 156 00:07:30,360 --> 00:07:32,760 Speaker 2: so you've got this massive amount of customers that we've 157 00:07:32,800 --> 00:07:35,160 Speaker 2: landed over the first eleven years of our company that 158 00:07:35,240 --> 00:07:38,640 Speaker 2: are just really maturing through that curve with their experience 159 00:07:38,680 --> 00:07:41,240 Speaker 2: have arrived. And so as long as we offer great prices, 160 00:07:41,280 --> 00:07:43,800 Speaker 2: we offer great service, we're going to continue to expand 161 00:07:43,800 --> 00:07:45,800 Speaker 2: our market share within all of these customers. And so 162 00:07:46,000 --> 00:07:48,360 Speaker 2: it's really the aggregation of just doing things the right way. 163 00:07:48,360 --> 00:07:51,480 Speaker 2: It's like hiring people really well, training people well, and 164 00:07:51,520 --> 00:07:53,640 Speaker 2: then servicing our customers really well. And so if you 165 00:07:53,680 --> 00:07:56,080 Speaker 2: do all those three things, you're able to continue to 166 00:07:56,080 --> 00:07:58,560 Speaker 2: take market share, you know, even in the most challenging markets. 167 00:07:58,600 --> 00:08:00,720 Speaker 2: And you know, obviously if the market it was more 168 00:08:00,720 --> 00:08:03,400 Speaker 2: in the broker favor, our growth would be even higher. Right, 169 00:08:03,480 --> 00:08:05,240 Speaker 2: Like when we think of like the managed goals that 170 00:08:05,280 --> 00:08:08,040 Speaker 2: we look at, you know, we know that the percent 171 00:08:08,080 --> 00:08:10,280 Speaker 2: achievement of that managed goal and a tough market, it's 172 00:08:10,280 --> 00:08:12,200 Speaker 2: can to be lower than it is in a good market. 173 00:08:12,400 --> 00:08:14,520 Speaker 2: And so like we've just gotten really really dialed in 174 00:08:14,720 --> 00:08:18,040 Speaker 2: understanding what our productivity curves look like. And so that's 175 00:08:18,080 --> 00:08:19,920 Speaker 2: really led to a lot of our success that arrived. 176 00:08:19,920 --> 00:08:22,160 Speaker 2: But at the end of the day, it's a people business. 177 00:08:22,400 --> 00:08:24,840 Speaker 2: Technology is a huge part of our success as well, 178 00:08:25,080 --> 00:08:27,360 Speaker 2: but it's really just hiring good people, training people well, 179 00:08:27,400 --> 00:08:29,600 Speaker 2: and servicing your customers. And there's a lot of opportunity 180 00:08:29,600 --> 00:08:31,200 Speaker 2: to grow. And so that's kind of the way we 181 00:08:31,240 --> 00:08:33,760 Speaker 2: look at the market. It's so big, it's so fragmented. 182 00:08:34,559 --> 00:08:37,080 Speaker 1: Yes, it's two follow ups on that, you know, you mentioned, 183 00:08:37,080 --> 00:08:39,360 Speaker 1: you know, when you hire somebody and you kind of 184 00:08:39,400 --> 00:08:42,200 Speaker 1: know their productivity, if they're going to they're gonna last, 185 00:08:42,360 --> 00:08:44,480 Speaker 1: you know, after the first twelve months. Because obviously there's 186 00:08:44,480 --> 00:08:46,680 Speaker 1: a lot of chre in this because it's a you know, 187 00:08:46,760 --> 00:08:50,560 Speaker 1: it's a challenging business. It's it's it's uh, it's it's 188 00:08:50,640 --> 00:08:53,280 Speaker 1: it's calling people and and and and asking for their business, 189 00:08:53,320 --> 00:08:55,920 Speaker 1: which obviously isn't easy. So are you are you hiring 190 00:08:56,000 --> 00:09:01,120 Speaker 1: people with limited brokerage experience beforehand or are you hiring 191 00:09:01,200 --> 00:09:04,400 Speaker 1: people with experience? So kind of what is your target 192 00:09:04,520 --> 00:09:07,720 Speaker 1: new employee? Uh, that's on the broker side. 193 00:09:07,800 --> 00:09:10,080 Speaker 2: So I would say when you look historically over the 194 00:09:10,120 --> 00:09:13,640 Speaker 2: first eleven years, ninety seven percent of our hires have 195 00:09:13,760 --> 00:09:17,000 Speaker 2: no experience whatsoever. And so, you know, when we were 196 00:09:17,080 --> 00:09:19,880 Speaker 2: growing quickly, we definitely went and hired some experienced people 197 00:09:19,880 --> 00:09:22,240 Speaker 2: to help us, you know, scale our business, to help 198 00:09:22,320 --> 00:09:26,280 Speaker 2: us you know, have more mid level management. But at 199 00:09:26,280 --> 00:09:28,920 Speaker 2: this point, you know, if you look today, I bet 200 00:09:29,000 --> 00:09:32,319 Speaker 2: if we hire seven hundred and fifty people, maybe ten 201 00:09:32,360 --> 00:09:35,400 Speaker 2: of them have experience, and so that that's going to 202 00:09:35,400 --> 00:09:38,200 Speaker 2: continue to trend in that direction. You know, we're very 203 00:09:38,240 --> 00:09:40,240 Speaker 2: confident in our ability to hire people that have no 204 00:09:40,320 --> 00:09:43,120 Speaker 2: sales experience, people coming out of college that want to 205 00:09:43,160 --> 00:09:46,280 Speaker 2: get a career in sales. You know, it's really easy 206 00:09:46,280 --> 00:09:48,120 Speaker 2: and like I'm not you know, throwing shade at other 207 00:09:48,160 --> 00:09:51,199 Speaker 2: people's business model, but going in overpaying someone that's got 208 00:09:51,200 --> 00:09:53,240 Speaker 2: five years of experience to move their book of business 209 00:09:53,240 --> 00:09:55,200 Speaker 2: over it's really easy. I mean, we could go do 210 00:09:55,280 --> 00:09:58,079 Speaker 2: that to all of our competitors, but that's not our strategy. 211 00:09:58,160 --> 00:10:00,760 Speaker 2: Our strategy is, you know, go hire your people, bring 212 00:10:00,840 --> 00:10:03,240 Speaker 2: them out of college, put them through the best in 213 00:10:03,280 --> 00:10:05,920 Speaker 2: class sales training, have them to think about the job 214 00:10:05,920 --> 00:10:07,800 Speaker 2: the way we wanted to think about it, and it's 215 00:10:07,880 --> 00:10:11,280 Speaker 2: very scalable and repeatable. The way that we do are hiring, 216 00:10:11,360 --> 00:10:14,000 Speaker 2: our training, and so you know, that is our strategy. 217 00:10:14,000 --> 00:10:15,800 Speaker 2: It's going to continue to be our strategy. You know 218 00:10:15,800 --> 00:10:16,959 Speaker 2: a lot of people are like, oh, you're gonna go 219 00:10:16,960 --> 00:10:18,559 Speaker 2: buy a bunch of companies. You know, obviously there's a 220 00:10:18,559 --> 00:10:20,200 Speaker 2: lot of companies looking to sell right now with how 221 00:10:20,280 --> 00:10:22,800 Speaker 2: challenging the market is, but you just pick up bad 222 00:10:22,800 --> 00:10:25,120 Speaker 2: habits and so we prefer to you know, hire people 223 00:10:25,120 --> 00:10:26,239 Speaker 2: and go to ourselves. 224 00:10:26,840 --> 00:10:29,160 Speaker 1: Yeah, and you know, you did mention that the market 225 00:10:29,200 --> 00:10:31,840 Speaker 1: is extremely fragmented, which which it is, but there are 226 00:10:31,840 --> 00:10:35,040 Speaker 1: some people talking about it becoming a little more or 227 00:10:35,120 --> 00:10:37,880 Speaker 1: less so because consolidating that market is obviously going to 228 00:10:37,880 --> 00:10:41,760 Speaker 1: be very, very very difficult to do. Do you see 229 00:10:42,200 --> 00:10:45,840 Speaker 1: more consolidation, whether that's through M and A activity or 230 00:10:45,920 --> 00:10:48,640 Speaker 1: just people being pushed out of the market because they 231 00:10:48,640 --> 00:10:51,320 Speaker 1: just can't compete because they don't have the capital to 232 00:10:51,400 --> 00:10:54,280 Speaker 1: invest in the technology that you probably really need to 233 00:10:54,320 --> 00:10:57,800 Speaker 1: be successful in this business today and tomorrow versus you know, 234 00:10:57,840 --> 00:10:58,560 Speaker 1: ten years ago. 235 00:10:59,320 --> 00:11:02,560 Speaker 2: So I'm I'm always a believer that consolidation is a 236 00:11:02,640 --> 00:11:06,400 Speaker 2: very logical outcome for our industry. With that said, there's 237 00:11:06,559 --> 00:11:09,640 Speaker 2: a large tale of shippers the SMB market. There's hundreds 238 00:11:09,640 --> 00:11:12,600 Speaker 2: and hundreds of thousands of shippers that small brokers can 239 00:11:12,640 --> 00:11:15,160 Speaker 2: continue to survive on for a very long time. And 240 00:11:15,200 --> 00:11:17,080 Speaker 2: so I think what you're going to see is consolidation 241 00:11:17,200 --> 00:11:20,559 Speaker 2: within the enterprise market, right the companies that are very 242 00:11:20,679 --> 00:11:24,120 Speaker 2: educated in buying transportation, that have high requirements for service, 243 00:11:24,400 --> 00:11:27,480 Speaker 2: have high requirements for integrations and capabilities. 244 00:11:27,920 --> 00:11:28,800 Speaker 3: I believe that the. 245 00:11:28,720 --> 00:11:30,599 Speaker 2: Top five or ten brokers are going to take the 246 00:11:30,679 --> 00:11:33,000 Speaker 2: vast majority of that market share over the coming five 247 00:11:33,040 --> 00:11:35,880 Speaker 2: to ten years. And so I do believe the big 248 00:11:35,920 --> 00:11:37,880 Speaker 2: will get bigger. You know, I kind of look at 249 00:11:37,880 --> 00:11:41,800 Speaker 2: European transportation companies as these huge conglomerates that are massive, 250 00:11:42,120 --> 00:11:44,480 Speaker 2: and in North America you don't have that many of them. 251 00:11:44,480 --> 00:11:45,920 Speaker 3: You've got JB. Hunt, You've got H. 252 00:11:46,000 --> 00:11:48,480 Speaker 2: Robinson, You've got a few others, But you don't have 253 00:11:48,559 --> 00:11:51,560 Speaker 2: those twenty billion dollar companies in North America. But I 254 00:11:51,600 --> 00:11:53,840 Speaker 2: do believe that the big will continue to get bigger. 255 00:11:53,880 --> 00:11:55,800 Speaker 2: I think at the end of the day, technology is 256 00:11:55,800 --> 00:11:59,720 Speaker 2: a deflationary product, and it's going to cause rate deflation 257 00:12:00,080 --> 00:12:03,400 Speaker 2: or time. We're not great inflation, but margin compression. But ultimately, 258 00:12:03,480 --> 00:12:05,880 Speaker 2: as long as you can get more efficient internally and 259 00:12:05,920 --> 00:12:08,280 Speaker 2: you can take cost out of your cost structure, it's 260 00:12:08,320 --> 00:12:10,720 Speaker 2: okay that margin compression happens, right, because you can still 261 00:12:10,760 --> 00:12:12,800 Speaker 2: put the same amount of profit to the bottom line 262 00:12:13,160 --> 00:12:15,160 Speaker 2: even if margins get compressed, if you get more and 263 00:12:15,200 --> 00:12:18,160 Speaker 2: more efficient from a technology perspective and from a rep 264 00:12:18,200 --> 00:12:20,360 Speaker 2: perspective as well. And so you know, I'm a big 265 00:12:20,400 --> 00:12:23,359 Speaker 2: believer that you know, the investments that we make in technology, 266 00:12:23,360 --> 00:12:25,360 Speaker 2: we're taking cost out of our business. We're going to 267 00:12:25,400 --> 00:12:28,160 Speaker 2: pass those back onto shippers over time, right, And so 268 00:12:28,360 --> 00:12:31,680 Speaker 2: I do believe that that in among itself, will cause 269 00:12:31,760 --> 00:12:35,600 Speaker 2: consolidation providers because the people that aren't investing in technology, 270 00:12:35,679 --> 00:12:37,760 Speaker 2: that don't have the efficiency that we're having, and we're 271 00:12:37,760 --> 00:12:39,640 Speaker 2: seeing they're not going to be able to compete on 272 00:12:39,679 --> 00:12:41,960 Speaker 2: a rate perspective, because what they need to charge to 273 00:12:42,000 --> 00:12:44,240 Speaker 2: make their margin is going to be significantly more than 274 00:12:44,240 --> 00:12:45,760 Speaker 2: what I need to charge to make the same margin 275 00:12:45,840 --> 00:12:46,640 Speaker 2: to the bottom line. 276 00:12:48,120 --> 00:12:51,720 Speaker 1: So would you be surprised or not surprised if you 277 00:12:51,800 --> 00:12:55,920 Speaker 1: sew more deals like the RXO Coyote transaction. I guess 278 00:12:55,920 --> 00:12:59,200 Speaker 1: that's a year ago that when that happened. Were you 279 00:12:59,320 --> 00:13:02,439 Speaker 1: expecting the big getting bigger just by taking share? 280 00:13:02,600 --> 00:13:05,319 Speaker 2: I think it's a combination of both, right. I think 281 00:13:05,320 --> 00:13:08,040 Speaker 2: there is only a few companies in the industry that 282 00:13:08,080 --> 00:13:11,080 Speaker 2: has proven to be able to grow organically. You know, 283 00:13:11,160 --> 00:13:13,160 Speaker 2: TQL is the top of that list. They've been around 284 00:13:13,160 --> 00:13:16,040 Speaker 2: for thirty years. Ken and Carey have done a really 285 00:13:16,040 --> 00:13:19,400 Speaker 2: good job over there of building like an unbelievable business organically. 286 00:13:20,200 --> 00:13:21,599 Speaker 2: And then I think there's a lot of companies in 287 00:13:21,640 --> 00:13:23,360 Speaker 2: the top ten that haven't proven to be able to 288 00:13:23,400 --> 00:13:26,840 Speaker 2: grow organically. And even with these industry trends, you know, 289 00:13:27,559 --> 00:13:32,240 Speaker 2: organic growth is tough, especially private equity owned or publicly traded, 290 00:13:32,440 --> 00:13:35,480 Speaker 2: because it requires investments, right, and so our investments aren't 291 00:13:35,520 --> 00:13:38,200 Speaker 2: in CAPEX. Our investments are into people, and those people 292 00:13:38,240 --> 00:13:40,000 Speaker 2: have a drain on your P and L, right, and 293 00:13:40,080 --> 00:13:42,640 Speaker 2: so it's really hard for the public companies to grow 294 00:13:42,760 --> 00:13:44,679 Speaker 2: organically because you've got to be able to invest through 295 00:13:44,720 --> 00:13:46,839 Speaker 2: the entirety of a cycle. And as you know, this 296 00:13:46,920 --> 00:13:49,480 Speaker 2: cycle is very volatile, right, and so a lot of 297 00:13:49,480 --> 00:13:51,520 Speaker 2: people like to make investments when the cycle is good 298 00:13:51,520 --> 00:13:53,360 Speaker 2: and they stop making investments when it's bad. Well, you 299 00:13:53,440 --> 00:13:56,000 Speaker 2: can't grow like that, and so I think that the 300 00:13:56,000 --> 00:13:58,000 Speaker 2: companies that have to hit those earnings or they have 301 00:13:58,040 --> 00:14:00,800 Speaker 2: to hit certain covenments because they're probably equity owned with 302 00:14:00,840 --> 00:14:03,280 Speaker 2: you know, a lot of leverage, it's really hard to 303 00:14:03,320 --> 00:14:05,640 Speaker 2: do that organically. And so they're going to grow inorganically. 304 00:14:05,679 --> 00:14:07,920 Speaker 2: And there's a lot of good platforms out there that 305 00:14:08,000 --> 00:14:10,280 Speaker 2: we see popping up that are fifty million, two hundred 306 00:14:10,280 --> 00:14:13,080 Speaker 2: and fifty million of revenue that they're seeing their writing 307 00:14:13,120 --> 00:14:14,480 Speaker 2: on the walls and they're looking to get out. And 308 00:14:14,520 --> 00:14:15,600 Speaker 2: I think you're going to see a lot of that 309 00:14:15,640 --> 00:14:18,920 Speaker 2: consolidation happening over the next five years, and that's going 310 00:14:19,000 --> 00:14:20,040 Speaker 2: to be in the form of M and A for 311 00:14:20,080 --> 00:14:20,760 Speaker 2: the bigger people. 312 00:14:21,000 --> 00:14:23,640 Speaker 1: And so, you know, you mentioned, you know, the difficulty 313 00:14:23,680 --> 00:14:28,760 Speaker 1: of private equity and publicly traded companies might have versus 314 00:14:28,880 --> 00:14:31,360 Speaker 1: somebody that doesn't have those sort of constraints. Can you 315 00:14:31,400 --> 00:14:35,760 Speaker 1: talk about you know, arrives ownership. Who owns a arrive 316 00:14:36,200 --> 00:14:38,880 Speaker 1: So it's a conglomerate. There's a bunch of investors we've got. 317 00:14:39,360 --> 00:14:43,360 Speaker 1: We've got a private equity group called ATL Partners. They're 318 00:14:43,360 --> 00:14:46,080 Speaker 1: a minority owner in the company, which we've we've said 319 00:14:46,120 --> 00:14:49,400 Speaker 1: that publicly before. They're co investors are BCI which is 320 00:14:49,400 --> 00:14:52,080 Speaker 1: a Canadian pension fund, Bawl Post which is a hedge fund, 321 00:14:52,320 --> 00:14:55,640 Speaker 1: and TAMASK which is a Singapore sovereign wealth fund. And 322 00:14:55,680 --> 00:14:59,680 Speaker 1: so that aggregate of investors as a minority holder. We've 323 00:14:59,720 --> 00:15:01,480 Speaker 1: got to great growth equity firm that we brought on 324 00:15:01,560 --> 00:15:03,400 Speaker 1: back in twenty seventeen that's been with us for a 325 00:15:03,400 --> 00:15:05,040 Speaker 1: long time called lead Edge Capital. 326 00:15:05,080 --> 00:15:05,960 Speaker 3: They're spectacular. 327 00:15:06,680 --> 00:15:09,360 Speaker 2: And then we've got two seed investors that are the 328 00:15:09,400 --> 00:15:13,960 Speaker 2: founders and still the CEO of Nutrable, which is see. 329 00:15:13,720 --> 00:15:15,080 Speaker 3: For the energy dree company. 330 00:15:15,720 --> 00:15:17,000 Speaker 2: And so we've got a lot of you know, we're 331 00:15:17,120 --> 00:15:19,000 Speaker 2: it's like a democracy on our board, which is a 332 00:15:19,040 --> 00:15:21,360 Speaker 2: good thing, right and you know there's not one person 333 00:15:21,400 --> 00:15:23,560 Speaker 2: that controls, you know, all the decision making, which has 334 00:15:23,600 --> 00:15:25,880 Speaker 2: allowed us to really have good, healthy debates at the 335 00:15:25,920 --> 00:15:28,480 Speaker 2: board level. It allows us to kind of hear everyone's 336 00:15:28,480 --> 00:15:30,880 Speaker 2: side of the argument and give a lot of different perspectives. 337 00:15:31,640 --> 00:15:33,440 Speaker 2: And so, you know, we feel really good about where 338 00:15:33,480 --> 00:15:37,400 Speaker 2: our ownership is today. You know, doesn't mean things change 339 00:15:37,400 --> 00:15:39,200 Speaker 2: every you know, as you know with investors and with 340 00:15:39,240 --> 00:15:41,920 Speaker 2: private equity and growth equity and everyone else, they have 341 00:15:41,960 --> 00:15:45,400 Speaker 2: different you know, timing dynamics with their funds, and so 342 00:15:45,640 --> 00:15:47,920 Speaker 2: inevitably there will have to be something that gets done 343 00:15:47,960 --> 00:15:50,240 Speaker 2: to you know, align the timelines going forward. 344 00:15:50,800 --> 00:15:52,800 Speaker 3: But we feel really confident where we are today. 345 00:15:53,080 --> 00:15:56,520 Speaker 1: All right, great, you know we were talking a little 346 00:15:56,520 --> 00:16:00,359 Speaker 1: bit about technology. Uh so it arrived? Is your technology 347 00:16:00,480 --> 00:16:01,800 Speaker 1: proprietary kind. 348 00:16:01,680 --> 00:16:02,800 Speaker 3: Of what is it? 349 00:16:02,840 --> 00:16:04,840 Speaker 1: What does it allow you to do that you know 350 00:16:05,680 --> 00:16:07,520 Speaker 1: is helping you win so much share? 351 00:16:08,000 --> 00:16:09,720 Speaker 2: Yeah, I mean at the end of the day, when 352 00:16:09,720 --> 00:16:13,600 Speaker 2: we look at technology, yes, arrives, technology is proprietary. We 353 00:16:13,640 --> 00:16:15,960 Speaker 2: always look at the buy versus built. There's definitely things 354 00:16:15,960 --> 00:16:18,240 Speaker 2: that we buy slash partner with people that are building 355 00:16:18,280 --> 00:16:20,960 Speaker 2: something they specialize in. Right when you look at you know, 356 00:16:21,000 --> 00:16:23,320 Speaker 2: the AI trends and you look at voice AI and 357 00:16:23,600 --> 00:16:25,520 Speaker 2: you look at all the different things that are coming out. 358 00:16:26,480 --> 00:16:28,560 Speaker 2: You know, we definitely partner on some of it and 359 00:16:28,600 --> 00:16:31,360 Speaker 2: then we build some of it right, But historically, you know, 360 00:16:31,360 --> 00:16:33,720 Speaker 2: there's three main verticals that we invest in. Number one 361 00:16:33,800 --> 00:16:36,920 Speaker 2: is connectivity to our customer. Too is connectivity to our carrier, 362 00:16:37,320 --> 00:16:40,920 Speaker 2: and three is just internal rep efficiency. And so I 363 00:16:40,920 --> 00:16:43,400 Speaker 2: would say eighty to ninety percent of our technology is 364 00:16:43,400 --> 00:16:47,600 Speaker 2: actually focusing on internal efficiency and automation and decision support 365 00:16:47,920 --> 00:16:50,080 Speaker 2: because the connectivity to the customers and the carrier is 366 00:16:50,120 --> 00:16:53,440 Speaker 2: actually pretty quite easy. A lot of apisz dis you know, 367 00:16:53,520 --> 00:16:56,120 Speaker 2: customers want you to put the information in their systems. 368 00:16:56,120 --> 00:16:58,160 Speaker 2: They don't want to go to your system, especially within 369 00:16:58,200 --> 00:17:01,400 Speaker 2: the enterprise market. You know, we build unbelievable carrier facing 370 00:17:01,440 --> 00:17:04,080 Speaker 2: technology that we feel is best in class, but there's 371 00:17:04,119 --> 00:17:06,080 Speaker 2: only so much technology we need to build to you know, 372 00:17:06,119 --> 00:17:09,240 Speaker 2: integrate with our carriers. And so really now it's all 373 00:17:09,280 --> 00:17:12,040 Speaker 2: about like, how do we build a better system internally 374 00:17:12,080 --> 00:17:14,639 Speaker 2: to to where we can ramp up our employees faster. 375 00:17:15,000 --> 00:17:17,600 Speaker 2: We can prevent them from making bad decisions, we can 376 00:17:17,640 --> 00:17:20,760 Speaker 2: help them make better decisions. We can automate the manual 377 00:17:20,880 --> 00:17:23,040 Speaker 2: tasks that no one wants to do anymore, whether it's 378 00:17:23,080 --> 00:17:26,639 Speaker 2: tracking and whether it's load building, whether it's getting invoices, 379 00:17:26,680 --> 00:17:31,520 Speaker 2: settling invoices, answering questions, whether it's you know, scheduling all 380 00:17:31,560 --> 00:17:33,600 Speaker 2: sorts of different parts of the life cycle that are 381 00:17:33,680 --> 00:17:36,320 Speaker 2: very menial. And so really that's kind of the way 382 00:17:36,320 --> 00:17:39,639 Speaker 2: we focus our technology. And so, like, look everyone in 383 00:17:39,680 --> 00:17:42,000 Speaker 2: the top three or four or five truckload brokers, and 384 00:17:42,119 --> 00:17:43,840 Speaker 2: you made a comment earlier where you said, we're like 385 00:17:43,840 --> 00:17:46,199 Speaker 2: the eleventh biggest according to Transport Topics, and you know, 386 00:17:46,200 --> 00:17:48,119 Speaker 2: transport topics when they look at brokers, they look at 387 00:17:48,160 --> 00:17:50,480 Speaker 2: all brokerage. I kind of compare myself to like the 388 00:17:50,480 --> 00:17:53,560 Speaker 2: truckload market, and so because that's all we do. And 389 00:17:53,640 --> 00:17:56,840 Speaker 2: so we think we're the fourth or fifth largest truckload 390 00:17:56,840 --> 00:18:01,199 Speaker 2: broker in North America, and that's just truckload going in 391 00:18:01,280 --> 00:18:03,560 Speaker 2: terms of how much truckload wyting we move every single day. 392 00:18:03,800 --> 00:18:05,640 Speaker 2: And so when I look at the people we're competing 393 00:18:05,680 --> 00:18:07,520 Speaker 2: with in that market, you know, I think we all 394 00:18:07,560 --> 00:18:08,560 Speaker 2: have great technology. 395 00:18:08,600 --> 00:18:09,880 Speaker 3: I think we all have different. 396 00:18:09,560 --> 00:18:11,960 Speaker 2: Flavors of how we've built out what the user experience 397 00:18:12,000 --> 00:18:13,959 Speaker 2: looks like. But the end of the day, we're matching 398 00:18:14,000 --> 00:18:16,800 Speaker 2: loads and trucks, right, so we've got great algorithms that 399 00:18:16,880 --> 00:18:19,560 Speaker 2: have pricing science behind it, so we know what our 400 00:18:19,600 --> 00:18:21,520 Speaker 2: costs are going to be on carriers based on lead time, 401 00:18:21,520 --> 00:18:24,040 Speaker 2: based on how much volume. Because what's crazy people don't 402 00:18:24,040 --> 00:18:26,680 Speaker 2: even think about it. But if we have like seventeen 403 00:18:26,760 --> 00:18:29,000 Speaker 2: loads on Chicago going to the northeast on a day, 404 00:18:29,200 --> 00:18:31,639 Speaker 2: we're quoting all those loads very differently. We're quoting that 405 00:18:31,680 --> 00:18:34,120 Speaker 2: incremental eighteenth load differently than we quoted the first load. 406 00:18:34,280 --> 00:18:36,679 Speaker 2: If fifteen of the seventeen are already covered, we're going 407 00:18:36,720 --> 00:18:38,919 Speaker 2: to quote the eighteenth different then at thirteen of the 408 00:18:38,960 --> 00:18:40,800 Speaker 2: seventeen are covered. And so there's just so much that 409 00:18:40,840 --> 00:18:43,440 Speaker 2: goes into the algorithms that really look at the internal 410 00:18:43,520 --> 00:18:46,040 Speaker 2: dynamics of our marketplace. Our marketplace being the loads that 411 00:18:46,040 --> 00:18:48,160 Speaker 2: we already own, and so a lot of stuff we're 412 00:18:48,160 --> 00:18:51,280 Speaker 2: building errors around data, around pricing, around what is our 413 00:18:51,320 --> 00:18:53,320 Speaker 2: carrier costs going to be? When should we take an offer, 414 00:18:53,320 --> 00:18:55,520 Speaker 2: When should we not take an offer? How should we 415 00:18:55,680 --> 00:18:57,600 Speaker 2: you know, we negotiate on an offer. If we get 416 00:18:57,640 --> 00:18:59,600 Speaker 2: a carrier offer that comes in that's a thousand bucks, 417 00:19:00,000 --> 00:19:01,760 Speaker 2: we try to push the nine hundreds. We take nine 418 00:19:01,800 --> 00:19:04,359 Speaker 2: to seventy five, And so that's really the technology that 419 00:19:04,359 --> 00:19:06,639 Speaker 2: we're building is how do we become more efficient and 420 00:19:06,640 --> 00:19:09,880 Speaker 2: make smarter, faster decisions so that our employees are more productive. 421 00:19:09,880 --> 00:19:11,760 Speaker 2: Because at the end of the day, the easiest way 422 00:19:11,760 --> 00:19:13,359 Speaker 2: to look at productivity is the number of loads per 423 00:19:13,400 --> 00:19:15,000 Speaker 2: day per head, right And so at the end of 424 00:19:15,040 --> 00:19:17,000 Speaker 2: the day, if you're able to get more out of 425 00:19:17,040 --> 00:19:19,040 Speaker 2: your people, and you can get loads per day per 426 00:19:19,040 --> 00:19:21,000 Speaker 2: head as a function of because of your average rep 427 00:19:21,040 --> 00:19:23,000 Speaker 2: ten years higher, but you can also get loads per 428 00:19:23,080 --> 00:19:25,119 Speaker 2: day per head because your technology is better. And so 429 00:19:25,640 --> 00:19:28,280 Speaker 2: really that's the way we look at technology investments. You know, 430 00:19:28,359 --> 00:19:31,000 Speaker 2: it's a never ending roadmap. There's so much opportunity for 431 00:19:31,080 --> 00:19:33,760 Speaker 2: us to do more and build better technology. But we 432 00:19:33,760 --> 00:19:36,760 Speaker 2: feel very confident. I mean, we've taken our cost per load, 433 00:19:36,800 --> 00:19:40,480 Speaker 2: like our cost to serve down significantly in the last 434 00:19:40,480 --> 00:19:42,800 Speaker 2: thirty six months. I'd say we've probably lowered our cost 435 00:19:42,840 --> 00:19:45,040 Speaker 2: per load by over forty percent in the last thirty 436 00:19:45,080 --> 00:19:47,400 Speaker 2: six months right now, and so we're going to continue 437 00:19:47,400 --> 00:19:50,359 Speaker 2: to hammer on that every single day. And so we 438 00:19:50,680 --> 00:19:52,560 Speaker 2: think that's the only way you're going to survive over 439 00:19:52,600 --> 00:19:55,119 Speaker 2: the next five to ten years is building technology that 440 00:19:55,280 --> 00:19:57,320 Speaker 2: hammers down your cost per loads, that you can serve 441 00:19:57,359 --> 00:19:59,920 Speaker 2: your customers better and so that's interesting. 442 00:20:00,080 --> 00:20:03,560 Speaker 1: So you're taking out the cost of load considerably. You know, 443 00:20:03,560 --> 00:20:06,800 Speaker 1: have a couple questions related to that. A how like 444 00:20:06,840 --> 00:20:10,040 Speaker 1: what are the what have been the biggest wins in that? 445 00:20:10,560 --> 00:20:16,679 Speaker 1: And then also are you like, you know, taking that 446 00:20:16,800 --> 00:20:19,200 Speaker 1: savings and passing it along to your customers And that's 447 00:20:19,280 --> 00:20:22,240 Speaker 1: kind of how you're winning the share, you know, because 448 00:20:22,280 --> 00:20:25,080 Speaker 1: maybe you're you're able to offer something at a less 449 00:20:25,119 --> 00:20:27,199 Speaker 1: price but still make the same amount of money because 450 00:20:27,240 --> 00:20:28,600 Speaker 1: you know, your cost structure is different. 451 00:20:28,640 --> 00:20:30,480 Speaker 2: Yeah, I mean, it's it's a delicate balance, right, Like 452 00:20:30,560 --> 00:20:33,040 Speaker 2: you know, if we take hypothetically five dollars out our constructure, 453 00:20:33,040 --> 00:20:34,960 Speaker 2: are we passing that back on to the customers immediately? 454 00:20:35,000 --> 00:20:35,520 Speaker 3: Probably not. 455 00:20:35,640 --> 00:20:37,960 Speaker 2: Right at the end of the day, arrive as a 456 00:20:37,960 --> 00:20:43,080 Speaker 2: fast growing company that is at around industry average margins, 457 00:20:43,400 --> 00:20:45,679 Speaker 2: but we have to continue to expand our earnings. Right, 458 00:20:45,720 --> 00:20:48,199 Speaker 2: We're very fortunate that we're profitable. We're never not going 459 00:20:48,240 --> 00:20:51,280 Speaker 2: to be profitable going forward, but you know, we want 460 00:20:51,480 --> 00:20:53,280 Speaker 2: we want to get to where C. H. Robinson is, 461 00:20:53,280 --> 00:20:55,560 Speaker 2: where you know, at the bottom of the cycle there's 462 00:20:55,600 --> 00:20:57,040 Speaker 2: still you know, four percent evada. 463 00:20:57,760 --> 00:20:59,040 Speaker 3: You know, we're not quite there yet. Now. 464 00:20:59,160 --> 00:21:01,480 Speaker 2: Function of that is, you know, we're reinvesting a lot 465 00:21:01,520 --> 00:21:04,280 Speaker 2: back into the growth of the company, but obviously we 466 00:21:04,400 --> 00:21:07,080 Speaker 2: just have to continue to improve and so you know, 467 00:21:07,080 --> 00:21:09,240 Speaker 2: we're not turning around and you know, all of a 468 00:21:09,280 --> 00:21:11,960 Speaker 2: sudden lowering all of our rates overnight to our customers. 469 00:21:11,960 --> 00:21:13,600 Speaker 2: But I do believe that over the next five to 470 00:21:13,640 --> 00:21:15,840 Speaker 2: ten years that as you you know, for every ten 471 00:21:15,880 --> 00:21:18,200 Speaker 2: dollars you cut out of your cost structure, you're probably 472 00:21:18,280 --> 00:21:20,679 Speaker 2: giving the vast majority of that back to the customers 473 00:21:20,680 --> 00:21:23,560 Speaker 2: over time. It's it's not that fluid of a market 474 00:21:23,600 --> 00:21:27,000 Speaker 2: where it happens instantaneously. But yeah, I do believe, Like 475 00:21:27,080 --> 00:21:29,200 Speaker 2: let's just make up an example and use hundred percent. 476 00:21:29,280 --> 00:21:31,600 Speaker 2: Let's just say the industry average cost forload is one 477 00:21:31,680 --> 00:21:34,679 Speaker 2: hundred percent today. If that one hundred percent becomes seventy percent, 478 00:21:35,119 --> 00:21:36,919 Speaker 2: I do believe a lot of that savings goes back 479 00:21:36,920 --> 00:21:40,040 Speaker 2: to the shippers over time. And so, you know, is 480 00:21:40,080 --> 00:21:42,280 Speaker 2: it happening overnight. No, But you know that's why we 481 00:21:42,320 --> 00:21:44,760 Speaker 2: continue to get more and more profitable. We're getting better 482 00:21:44,840 --> 00:21:47,760 Speaker 2: operating leverage as a company, and that's part of maturing 483 00:21:47,800 --> 00:21:50,120 Speaker 2: as an organization, right, Like you know, you can look 484 00:21:50,119 --> 00:21:52,760 Speaker 2: at Uber freights, you know, public earnings, and you can 485 00:21:52,800 --> 00:21:55,200 Speaker 2: see that they haven't really cracked the code of profitability. 486 00:21:55,560 --> 00:21:57,639 Speaker 2: You know, they obviously have to work on their cost structure, 487 00:21:57,680 --> 00:21:59,240 Speaker 2: they have to work on their margins, and like the 488 00:21:59,680 --> 00:22:01,560 Speaker 2: common of those two things are the only way you 489 00:22:01,560 --> 00:22:02,679 Speaker 2: can survive long term. 490 00:22:02,760 --> 00:22:04,160 Speaker 3: And we're doing the exact same thing. 491 00:22:04,760 --> 00:22:09,000 Speaker 1: So what was the biggest I guess things that you've 492 00:22:09,040 --> 00:22:12,880 Speaker 1: taken out of on the cost side through technology. 493 00:22:13,080 --> 00:22:14,960 Speaker 2: So when you think about taking out, I don't look 494 00:22:15,000 --> 00:22:17,880 Speaker 2: at as taking out I look at as getting more productivity, right, 495 00:22:18,160 --> 00:22:19,560 Speaker 2: And so let's just make up a number. 496 00:22:19,640 --> 00:22:19,840 Speaker 3: Right. 497 00:22:20,119 --> 00:22:23,160 Speaker 2: Let's say when you're doing a million loads, you're investing 498 00:22:23,200 --> 00:22:26,480 Speaker 2: I'm just making this up hypothetically, fifty million dollars in technology. 499 00:22:26,520 --> 00:22:29,879 Speaker 2: So you're spending fifty dollars per load on technology. But 500 00:22:29,960 --> 00:22:32,560 Speaker 2: if you're doing three million loads and you're still investing, 501 00:22:32,920 --> 00:22:35,840 Speaker 2: you know, sixty million, now you're only spending twenty dollars 502 00:22:35,880 --> 00:22:38,119 Speaker 2: per load, right, and so you just picked up thirty 503 00:22:38,160 --> 00:22:41,880 Speaker 2: dollars of operating leverage over time because you're doing more 504 00:22:41,920 --> 00:22:44,640 Speaker 2: as an organization. And so a big part of cost 505 00:22:44,680 --> 00:22:48,239 Speaker 2: structure improvements is really around like load growth, right, if 506 00:22:48,240 --> 00:22:50,239 Speaker 2: you're able to grow your loads and you're not, you know, 507 00:22:50,320 --> 00:22:52,960 Speaker 2: increasing your operating costs at the same rate, you're picking 508 00:22:53,040 --> 00:22:55,440 Speaker 2: up a lot of operating leverage at the same time. 509 00:22:55,480 --> 00:22:58,040 Speaker 2: It's rep productivity, right. So when we look at how 510 00:22:58,040 --> 00:23:00,359 Speaker 2: many loads per day is the average rep doing that 511 00:23:00,480 --> 00:23:02,840 Speaker 2: is a big driver cost per load coming down. So 512 00:23:02,880 --> 00:23:05,160 Speaker 2: you're not like firing people to take cost out, You're 513 00:23:05,200 --> 00:23:07,439 Speaker 2: just getting more productivity out of them. And so you 514 00:23:07,480 --> 00:23:09,960 Speaker 2: have more loads and less cost because the cost of 515 00:23:09,960 --> 00:23:12,119 Speaker 2: the offex isn't going up at the same rate. And 516 00:23:12,200 --> 00:23:14,840 Speaker 2: so when you think of technology where it's really driving 517 00:23:14,920 --> 00:23:18,359 Speaker 2: cost per load down, it's increasing productivity of the people 518 00:23:18,400 --> 00:23:21,560 Speaker 2: we have. And so we're continuing to add bodies constantly, 519 00:23:21,800 --> 00:23:24,439 Speaker 2: but we're adding bodies at a significantly slower rate than 520 00:23:24,480 --> 00:23:27,040 Speaker 2: we are adding volume. And so that is what technology 521 00:23:27,080 --> 00:23:27,679 Speaker 2: is helping us do. 522 00:23:28,880 --> 00:23:30,920 Speaker 1: And you know you did mention the number of loads 523 00:23:30,920 --> 00:23:32,919 Speaker 1: per day per head. Do you have any stats on 524 00:23:32,960 --> 00:23:35,600 Speaker 1: there or where you are and kind of where you 525 00:23:35,600 --> 00:23:36,080 Speaker 1: hope to be? 526 00:23:36,640 --> 00:23:39,840 Speaker 2: Yeah, So I will answer the question in ten different 527 00:23:39,920 --> 00:23:42,960 Speaker 2: ways because it's just impossible not to. You know, we 528 00:23:43,040 --> 00:23:44,800 Speaker 2: kind of look at that in a lot of different ways. 529 00:23:44,800 --> 00:23:46,920 Speaker 2: Do we look at loads per day per rev Gen employee. 530 00:23:46,920 --> 00:23:48,800 Speaker 2: Do we look at loads per day per total employee. 531 00:23:48,800 --> 00:23:50,840 Speaker 2: Do we look at loads per day per total employee 532 00:23:50,920 --> 00:23:53,480 Speaker 2: excluding everyone that's in training, because if we hire six 533 00:23:53,560 --> 00:23:55,040 Speaker 2: hundred people in the summer, it's going to move that 534 00:23:55,160 --> 00:23:58,280 Speaker 2: number down, right, And so it's a very volatile stat 535 00:23:58,359 --> 00:23:59,600 Speaker 2: depending on how you look at it. 536 00:24:00,119 --> 00:24:02,960 Speaker 3: So if you look historically, I would say the truckload. 537 00:24:03,000 --> 00:24:04,720 Speaker 2: Now this is the problem is I'm in truckload, so 538 00:24:04,960 --> 00:24:08,320 Speaker 2: I speak truckload lingo. Historically you would say three loads 539 00:24:08,320 --> 00:24:09,879 Speaker 2: per day per head is kind of like where you 540 00:24:09,960 --> 00:24:12,440 Speaker 2: needed to be, right, So if we have two thousand people, 541 00:24:12,440 --> 00:24:14,640 Speaker 2: you better be at six thousand loads a day. Well, 542 00:24:14,640 --> 00:24:16,800 Speaker 2: we're north of that, and so you know we are. 543 00:24:17,320 --> 00:24:20,160 Speaker 2: We believe that in that stat that stat we'll get 544 00:24:20,160 --> 00:24:21,760 Speaker 2: to five loads per day per head, it will go 545 00:24:21,800 --> 00:24:24,160 Speaker 2: to six loads per day per head. And now once 546 00:24:24,160 --> 00:24:27,240 Speaker 2: again that's including all employees. That's talking track and trace employees, 547 00:24:27,280 --> 00:24:30,480 Speaker 2: technology employees, that's every single person in the organization. But 548 00:24:30,520 --> 00:24:33,360 Speaker 2: if you look at just Rebgen, you know our Rebgen 549 00:24:33,400 --> 00:24:35,480 Speaker 2: productivity is going to be way north of ten loads 550 00:24:35,480 --> 00:24:37,119 Speaker 2: per day per head because you have all the support 551 00:24:37,119 --> 00:24:39,879 Speaker 2: staff that goes in behind that, and so you know, 552 00:24:40,000 --> 00:24:42,320 Speaker 2: that's kind of the way. It's a really tricky question. 553 00:24:42,320 --> 00:24:44,800 Speaker 2: And when we look at our annual operating plan, we 554 00:24:44,880 --> 00:24:48,560 Speaker 2: literally have those ratios literally fifteen to twenty different ways 555 00:24:48,720 --> 00:24:50,960 Speaker 2: and making sure that we're getting operating leverage on every 556 00:24:50,960 --> 00:24:53,280 Speaker 2: single department within the company. Right, Are we getting operating 557 00:24:53,359 --> 00:24:56,159 Speaker 2: leverage on technology, are getting operating leverage on ARP? Are 558 00:24:56,200 --> 00:24:59,280 Speaker 2: we getting on legal and compliance? And so everything we're 559 00:24:59,280 --> 00:25:00,920 Speaker 2: doing is trying to get operating leverage on all of 560 00:25:00,960 --> 00:25:02,080 Speaker 2: our different departments. 561 00:25:02,680 --> 00:25:04,920 Speaker 1: So you mentioned three loads per day, maybe getting to 562 00:25:05,359 --> 00:25:10,440 Speaker 1: six loads, that was industry average storage. That's industry average, 563 00:25:10,600 --> 00:25:14,520 Speaker 1: got you? So, I guess more specifically unarrived, do you 564 00:25:14,560 --> 00:25:17,640 Speaker 1: guys have any any goals that you want to share 565 00:25:17,680 --> 00:25:20,760 Speaker 1: in terms of, you know, how much you want to improve? 566 00:25:20,880 --> 00:25:23,479 Speaker 1: You don't have to give specific numbers per head, but like, 567 00:25:23,560 --> 00:25:26,520 Speaker 1: you know, do you want to should that number? Should 568 00:25:26,760 --> 00:25:28,840 Speaker 1: should that stat for you guys double in the next 569 00:25:28,880 --> 00:25:32,400 Speaker 1: ten years, next five years, next three years, tomorrow north. 570 00:25:32,200 --> 00:25:35,000 Speaker 2: Of three and a little bit under four today, I 571 00:25:35,000 --> 00:25:36,960 Speaker 2: would say in the next like three to four years, 572 00:25:36,960 --> 00:25:39,280 Speaker 2: you want to be north of five to the mid fives. 573 00:25:40,040 --> 00:25:41,639 Speaker 2: You know, kind of the way we look at is 574 00:25:41,680 --> 00:25:45,720 Speaker 2: by twenty thirty twenty thirty one, we're very confident we 575 00:25:45,720 --> 00:25:48,520 Speaker 2: could be moving north north of fifteen thousand loads a day, 576 00:25:49,440 --> 00:25:51,080 Speaker 2: and so we want to continue to make sure we're 577 00:25:51,080 --> 00:25:53,639 Speaker 2: making the right investments. And you know, there's obviously a 578 00:25:53,680 --> 00:25:57,919 Speaker 2: difference between optimizing productivity and optimizing growth and profitability. Right, 579 00:25:57,920 --> 00:25:59,800 Speaker 2: they're kind of like at an intersection of each other. 580 00:26:00,119 --> 00:26:02,439 Speaker 2: If you want to optimize productivity metrics and you want 581 00:26:02,480 --> 00:26:06,640 Speaker 2: to optimize profitability, then you're going to minimize long term growth, right, 582 00:26:06,720 --> 00:26:09,320 Speaker 2: And so there's always a delicate balance of when we're 583 00:26:09,359 --> 00:26:12,399 Speaker 2: looking to optimize these these different metrics and what the 584 00:26:12,520 --> 00:26:14,800 Speaker 2: right timing of that is is So if we want 585 00:26:14,840 --> 00:26:17,520 Speaker 2: to continue to grow at fifteen or twenty percent of them, 586 00:26:17,760 --> 00:26:19,679 Speaker 2: you know every single year when we think the market's 587 00:26:19,720 --> 00:26:22,119 Speaker 2: growing three or four percent, we're never going to really 588 00:26:22,160 --> 00:26:25,119 Speaker 2: optimize that ratio until we're willing to pull back on 589 00:26:25,160 --> 00:26:28,520 Speaker 2: our growth investments. And so that's kind of the balance 590 00:26:28,520 --> 00:26:31,480 Speaker 2: that we look at between you know, maximizing profitability and 591 00:26:31,520 --> 00:26:32,680 Speaker 2: maximizing productivity. 592 00:26:33,760 --> 00:26:36,600 Speaker 1: So we can't talk about the brokerge industry, or trucking 593 00:26:37,000 --> 00:26:41,239 Speaker 1: or or technology without adjussing fraud kind of what are 594 00:26:41,280 --> 00:26:44,920 Speaker 1: you doing with that aspects? How are you combating fraud 595 00:26:45,000 --> 00:26:48,280 Speaker 1: which has become an increasing problem for the freight markets. 596 00:26:48,640 --> 00:26:51,040 Speaker 2: Yeah, fraud is a massive issue, and you know, it's 597 00:26:51,080 --> 00:26:53,600 Speaker 2: a lot of the articles that you're reading online. You know, 598 00:26:53,640 --> 00:26:56,639 Speaker 2: there's a lot of you know, different perspectives of what 599 00:26:56,680 --> 00:26:59,359 Speaker 2: we can do to improve as an industry, and so 600 00:26:59,680 --> 00:27:02,640 Speaker 2: Arrive has spent a lot of time and energy investing 601 00:27:02,680 --> 00:27:05,480 Speaker 2: in different you know, integrations, whether it's using highway, whether 602 00:27:05,560 --> 00:27:08,879 Speaker 2: it's really tightening up our own internal SOPs. We have 603 00:27:08,920 --> 00:27:12,960 Speaker 2: an entire fraud detection team of former detective that literally 604 00:27:13,040 --> 00:27:15,440 Speaker 2: you know, tracks downloads and works with local law enforcement 605 00:27:15,520 --> 00:27:18,919 Speaker 2: to recover stone loads. That typically was something we used 606 00:27:18,960 --> 00:27:21,560 Speaker 2: to outsource. But it really just comes down to like 607 00:27:21,720 --> 00:27:24,560 Speaker 2: really good internal control right at the end of the day. 608 00:27:24,960 --> 00:27:27,199 Speaker 2: Are you doing your diligence. Are you making sure that 609 00:27:27,240 --> 00:27:29,320 Speaker 2: you're loading a carre that you know and you trust. 610 00:27:29,640 --> 00:27:31,880 Speaker 2: Are you making sure that the dispatcher is who they 611 00:27:31,920 --> 00:27:34,840 Speaker 2: say they are, Are you working with cares that are reputable. 612 00:27:35,080 --> 00:27:36,919 Speaker 2: There's just so many different things that we can do 613 00:27:36,960 --> 00:27:39,440 Speaker 2: as an industry to really crack down on it. Yes, 614 00:27:39,480 --> 00:27:41,840 Speaker 2: there's the technology and there's the people that are coming 615 00:27:41,840 --> 00:27:43,640 Speaker 2: from all over the world that are you know, trying 616 00:27:43,640 --> 00:27:46,320 Speaker 2: to hack into people's emails and get into the care reportals. 617 00:27:46,359 --> 00:27:48,719 Speaker 2: There's things we're going to prevent that. But at an 618 00:27:48,720 --> 00:27:51,480 Speaker 2: aggregate level, I mean, we definitely were a victim of 619 00:27:51,720 --> 00:27:54,240 Speaker 2: fraudulent thefts over the course of the last couple of years, 620 00:27:54,240 --> 00:27:56,960 Speaker 2: But the last six hundred thousand loads that Arrive we've 621 00:27:56,960 --> 00:28:00,440 Speaker 2: had zero fraudulent thefts, and so we feel really confident 622 00:28:00,480 --> 00:28:02,840 Speaker 2: that we're getting ahead of it, that we're investing in 623 00:28:02,880 --> 00:28:05,280 Speaker 2: the right tools, the right resources, building the right teams. 624 00:28:05,840 --> 00:28:08,440 Speaker 2: But I don't see this trend going anywhere anytime soon, 625 00:28:08,640 --> 00:28:11,639 Speaker 2: especially where rates are in the industry. And so I 626 00:28:11,680 --> 00:28:14,080 Speaker 2: think we as an industry, you know, whether it's DAT, 627 00:28:14,320 --> 00:28:17,800 Speaker 2: whether it's you know, truck truckers, truck stop, whether it's highway, 628 00:28:18,080 --> 00:28:19,679 Speaker 2: they all need to you know, pitch in and make 629 00:28:19,720 --> 00:28:22,520 Speaker 2: sure they're working on different compliance tools that allow us 630 00:28:22,560 --> 00:28:24,400 Speaker 2: to be more successful as an industry as well. 631 00:28:24,400 --> 00:28:25,480 Speaker 3: And so it's a team sport. 632 00:28:25,600 --> 00:28:27,879 Speaker 2: And so we do feel that Arrive has got a 633 00:28:27,920 --> 00:28:30,040 Speaker 2: good handle on it, but for us to do it, 634 00:28:30,040 --> 00:28:31,560 Speaker 2: it's taking out a lot of capacity. 635 00:28:31,560 --> 00:28:33,960 Speaker 3: We're having to be extremely strict on. 636 00:28:33,880 --> 00:28:35,560 Speaker 2: What we're doing day to data and make sure that 637 00:28:35,600 --> 00:28:36,800 Speaker 2: our customers aren't at risk. 638 00:28:37,640 --> 00:28:41,360 Speaker 1: Gotcha, and let's let's, I guess talk about the truckload market. 639 00:28:41,480 --> 00:28:44,480 Speaker 1: Since you know, as you mentioned, most of your businesses 640 00:28:44,520 --> 00:28:47,880 Speaker 1: in the full truckloak market. What what are you guys 641 00:28:47,960 --> 00:28:51,720 Speaker 1: seeing from your vantage point? You know, the recovery and 642 00:28:51,800 --> 00:28:54,760 Speaker 1: rates have been extremely slow, probably a lot slower than 643 00:28:54,800 --> 00:28:57,480 Speaker 1: most of us thought it would be twelve months ago. 644 00:28:58,400 --> 00:28:59,880 Speaker 1: If you can just give us a little update on 645 00:29:00,200 --> 00:29:02,320 Speaker 1: you know, what you're seeing in the truckload market. 646 00:29:02,360 --> 00:29:05,360 Speaker 2: Now, Look, I think I've always been very hesitant to 647 00:29:05,400 --> 00:29:08,440 Speaker 2: call a market turn. You know, over the last two 648 00:29:08,560 --> 00:29:11,120 Speaker 2: or three years, I've been very vocal and a lot 649 00:29:11,160 --> 00:29:14,240 Speaker 2: of you know, closed sessions and open sessions, whether it's panels, 650 00:29:14,280 --> 00:29:17,720 Speaker 2: et cetera. That the most important indicator is, you know, 651 00:29:17,760 --> 00:29:20,600 Speaker 2: what is the delta between spotting contract rates? And the 652 00:29:20,600 --> 00:29:24,360 Speaker 2: delta between spotting contract is still significant and so you know, 653 00:29:24,720 --> 00:29:28,000 Speaker 2: the tenor rejections are low, the delta between spotting contract 654 00:29:28,120 --> 00:29:31,120 Speaker 2: is is high. You know, the market, in my opinion, 655 00:29:31,200 --> 00:29:33,400 Speaker 2: is not in a position to be disrupted. Yet we 656 00:29:33,480 --> 00:29:36,360 Speaker 2: need to see more capacity exit and we need to 657 00:29:36,360 --> 00:29:40,360 Speaker 2: see more demand return to the market. You know, obviously freight, freight, 658 00:29:40,360 --> 00:29:43,080 Speaker 2: waves and DAT and there's so many different great data 659 00:29:43,120 --> 00:29:45,080 Speaker 2: providers out there that all have a different spin on it, 660 00:29:45,360 --> 00:29:47,560 Speaker 2: but they're all pretty much in agreement that you know, 661 00:29:47,600 --> 00:29:51,040 Speaker 2: capacity is pretty much consistent, it's not exiting at the 662 00:29:51,120 --> 00:29:53,200 Speaker 2: rate that we thought it would be, and demand is 663 00:29:53,560 --> 00:29:57,040 Speaker 2: being destructed. And so the combination of those things you 664 00:29:57,080 --> 00:30:00,320 Speaker 2: are going to lead to continuing challenging environment. And so 665 00:30:00,440 --> 00:30:03,040 Speaker 2: for us, you know, we love when the market's in 666 00:30:03,080 --> 00:30:05,720 Speaker 2: our favor. We obviously grow more, we can take more 667 00:30:05,760 --> 00:30:08,720 Speaker 2: market share, we can get in with more customers. But 668 00:30:08,840 --> 00:30:11,360 Speaker 2: the end of the day, like we we're accepting the 669 00:30:11,400 --> 00:30:13,560 Speaker 2: reality that we're in and we just have to improve 670 00:30:13,600 --> 00:30:15,760 Speaker 2: as an organization. Right the only things that we can 671 00:30:15,800 --> 00:30:17,720 Speaker 2: control is we can get better as a company. We 672 00:30:17,720 --> 00:30:20,880 Speaker 2: can hire better, train better, have better relationships with our customers, 673 00:30:20,880 --> 00:30:24,120 Speaker 2: have better relationships with our careers, build better technology, take 674 00:30:24,120 --> 00:30:26,600 Speaker 2: costs out of our cost structure, and just get better. 675 00:30:27,320 --> 00:30:29,600 Speaker 2: Because sitting around hoping for the market to change is 676 00:30:29,600 --> 00:30:33,000 Speaker 2: a fool's game. And so you know, we're very we're 677 00:30:33,120 --> 00:30:35,560 Speaker 2: very comfortable in the market that we're in. We're getting 678 00:30:35,560 --> 00:30:39,160 Speaker 2: better every year. And so, look, I'm not going to 679 00:30:39,200 --> 00:30:40,720 Speaker 2: sit here and say that twenty six is the year 680 00:30:40,760 --> 00:30:42,840 Speaker 2: for the industry to change. I think there's a lot 681 00:30:42,840 --> 00:30:46,000 Speaker 2: of unknowns. I think federal regulation is the only thing 682 00:30:46,040 --> 00:30:48,760 Speaker 2: that could change it on a dime, and that will 683 00:30:48,760 --> 00:30:51,320 Speaker 2: be that will be really interesting what the administration does 684 00:30:51,360 --> 00:30:55,800 Speaker 2: with you know, the English English proficiency, you know, the 685 00:30:55,880 --> 00:30:58,400 Speaker 2: non documented drivers, and there's a lot of stuff going 686 00:30:58,440 --> 00:31:01,960 Speaker 2: around with you know, and world right now. I think 687 00:31:02,000 --> 00:31:05,640 Speaker 2: that would be catastrophic to rates for the shippers, and 688 00:31:05,680 --> 00:31:07,320 Speaker 2: so I don't know if they're going to make a 689 00:31:07,480 --> 00:31:11,560 Speaker 2: hard stance on that and cause rates to double overnight. 690 00:31:11,640 --> 00:31:13,800 Speaker 2: And so it's going to be an interesting next six 691 00:31:13,840 --> 00:31:16,720 Speaker 2: months twelve months in the industry. But without any like 692 00:31:16,800 --> 00:31:20,560 Speaker 2: crazy federal regulation, I don't see demand returning fast enough. 693 00:31:20,560 --> 00:31:23,360 Speaker 2: I don't see drivers exiting fast enough to create any 694 00:31:23,400 --> 00:31:25,360 Speaker 2: type of real volatility without some help. 695 00:31:26,040 --> 00:31:29,760 Speaker 1: Yeah, we recently had Derek Leathers from Warner Enterprises on 696 00:31:29,800 --> 00:31:32,200 Speaker 1: the podcast and he noted that, you know, he thought 697 00:31:32,240 --> 00:31:34,920 Speaker 1: that if you know, true enforcement, it could take five 698 00:31:34,960 --> 00:31:37,560 Speaker 1: to fifteen percent of the capacity out of the market, 699 00:31:37,560 --> 00:31:42,400 Speaker 1: which would obviously bode well for rates. You mentioned the 700 00:31:42,480 --> 00:31:46,640 Speaker 1: spread between spot and contractual is there is there a 701 00:31:46,800 --> 00:31:50,080 Speaker 1: spread where like when you see that spread, you're like, oh, 702 00:31:50,640 --> 00:31:53,640 Speaker 1: the market's tightening or this the spread needs to narrow. 703 00:31:53,880 --> 00:31:57,400 Speaker 2: It needs to narrow, and so look it. If you 704 00:31:57,400 --> 00:32:01,040 Speaker 2: look back historically, it's always within us a much closer range. 705 00:32:01,080 --> 00:32:03,520 Speaker 2: I think, I don't have the most recent data, but 706 00:32:03,640 --> 00:32:06,200 Speaker 2: you know DAT puts this out consistently. I haven't looked 707 00:32:06,200 --> 00:32:08,280 Speaker 2: at in the last couple of weeks, but it's been 708 00:32:08,280 --> 00:32:09,680 Speaker 2: in the thirty thirty set range. 709 00:32:09,760 --> 00:32:09,960 Speaker 3: Right. 710 00:32:10,240 --> 00:32:12,440 Speaker 2: Typically, what you see that as in the teams when 711 00:32:12,440 --> 00:32:15,080 Speaker 2: the market is more prime for a disruption, Because what 712 00:32:15,240 --> 00:32:18,040 Speaker 2: has to happen for a freight market disruption is that 713 00:32:18,120 --> 00:32:21,320 Speaker 2: the market in the spot market has to have better 714 00:32:21,480 --> 00:32:24,080 Speaker 2: rates for a long enough period of time that asset 715 00:32:24,160 --> 00:32:27,520 Speaker 2: based carriers are willing to give back contractual freight and 716 00:32:27,560 --> 00:32:29,200 Speaker 2: force shippers to rebent. 717 00:32:29,440 --> 00:32:29,600 Speaker 3: Right. 718 00:32:29,960 --> 00:32:31,960 Speaker 2: And so a one week blip or a two week 719 00:32:32,000 --> 00:32:35,000 Speaker 2: blip of tightness where the contracts in the spot they 720 00:32:35,040 --> 00:32:38,040 Speaker 2: get close, but they never actually cross. Carriers aren't going 721 00:32:38,080 --> 00:32:39,680 Speaker 2: to go give back that contract for a one or 722 00:32:39,720 --> 00:32:42,400 Speaker 2: two week blip. It needs to be a sustained disruption 723 00:32:42,840 --> 00:32:45,080 Speaker 2: where the carriers actually believe they can go back to 724 00:32:45,080 --> 00:32:47,400 Speaker 2: the shippers and get more money, right, and so we 725 00:32:47,520 --> 00:32:51,160 Speaker 2: just haven't seen any period of sustained disruption, whether it's 726 00:32:51,200 --> 00:32:54,800 Speaker 2: demand driven or capacity driven. And so really what we're 727 00:32:54,800 --> 00:32:56,640 Speaker 2: seeing is kind of like a flat market. I mean, 728 00:32:56,680 --> 00:32:59,680 Speaker 2: it's been almost dead flat the last twelve to eighteen months. 729 00:33:00,200 --> 00:33:01,440 Speaker 3: Kind of continuing. 730 00:33:02,280 --> 00:33:07,680 Speaker 1: Yeah, you know, you mentioned some of the stuff that's 731 00:33:07,720 --> 00:33:11,840 Speaker 1: going on with regulations and the Trump administration. Obviously they've 732 00:33:11,880 --> 00:33:16,400 Speaker 1: been a lot more protectionists in nature than past administrations. 733 00:33:17,080 --> 00:33:19,280 Speaker 1: And in the beginning you also mentioned the fact that 734 00:33:19,320 --> 00:33:22,600 Speaker 1: you guys are you know, growing your your Mexico Canadian 735 00:33:22,640 --> 00:33:27,040 Speaker 1: cross border business, has the tariffs and that more pro 736 00:33:27,080 --> 00:33:30,480 Speaker 1: protectionist stances impacted those businesses. 737 00:33:30,960 --> 00:33:33,720 Speaker 2: You know, we've seen periods of volatility around like leading 738 00:33:33,800 --> 00:33:36,480 Speaker 2: up to when they're going to go into effect, but honestly, 739 00:33:36,680 --> 00:33:40,160 Speaker 2: from our our scale, you know, we're moving hundreds of 740 00:33:40,200 --> 00:33:44,239 Speaker 2: truckloads per day in Canada and Mexico, not thousands. You know, 741 00:33:44,240 --> 00:33:48,800 Speaker 2: we're not seeing any crazy, you know, volatility in those markets. Also, 742 00:33:48,880 --> 00:33:51,040 Speaker 2: I think that shippers are just you know, they're kind 743 00:33:51,080 --> 00:33:53,000 Speaker 2: of waiting and seeing, right. I think that's kind of 744 00:33:53,000 --> 00:33:55,360 Speaker 2: the nerave that we're hearing from everyone is you know, 745 00:33:55,640 --> 00:33:57,960 Speaker 2: no one knows what the next you know step looks like. 746 00:33:58,040 --> 00:34:01,200 Speaker 2: I think everyone it's hard to pivot your supply chain overnight, 747 00:34:01,280 --> 00:34:03,680 Speaker 2: and so, you know, do I believe that long term, 748 00:34:03,760 --> 00:34:06,040 Speaker 2: you know, Mexico and Canada should be a winner and 749 00:34:06,080 --> 00:34:08,920 Speaker 2: there should be more freight opportunities in those markets if 750 00:34:08,920 --> 00:34:11,560 Speaker 2: the tariffs continue to hold. Yes, But I don't think 751 00:34:11,600 --> 00:34:15,279 Speaker 2: anyone's confident that there's any kind of sustainability or consistency 752 00:34:15,520 --> 00:34:18,440 Speaker 2: to what we're seeing from the administration. So I think 753 00:34:18,480 --> 00:34:20,319 Speaker 2: it's just a lot of weight in seeing We're not 754 00:34:20,360 --> 00:34:23,360 Speaker 2: seeing any crazy volatility in either of those markets. 755 00:34:23,520 --> 00:34:24,800 Speaker 3: It's kind of business as usual. 756 00:34:24,960 --> 00:34:28,719 Speaker 1: And you know, you mentioned on the beginning of the 757 00:34:28,760 --> 00:34:32,640 Speaker 1: conversation how you know arrive was really more focus on 758 00:34:32,719 --> 00:34:36,160 Speaker 1: the transactional market, and you've moved more and more into 759 00:34:36,800 --> 00:34:41,279 Speaker 1: contractual markets. Could you talk about, you know, what the 760 00:34:41,360 --> 00:34:45,320 Speaker 1: shippers are telling you guys on the contractual business about 761 00:34:45,400 --> 00:34:50,080 Speaker 1: peak or you don't really have that kind of visibility 762 00:34:50,120 --> 00:34:52,880 Speaker 1: from shippers. They'll just come to you when they need you. 763 00:34:54,000 --> 00:34:57,279 Speaker 2: Yeah, I mean it depends, Like Broadbrush, we have a team. 764 00:34:57,400 --> 00:35:00,239 Speaker 2: I mean, we see hundreds and hundreds of shippers every 765 00:35:00,280 --> 00:35:01,839 Speaker 2: single month. We have a team of what we call 766 00:35:01,880 --> 00:35:05,520 Speaker 2: executive sponsors, and they're all former directors or vps at 767 00:35:05,520 --> 00:35:07,400 Speaker 2: Fortune five hundred companies that have come over to the 768 00:35:07,400 --> 00:35:11,480 Speaker 2: broke side and they basically travel and see customers for 769 00:35:11,520 --> 00:35:13,279 Speaker 2: a living. And so we do get a lot of 770 00:35:13,280 --> 00:35:15,880 Speaker 2: different feedback. And I would tell you not any customer 771 00:35:15,920 --> 00:35:18,160 Speaker 2: tells you the same. I think, you know, when you 772 00:35:18,200 --> 00:35:20,759 Speaker 2: work with thousands and thousands of customers, you see a 773 00:35:20,840 --> 00:35:24,080 Speaker 2: little bit of trends, but it really is dependent, Like 774 00:35:24,160 --> 00:35:27,839 Speaker 2: even within the retail you're getting different feedback, right, And 775 00:35:27,920 --> 00:35:30,000 Speaker 2: so I think it's kind of all over the board. 776 00:35:30,239 --> 00:35:32,000 Speaker 3: I think if you look at the data, though, if 777 00:35:32,000 --> 00:35:32,480 Speaker 3: you look. 778 00:35:32,360 --> 00:35:37,200 Speaker 2: At like the freight freight waves data around and bound containers, 779 00:35:37,239 --> 00:35:39,400 Speaker 2: it would probably tell you that there's not going to 780 00:35:39,480 --> 00:35:42,759 Speaker 2: be much of a peak season this year. But look 781 00:35:42,760 --> 00:35:44,640 Speaker 2: at the end of the day, you know, things can 782 00:35:44,719 --> 00:35:46,319 Speaker 2: change in a hurry. But you know, I think the 783 00:35:46,400 --> 00:35:50,399 Speaker 2: data would suggest less of a peak this year. But look, 784 00:35:50,440 --> 00:35:53,040 Speaker 2: we saw some serious rate volatility around Labor Day, right, 785 00:35:53,080 --> 00:35:56,080 Speaker 2: and so the market is potentially in a position that 786 00:35:56,080 --> 00:35:58,280 Speaker 2: you could see some volatility with any kind of hiccup, 787 00:35:58,840 --> 00:36:00,719 Speaker 2: And so we're kind of waiting in seeing but you know, 788 00:36:00,760 --> 00:36:03,200 Speaker 2: if you're a pure data and looking at it from 789 00:36:03,200 --> 00:36:05,440 Speaker 2: that lens, I think you would probably air on the 790 00:36:05,480 --> 00:36:07,000 Speaker 2: side of a very small peak season. 791 00:36:07,239 --> 00:36:09,640 Speaker 1: And are you guys seeing anything different when you guys 792 00:36:09,640 --> 00:36:13,680 Speaker 1: are looking to hire new folks? Just given this seems 793 00:36:13,680 --> 00:36:16,799 Speaker 1: like the job market is deteriorate a little bit over 794 00:36:16,800 --> 00:36:18,960 Speaker 1: the last couple of months. Is it easier for you 795 00:36:18,960 --> 00:36:20,920 Speaker 1: guys to bring people in or do you do you 796 00:36:20,960 --> 00:36:22,200 Speaker 1: get more applicants? 797 00:36:23,320 --> 00:36:25,440 Speaker 2: Yeah, so it's a great question. And so you know, 798 00:36:25,480 --> 00:36:28,200 Speaker 2: we hire, like I said, almost entirely out of college. 799 00:36:28,520 --> 00:36:32,080 Speaker 2: And so we're onboarding the vast majority of our employees 800 00:36:32,080 --> 00:36:35,120 Speaker 2: in January, February, a little bit of March, and then 801 00:36:35,200 --> 00:36:38,440 Speaker 2: almost the rest May, June, July, August, September. And so 802 00:36:38,560 --> 00:36:41,399 Speaker 2: if we're not, if our offers aren't out in Q 803 00:36:41,520 --> 00:36:44,240 Speaker 2: four Q one, those summer roles are hard to hire 804 00:36:44,400 --> 00:36:46,279 Speaker 2: because we have to go outside of our profile and 805 00:36:46,320 --> 00:36:48,239 Speaker 2: we typically don't like to do that. And so it 806 00:36:48,239 --> 00:36:50,799 Speaker 2: will be a really good indicator I think in Q 807 00:36:50,880 --> 00:36:53,160 Speaker 2: three and Q four of this year how the acceptance 808 00:36:53,239 --> 00:36:56,080 Speaker 2: rate is for next summer, right, because I think that's 809 00:36:56,120 --> 00:36:58,760 Speaker 2: when you know it will be our people on college 810 00:36:58,760 --> 00:37:01,600 Speaker 2: campus this quarter. Are they actually at the career fairs? 811 00:37:01,640 --> 00:37:04,120 Speaker 2: Are they extending offers on the entry level? So I 812 00:37:04,160 --> 00:37:06,000 Speaker 2: think it's too early for us to tell. We're just 813 00:37:06,200 --> 00:37:08,560 Speaker 2: I think last week we just started ramping up our 814 00:37:08,600 --> 00:37:12,160 Speaker 2: college presence for this semester, and I think we'll be 815 00:37:12,160 --> 00:37:14,840 Speaker 2: able to tell very quickly on how quickly people are, 816 00:37:14,920 --> 00:37:18,280 Speaker 2: you know, applying, how quickly they're accepting their their their offers, 817 00:37:18,320 --> 00:37:20,480 Speaker 2: and then you know how much volume we're getting that 818 00:37:20,560 --> 00:37:22,880 Speaker 2: in that perspective, So I probably be able to answer 819 00:37:22,880 --> 00:37:23,719 Speaker 2: that better in a month. 820 00:37:23,760 --> 00:37:24,160 Speaker 3: Or's right? 821 00:37:24,200 --> 00:37:26,360 Speaker 1: And are there are there certain universities or colleges that 822 00:37:26,400 --> 00:37:30,920 Speaker 1: you guys focus on that if you've had like success, 823 00:37:30,960 --> 00:37:33,520 Speaker 1: like like these are the folks that are the most 824 00:37:33,560 --> 00:37:35,359 Speaker 1: prepared for a job at Arrive. 825 00:37:36,440 --> 00:37:36,680 Speaker 3: Yeah. 826 00:37:36,719 --> 00:37:39,840 Speaker 2: We we are very data focused and so we have 827 00:37:39,920 --> 00:37:43,839 Speaker 2: a profile by roll, so customer sales, carrier, sales operations. 828 00:37:43,840 --> 00:37:49,000 Speaker 2: They're all very different personalities, different you know, backgrounds, different universities, 829 00:37:49,719 --> 00:37:52,400 Speaker 2: and so we we have a very strict you know 830 00:37:52,480 --> 00:37:53,800 Speaker 2: program that we've put in place. 831 00:37:54,040 --> 00:37:56,000 Speaker 3: Now, what's crazy is like sometimes. 832 00:37:55,560 --> 00:37:57,279 Speaker 2: Schools do really really well and then all of a 833 00:37:57,280 --> 00:37:58,880 Speaker 2: sudden we start to see them fall off. And so 834 00:37:58,920 --> 00:38:00,800 Speaker 2: we'll rotate them out and bring in a new school 835 00:38:00,840 --> 00:38:03,440 Speaker 2: that's like in like an incubation period. And so you know, 836 00:38:03,480 --> 00:38:05,440 Speaker 2: we've got a lot of core schools. I mean what 837 00:38:05,480 --> 00:38:07,560 Speaker 2: I would tell you generally speaking there, we do a 838 00:38:07,640 --> 00:38:10,759 Speaker 2: lot in the Midwest. A lot of our hiring comes 839 00:38:10,760 --> 00:38:14,840 Speaker 2: out of the Midwest, and we relocate those people to Austin, 840 00:38:15,000 --> 00:38:17,960 Speaker 2: to Phoenix, to Tampa. We obviously have two offices already 841 00:38:17,960 --> 00:38:21,640 Speaker 2: in the Midwest and Columbus in Chicago, and so you know, 842 00:38:21,719 --> 00:38:23,759 Speaker 2: I would say the vast majority of our campuses are 843 00:38:23,760 --> 00:38:25,600 Speaker 2: in that part of the world. We are, you know, 844 00:38:25,640 --> 00:38:29,160 Speaker 2: pretty big in the Texas market. You know, we have 845 00:38:29,200 --> 00:38:31,239 Speaker 2: a few schools that we really like in Texas. We 846 00:38:31,280 --> 00:38:34,279 Speaker 2: like some schools in Louisiana. But outside of that, it's 847 00:38:34,280 --> 00:38:35,560 Speaker 2: it's heavy Midwest. 848 00:38:35,280 --> 00:38:37,920 Speaker 1: Right, And just one more on this system, Just curious, 849 00:38:37,920 --> 00:38:41,200 Speaker 1: do you look at people with like logistics majors or 850 00:38:41,280 --> 00:38:44,680 Speaker 1: miners or you're interested more it's more about that personality. 851 00:38:45,840 --> 00:38:50,040 Speaker 2: Yeah, honestly, majors. There's not a lot of people that 852 00:38:50,040 --> 00:38:52,560 Speaker 2: have logistics majors. So for like customer and care sales, 853 00:38:52,719 --> 00:38:55,800 Speaker 2: we're seeing more like sales focused, you know, sales major 854 00:38:55,840 --> 00:38:59,279 Speaker 2: sales miners operations. We definitely take people that have more 855 00:38:59,320 --> 00:39:01,560 Speaker 2: of a background apply chain, people that want to you know, 856 00:39:01,719 --> 00:39:04,399 Speaker 2: do more problem solving for a living, and so those 857 00:39:04,400 --> 00:39:05,840 Speaker 2: are going to be the roles that we would probably 858 00:39:05,840 --> 00:39:10,520 Speaker 2: see those majors. But our salespeople, you know, there, they're salespeople, right. 859 00:39:10,560 --> 00:39:12,719 Speaker 2: They don't care if they're selling logistics or insurance or 860 00:39:12,719 --> 00:39:13,520 Speaker 2: wealth management. 861 00:39:13,760 --> 00:39:14,560 Speaker 3: They just want to do. 862 00:39:14,560 --> 00:39:18,560 Speaker 1: Sales right, right. And so let's talk about the future 863 00:39:18,600 --> 00:39:21,000 Speaker 1: because you know, I know you said you don't like to, 864 00:39:21,680 --> 00:39:24,360 Speaker 1: you know, to tell the future, but or predict the future. 865 00:39:24,400 --> 00:39:26,360 Speaker 1: But you know, you mentioned the fact that you're the 866 00:39:26,440 --> 00:39:30,120 Speaker 1: fourth or fifth largest truckload broker in North America. Where 867 00:39:30,120 --> 00:39:31,640 Speaker 1: do you think a Arrive's going to be in three 868 00:39:31,719 --> 00:39:35,520 Speaker 1: years from now as an organization. 869 00:39:36,880 --> 00:39:40,319 Speaker 2: Well, look, the people ahead of us are big, right, 870 00:39:40,320 --> 00:39:43,200 Speaker 2: You've got h Robinson, You've got TQL, and now you. 871 00:39:43,160 --> 00:39:44,879 Speaker 3: Have RXO Coyote. Yeah. 872 00:39:45,040 --> 00:39:48,400 Speaker 2: RXO Coyote integration definitely punted our ability to take what 873 00:39:48,800 --> 00:39:51,080 Speaker 2: we would consider the third spot for a period of time. 874 00:39:51,360 --> 00:39:54,720 Speaker 2: That was a pretty big merger of two really well 875 00:39:54,800 --> 00:39:59,000 Speaker 2: run companies. And so look for us, we're not paying 876 00:39:59,000 --> 00:40:01,319 Speaker 2: attention to that. We are very focused on playing our 877 00:40:01,360 --> 00:40:03,839 Speaker 2: own game. I'm very confident, like I said earlier, by 878 00:40:03,840 --> 00:40:05,920 Speaker 2: twenty thirty, twenty thirty one will be north of fifteen 879 00:40:05,920 --> 00:40:09,160 Speaker 2: thousand truckloads per day. You know, we're going to continue 880 00:40:09,160 --> 00:40:11,799 Speaker 2: to build great technology, hire great people, and we're going 881 00:40:11,840 --> 00:40:14,359 Speaker 2: to continue to service our customers. I mean, I think 882 00:40:15,080 --> 00:40:17,600 Speaker 2: if you look at the last three years, we're at 883 00:40:17,640 --> 00:40:19,839 Speaker 2: thirty eight here of the Year awards for Fortune five 884 00:40:19,880 --> 00:40:22,600 Speaker 2: hundred shippers, and I think that's more than those three 885 00:40:22,600 --> 00:40:25,000 Speaker 2: companies combined. I'm not sure, but I think it is. 886 00:40:25,400 --> 00:40:27,400 Speaker 2: And so we're going to continue to focus on offering 887 00:40:27,440 --> 00:40:30,200 Speaker 2: the best service that we can. And we think we're 888 00:40:30,200 --> 00:40:32,480 Speaker 2: going to be very very successful from now and into 889 00:40:32,520 --> 00:40:34,720 Speaker 2: the future if we do, if we focus on what matters, 890 00:40:34,719 --> 00:40:37,240 Speaker 2: which is delivering great service and great products to our customers. 891 00:40:38,080 --> 00:40:40,280 Speaker 2: And so, look, we obviously want to continue to climb 892 00:40:40,280 --> 00:40:43,120 Speaker 2: that leaderboard. We want to have, you know, optionality, whether 893 00:40:43,160 --> 00:40:45,080 Speaker 2: we want to go public in twenty thirty or twenty 894 00:40:45,080 --> 00:40:47,440 Speaker 2: thirty one, or we want to stay private. We want 895 00:40:47,480 --> 00:40:49,239 Speaker 2: to just keep our options open. And the only way 896 00:40:49,239 --> 00:40:51,120 Speaker 2: we can do that is by performing every single year. 897 00:40:51,120 --> 00:40:51,840 Speaker 2: And so that's what we'll do. 898 00:40:52,080 --> 00:40:55,240 Speaker 1: Gotcha And I'm sorry if I missed this. You know, 899 00:40:55,280 --> 00:40:59,280 Speaker 1: you said fifteen thousand loads per day by twenty thirty, 900 00:40:59,280 --> 00:41:02,319 Speaker 1: twenty thirty one, So what what would that imply the 901 00:41:02,320 --> 00:41:05,440 Speaker 1: growth at. 902 00:41:04,560 --> 00:41:06,760 Speaker 2: When we look at our growth over the next five years, 903 00:41:06,840 --> 00:41:09,880 Speaker 2: we're looking in like the high teens. You know, it's 904 00:41:10,040 --> 00:41:12,840 Speaker 2: it's a lot easier to grow when you're moving you know, 905 00:41:12,880 --> 00:41:15,880 Speaker 2: one hundred thousand loads a year. But now that we're 906 00:41:16,040 --> 00:41:19,919 Speaker 2: you know, almost you know, almost two million loads, it's 907 00:41:19,920 --> 00:41:22,080 Speaker 2: still a lot of growth when you're growing at that rate. 908 00:41:22,320 --> 00:41:24,759 Speaker 2: And so you know, that's kind of like when we 909 00:41:24,800 --> 00:41:27,879 Speaker 2: look at our five year perspective, we're mid teens growth 910 00:41:27,960 --> 00:41:28,959 Speaker 2: rate every single year. 911 00:41:29,200 --> 00:41:29,359 Speaker 3: Right. 912 00:41:29,880 --> 00:41:33,080 Speaker 1: So, besides coming on the Talking Transports podcast, what is 913 00:41:33,120 --> 00:41:36,200 Speaker 1: your favorite thing to that you know about your current role? 914 00:41:37,920 --> 00:41:41,040 Speaker 2: So I think it's a combination and I love By 915 00:41:41,080 --> 00:41:43,080 Speaker 2: the way, if you look at me, I hardly do 916 00:41:43,160 --> 00:41:46,760 Speaker 2: any podcasts, so I guess that's a testament to your podcast. 917 00:41:46,840 --> 00:41:49,360 Speaker 2: But no, I usually like to keep a super low profile. 918 00:41:49,480 --> 00:41:53,160 Speaker 2: I really get energized by operating every single day. I'm 919 00:41:53,200 --> 00:41:55,080 Speaker 2: not one of those founders that likes to be out 920 00:41:55,120 --> 00:41:57,120 Speaker 2: of the business. I like to be extremely in the business. 921 00:41:57,880 --> 00:41:59,880 Speaker 2: So what drives me and keeps me excited every day. 922 00:42:00,160 --> 00:42:02,759 Speaker 2: Like it's just there's hundreds of things that arrive can 923 00:42:02,760 --> 00:42:05,040 Speaker 2: do better. And so we have such a great team. 924 00:42:05,400 --> 00:42:07,560 Speaker 2: My leadership team is all bought in. We're not a 925 00:42:07,560 --> 00:42:09,080 Speaker 2: team that's you know, taking days. 926 00:42:08,840 --> 00:42:11,399 Speaker 3: Off to go golf. We're all in it every single day. 927 00:42:11,440 --> 00:42:13,440 Speaker 2: We have a lot of fun together and there's just 928 00:42:13,480 --> 00:42:16,200 Speaker 2: so much opportunity to improve his organization that that's what 929 00:42:16,280 --> 00:42:19,200 Speaker 2: keeps me going. And you just have to be relentless, 930 00:42:19,280 --> 00:42:20,840 Speaker 2: right like, and I think that's our personality. 931 00:42:20,880 --> 00:42:21,360 Speaker 3: We show that. 932 00:42:21,719 --> 00:42:23,960 Speaker 2: You know, yeah, we're up thirty five percent year over year, 933 00:42:23,960 --> 00:42:25,440 Speaker 2: but we should be up forty We should be up 934 00:42:25,480 --> 00:42:27,399 Speaker 2: forty five. We should hire better, we should train better, 935 00:42:27,440 --> 00:42:29,680 Speaker 2: we should have better retention, we should have better growth 936 00:42:29,680 --> 00:42:31,680 Speaker 2: in our modes. And so for me, I just like 937 00:42:31,920 --> 00:42:34,440 Speaker 2: you know, building and finding the problems and you know, 938 00:42:34,480 --> 00:42:36,919 Speaker 2: identify them and solving them. And so you know, that's 939 00:42:36,920 --> 00:42:38,239 Speaker 2: what we do and I think we do it better 940 00:42:38,239 --> 00:42:40,480 Speaker 2: than almost anyone in the business. And we're not scared 941 00:42:40,520 --> 00:42:42,640 Speaker 2: to make changes like a lot of people, Oh, we 942 00:42:42,680 --> 00:42:44,680 Speaker 2: can't change that, it's going to create disruption. It's like 943 00:42:44,719 --> 00:42:47,040 Speaker 2: once you figure something's not working, you just you change it, 944 00:42:47,080 --> 00:42:48,960 Speaker 2: you make it, you make it better, and you move on. 945 00:42:49,080 --> 00:42:51,319 Speaker 3: And so you know, that's what keeps me going every day. 946 00:42:51,400 --> 00:42:53,480 Speaker 1: All right, great, well, I wish you luck on your 947 00:42:53,520 --> 00:42:56,799 Speaker 1: growth story and also I look forward to checking in 948 00:42:56,880 --> 00:42:59,839 Speaker 1: with you down the road to see, you know, if 949 00:42:59,840 --> 00:43:03,120 Speaker 1: you get to those levels that you've you've carved out 950 00:43:03,120 --> 00:43:05,600 Speaker 1: for yourself or the targets you've carved out for yourself 951 00:43:05,719 --> 00:43:08,520 Speaker 1: in twenty thirty twenty thirty one. So and again, Matt 952 00:43:08,560 --> 00:43:10,239 Speaker 1: so much. I really want to thank you so much 953 00:43:10,239 --> 00:43:12,720 Speaker 1: for your time and your insights today. I really appreciate it. 954 00:43:12,760 --> 00:43:15,120 Speaker 2: Appreciate you giving me the opportunity be on here and 955 00:43:15,200 --> 00:43:17,959 Speaker 2: it's not if okay, we're very confident what we're doing. 956 00:43:18,040 --> 00:43:21,279 Speaker 2: It's a win, so okay, and all sincerity. I really 957 00:43:21,320 --> 00:43:23,880 Speaker 2: appreciate the opportunity. And you know, reach out to me 958 00:43:23,920 --> 00:43:25,480 Speaker 2: if you ever have any other questions. But thanks a 959 00:43:25,520 --> 00:43:26,040 Speaker 2: lot for the time. 960 00:43:26,040 --> 00:43:27,920 Speaker 1: All right, Thanks so much, Matt, and I want to 961 00:43:27,960 --> 00:43:30,080 Speaker 1: thank you for tuning in. If you liked the episode, 962 00:43:30,120 --> 00:43:32,920 Speaker 1: please subscribe and leave a review. We've lined up a 963 00:43:33,000 --> 00:43:35,239 Speaker 1: number of great guests for the podcast, so please check 964 00:43:35,280 --> 00:43:39,359 Speaker 1: back to your conversations with c suite executives, shippers, regulators 965 00:43:39,360 --> 00:43:42,239 Speaker 1: and decision makers within the freight markets. Also, if you 966 00:43:42,239 --> 00:43:45,480 Speaker 1: want to learn more about freight transportation markets, check out 967 00:43:45,480 --> 00:43:48,560 Speaker 1: our work on the Bloomberg Terminal, at big and on 968 00:43:48,600 --> 00:43:51,960 Speaker 1: social media. This is Lee Glasgow signing off and thanks 969 00:43:51,960 --> 00:44:01,600 Speaker 1: for talking transports with me. Talk to you next week. Bye,