1 00:00:07,760 --> 00:00:11,320 Speaker 1: Hi everyone, and welcome to Bloomberg Intelligence Talking Transports Podcast. 2 00:00:11,440 --> 00:00:14,920 Speaker 1: I'm your host, Lee Glasgow, Senior Freight, transportation and logistics 3 00:00:14,920 --> 00:00:18,560 Speaker 1: Analysts at Bloomberg Intelligence, Bloomberg's in house research arm of 4 00:00:18,600 --> 00:00:20,680 Speaker 1: almost five hundred analysts and strategists. 5 00:00:20,880 --> 00:00:24,360 Speaker 2: Before diving in a little public service announcement, your support 6 00:00:24,440 --> 00:00:27,280 Speaker 2: is instrumental to keep bringing great guests onto the podcast 7 00:00:27,360 --> 00:00:29,840 Speaker 2: like the one we have today. If you haven't already, 8 00:00:30,040 --> 00:00:32,440 Speaker 2: please do take a moment to follow, rate and share 9 00:00:32,640 --> 00:00:37,279 Speaker 2: the Talking Transports podcast. We appreciate your support. Also, if 10 00:00:37,320 --> 00:00:39,360 Speaker 2: you have an idea for a future episode or just 11 00:00:39,440 --> 00:00:41,680 Speaker 2: want to talk transports, please hit me up on the 12 00:00:41,720 --> 00:00:46,720 Speaker 2: Bloomberg terminal, on LinkedIn or on Twitter at Logistics League. Today, 13 00:00:46,720 --> 00:00:50,959 Speaker 2: we're delighted to have Web estes SS Express Lines President 14 00:00:51,040 --> 00:00:53,840 Speaker 2: and COO. Before being named. 15 00:00:53,479 --> 00:00:57,160 Speaker 3: To those positions in twenty twenty three, Web was Vice 16 00:00:57,200 --> 00:01:01,920 Speaker 3: president of Process Improvement, where you supervise several key departments 17 00:01:01,960 --> 00:01:07,360 Speaker 3: including human resources, culture and communications, marketing, corporate strategy, and IT, 18 00:01:08,160 --> 00:01:13,119 Speaker 3: where he led much of Estes's technology evolution. Web also 19 00:01:13,240 --> 00:01:16,679 Speaker 3: has dedicated much of his career towards identifying opportunities for 20 00:01:16,760 --> 00:01:21,160 Speaker 3: improvement and his focus on company culture spurred Essy recognition 21 00:01:21,280 --> 00:01:25,280 Speaker 3: as a top workplace by Forbes, Women and Trucking, the 22 00:01:25,360 --> 00:01:29,800 Speaker 3: Richmond Times Dispatch, and Best Jobs USA. Web earned a 23 00:01:29,840 --> 00:01:32,600 Speaker 3: bachelor and master's degree in accounting from the College of 24 00:01:32,600 --> 00:01:33,360 Speaker 3: William and Mary. 25 00:01:33,440 --> 00:01:36,800 Speaker 2: So I guess go Tribes. He's also a graduate of 26 00:01:36,840 --> 00:01:39,680 Speaker 2: the ESSES Driving School. Thanks for joining us on the 27 00:01:39,720 --> 00:01:41,360 Speaker 2: Talking Transport podcast Web. 28 00:01:41,640 --> 00:01:43,199 Speaker 4: Yeah, Thinkesley excited to be here. 29 00:01:43,640 --> 00:01:47,240 Speaker 2: Yeah, it's great to have you. And I'm assuming your 30 00:01:47,319 --> 00:01:49,400 Speaker 2: last name is the same name as the company. That's 31 00:01:49,440 --> 00:01:52,400 Speaker 2: not by coincidence, correct, not by coincidence. 32 00:01:52,520 --> 00:01:55,520 Speaker 4: I'm part of a family. We're still privately held, and 33 00:01:55,560 --> 00:01:57,720 Speaker 4: I'm part of the fourth generation here at Estas. 34 00:01:58,560 --> 00:01:58,800 Speaker 2: Yeah. 35 00:01:58,840 --> 00:02:01,200 Speaker 1: And for those that are I'm familiar with us, says, 36 00:02:01,960 --> 00:02:04,440 Speaker 1: if you can just give us a brief description of 37 00:02:04,480 --> 00:02:06,720 Speaker 1: the company and kind of the markets you serve. And 38 00:02:06,840 --> 00:02:09,880 Speaker 1: just for those listening transport topics as you as the 39 00:02:11,040 --> 00:02:15,320 Speaker 1: number eleven four Hire Trucking Company and number four LCL carrier, 40 00:02:15,400 --> 00:02:18,160 Speaker 1: so you know s this is a very very large 41 00:02:18,520 --> 00:02:22,600 Speaker 1: trucking company, private trucking company in North America. 42 00:02:22,639 --> 00:02:25,960 Speaker 4: Sure, yeah, so Es. We've been around ninety three years. 43 00:02:26,800 --> 00:02:32,200 Speaker 4: We service all fifty states Canada, Mexico, Puerto Rico. We're 44 00:02:32,200 --> 00:02:36,680 Speaker 4: in the less than truckload space, which is I call 45 00:02:36,760 --> 00:02:40,360 Speaker 4: us the sandwich between the large truckload industry and then 46 00:02:40,360 --> 00:02:43,600 Speaker 4: the parcel guys which handle the small shipments. So we're 47 00:02:43,639 --> 00:02:46,880 Speaker 4: in that less than truckload space and our company will 48 00:02:46,919 --> 00:02:49,520 Speaker 4: be over right around six billion dollars this year. We 49 00:02:49,600 --> 00:02:53,919 Speaker 4: have twenty three thousand teammates, eleven thousand tractors, and over 50 00:02:53,960 --> 00:02:57,440 Speaker 4: fifty thousand trailers. So we're pretty much in every neighborhood 51 00:02:57,440 --> 00:03:02,240 Speaker 4: around the country serving our customers to meet them where 52 00:03:02,240 --> 00:03:03,800 Speaker 4: they need freight to be moved. 53 00:03:04,520 --> 00:03:06,880 Speaker 2: And you know, roughly, what are your markets? Is it 54 00:03:06,960 --> 00:03:11,239 Speaker 2: like sixty percent industrial manufacturing, forty percent retail? What's the breakout? 55 00:03:12,040 --> 00:03:14,560 Speaker 4: I would put us more at probably sixty percent retail 56 00:03:14,760 --> 00:03:19,760 Speaker 4: and the other way. Okay, we'll deliver over one and 57 00:03:19,800 --> 00:03:24,080 Speaker 4: a half million residential shipments this year. And our company, 58 00:03:24,120 --> 00:03:27,400 Speaker 4: we love servicing the retail space. I mean obviously huge 59 00:03:27,800 --> 00:03:30,840 Speaker 4: in both. I mean we have over twenty thousand customers, 60 00:03:30,919 --> 00:03:33,720 Speaker 4: So I like to say I've never met a customer 61 00:03:33,760 --> 00:03:37,000 Speaker 4: and met freight that I don't like. But we do 62 00:03:37,080 --> 00:03:38,640 Speaker 4: a lot in the retail space as well. 63 00:03:38,840 --> 00:03:41,400 Speaker 2: And when you're delivering to people's homes. Is it white glove, 64 00:03:41,480 --> 00:03:43,640 Speaker 2: you're bringing stuff inside. 65 00:03:43,840 --> 00:03:45,680 Speaker 4: We'll do some of that. It's kind of the whole 66 00:03:45,960 --> 00:03:49,200 Speaker 4: whole gamut from We don't really used to be called 67 00:03:49,240 --> 00:03:52,360 Speaker 4: curbside as an industry, but at this point we call 68 00:03:52,400 --> 00:03:54,200 Speaker 4: it front door, so we like to bring it to 69 00:03:54,240 --> 00:03:56,240 Speaker 4: the front door, and many times we'll take it into 70 00:03:56,320 --> 00:03:57,520 Speaker 4: customer's house as well. 71 00:03:57,960 --> 00:03:59,960 Speaker 2: Okay, And I guess most of that kind of frame 72 00:04:00,160 --> 00:04:05,880 Speaker 2: st of furniture and exercise equipment, things like that. 73 00:04:04,800 --> 00:04:07,080 Speaker 4: That's part of it. I mean, we deliver grills, we 74 00:04:07,160 --> 00:04:12,360 Speaker 4: deliver spot covers, spas. We actually have worked on a 75 00:04:12,400 --> 00:04:15,320 Speaker 4: new liftgate that we now have. It's eight feet long. 76 00:04:16,600 --> 00:04:19,599 Speaker 4: Our operations team love it, except they now know that 77 00:04:19,640 --> 00:04:21,359 Speaker 4: I'm a little bit more willing to take on some 78 00:04:21,480 --> 00:04:24,919 Speaker 4: bigger freight as well. But during the pandemic, it was 79 00:04:24,960 --> 00:04:28,440 Speaker 4: such a squeeze where everybody tried to get everything to 80 00:04:28,520 --> 00:04:32,360 Speaker 4: the customer. There was so much fear of going into 81 00:04:32,400 --> 00:04:34,839 Speaker 4: stores and all those things with COVID that we found 82 00:04:34,839 --> 00:04:38,120 Speaker 4: ourselves delivering basically anything that can get to a home. 83 00:04:38,839 --> 00:04:41,920 Speaker 2: And you mentioned earlier that you're really all across North America, 84 00:04:42,040 --> 00:04:44,720 Speaker 2: so are your facilities in Mexico and Canada. Are they 85 00:04:44,880 --> 00:04:48,120 Speaker 2: SYS facilities? Are you outsourcing it to other providers in 86 00:04:48,160 --> 00:04:49,080 Speaker 2: those regions? 87 00:04:49,320 --> 00:04:52,960 Speaker 4: Sure, so we have partners in Canada and Mexico. So 88 00:04:53,120 --> 00:04:55,760 Speaker 4: the two hundred and twenty facilities that we operate out 89 00:04:55,800 --> 00:04:59,039 Speaker 4: of are all in the US. We actually did in 90 00:04:59,120 --> 00:05:03,200 Speaker 4: the Yellow perchase of FACILITI who actually bought their Hawaii facility. 91 00:05:03,560 --> 00:05:07,600 Speaker 4: So we're excited to open up directly in Hawaii. People 92 00:05:07,680 --> 00:05:10,080 Speaker 4: have asked me why, and part of it is we 93 00:05:10,120 --> 00:05:12,000 Speaker 4: love to grow and that was a market that we 94 00:05:12,080 --> 00:05:14,479 Speaker 4: thought having our boots on the ground would be helpful. 95 00:05:14,800 --> 00:05:17,080 Speaker 4: I've also never been to Hawaii, so maybe it's an 96 00:05:17,080 --> 00:05:19,279 Speaker 4: excuse to make a trip there in the next year. 97 00:05:19,680 --> 00:05:22,680 Speaker 2: Sounds like a good idea. Who knows, Maybe we'll base 98 00:05:22,720 --> 00:05:25,600 Speaker 2: your home office there when she get it, when she 99 00:05:25,640 --> 00:05:30,080 Speaker 2: get a taste of paradise. You mentioned the Yellow bankruptcy. 100 00:05:30,800 --> 00:05:32,680 Speaker 2: Can you just talk about you know, for those that 101 00:05:32,880 --> 00:05:36,520 Speaker 2: don't know Yellow, it was one of the largest LTL carriers. 102 00:05:36,520 --> 00:05:41,320 Speaker 2: It was Union. They've had financial problems pretty much for 103 00:05:41,320 --> 00:05:43,360 Speaker 2: the last twenty years. It just took them a really 104 00:05:43,360 --> 00:05:46,159 Speaker 2: long time to finally go out of business. Can you 105 00:05:46,320 --> 00:05:49,960 Speaker 2: tell us the impact that had on your business. 106 00:05:50,440 --> 00:05:54,640 Speaker 4: Sure, yeah, I mean Yellow has obviously been was the 107 00:05:54,720 --> 00:05:59,040 Speaker 4: largest LTL carrier back in the late two thousands, and 108 00:05:59,279 --> 00:06:01,320 Speaker 4: they were ten They were a ten billion, had twenty 109 00:06:01,320 --> 00:06:03,760 Speaker 4: five percent of the market share, and over the last 110 00:06:03,800 --> 00:06:06,880 Speaker 4: fifteen years they had dwindled down to being a five 111 00:06:07,279 --> 00:06:10,400 Speaker 4: billion revenue company and maybe ten percent of the market. 112 00:06:11,360 --> 00:06:13,720 Speaker 4: So when they went out of business late July early 113 00:06:13,760 --> 00:06:17,760 Speaker 4: August of last year, that was an opportunity for the 114 00:06:17,880 --> 00:06:21,560 Speaker 4: LTL industry. Obviously, the economy from a trucking perspective has 115 00:06:21,600 --> 00:06:25,160 Speaker 4: been slower of late, so that pushed more business to 116 00:06:26,000 --> 00:06:29,800 Speaker 4: the surviving carriers. But when Yellow went out of business. 117 00:06:31,560 --> 00:06:33,840 Speaker 4: Over the last year, they've been selling equipment and real 118 00:06:33,960 --> 00:06:37,040 Speaker 4: estate and all of those types of things. But for us, 119 00:06:37,080 --> 00:06:41,520 Speaker 4: this we definitely saw a big bump in business. Day 120 00:06:41,560 --> 00:06:44,359 Speaker 4: one we call it kind of the three cycles. Like 121 00:06:44,440 --> 00:06:46,880 Speaker 4: Day one was anyone that would pick up their freight. 122 00:06:47,279 --> 00:06:50,200 Speaker 4: Customers gave it to us. He gave it about three months, 123 00:06:50,200 --> 00:06:53,680 Speaker 4: and customers started to rationalize their business and find a 124 00:06:53,680 --> 00:06:55,960 Speaker 4: better home for it. And now we're kind of seeing 125 00:06:55,960 --> 00:06:59,400 Speaker 4: that third phase where more RFPs and more kind of 126 00:06:59,760 --> 00:07:01,800 Speaker 4: we're customers are trying to find the long term home 127 00:07:01,800 --> 00:07:02,960 Speaker 4: for a lot of that freight. 128 00:07:03,360 --> 00:07:06,479 Speaker 2: And for us, is how sticky has the freight been? 129 00:07:07,040 --> 00:07:08,680 Speaker 2: Are you like, do you think you'll hold on to 130 00:07:08,760 --> 00:07:12,800 Speaker 2: ten percent of what you initially got or is it somewhere. 131 00:07:13,080 --> 00:07:16,120 Speaker 4: No, eighty eighty five percent? Probably like most of it. 132 00:07:16,200 --> 00:07:20,320 Speaker 4: I mean we were we were about the same size 133 00:07:20,320 --> 00:07:23,360 Speaker 4: as what Yellow was, both being about five billion at 134 00:07:23,400 --> 00:07:27,760 Speaker 4: the time, and so we picked up about ten percent 135 00:07:27,880 --> 00:07:32,160 Speaker 4: more business kind of day one, and we put in 136 00:07:31,640 --> 00:07:36,360 Speaker 4: a really focused effort. The first two months. Customers were 137 00:07:36,360 --> 00:07:40,120 Speaker 4: okay with poor service, you know, it's hey, can you 138 00:07:40,200 --> 00:07:43,480 Speaker 4: just try your best? But we knew that wasn't gonna last, 139 00:07:43,480 --> 00:07:46,920 Speaker 4: so we put a lot of emphasis on adding resources 140 00:07:47,040 --> 00:07:50,440 Speaker 4: and capacity within our network because we didn't want the 141 00:07:50,440 --> 00:07:52,840 Speaker 4: customers to leave. We wanted we wanted them to call 142 00:07:52,920 --> 00:07:55,720 Speaker 4: us home. So yeah, I would say that we held 143 00:07:55,760 --> 00:07:57,640 Speaker 4: on to most all of that ten percent for the 144 00:07:57,680 --> 00:08:01,200 Speaker 4: first year, and some of it changed, some of it 145 00:08:01,320 --> 00:08:03,120 Speaker 4: we've lost, and some of it we've gained, you know, 146 00:08:03,600 --> 00:08:07,080 Speaker 4: through those different cycles. But overall it's been it's been 147 00:08:07,080 --> 00:08:08,000 Speaker 4: a lot of growth for us. 148 00:08:08,800 --> 00:08:12,440 Speaker 2: Right And were these were most of these new customers 149 00:08:12,520 --> 00:08:14,640 Speaker 2: or were they like current customers that just gave you 150 00:08:14,680 --> 00:08:15,960 Speaker 2: a larger share of their wallet. 151 00:08:16,360 --> 00:08:18,600 Speaker 4: Sure, early on it was it was mainly the same 152 00:08:18,640 --> 00:08:22,320 Speaker 4: customers where we were Yellow was in there and Estus 153 00:08:22,400 --> 00:08:25,480 Speaker 4: was in there as well. The change that we've seen 154 00:08:25,520 --> 00:08:28,280 Speaker 4: from iteration kind of this first two months to today 155 00:08:28,920 --> 00:08:31,480 Speaker 4: is some customers have said, hey, you know, we don't 156 00:08:31,480 --> 00:08:33,680 Speaker 4: want to have but so many eggs in anyone basket. 157 00:08:33,920 --> 00:08:36,520 Speaker 4: Right after you've gone through one of those things, they 158 00:08:36,600 --> 00:08:39,720 Speaker 4: like to spread out the wealth. So so some of 159 00:08:39,720 --> 00:08:41,960 Speaker 4: that business has kind of spread out since then, but 160 00:08:42,520 --> 00:08:44,880 Speaker 4: lee a lot of it stayed. And then yeah, there 161 00:08:44,880 --> 00:08:47,640 Speaker 4: were new customers as well that hadn't heard of Estus. 162 00:08:47,920 --> 00:08:51,640 Speaker 4: We are the largest privately held trucking company in North America, 163 00:08:51,840 --> 00:08:53,760 Speaker 4: but we've also kind of been a quiet company for 164 00:08:53,800 --> 00:08:57,319 Speaker 4: a long time, right, I think we just liked our 165 00:08:57,360 --> 00:09:00,760 Speaker 4: work to speak for itself. But we've started to kind 166 00:09:00,760 --> 00:09:03,200 Speaker 4: of realize, hey, we do a lot of really great stuff. 167 00:09:03,360 --> 00:09:06,600 Speaker 4: We should start, you know, at least letting the public 168 00:09:06,679 --> 00:09:08,719 Speaker 4: know kind of what we do and that we're here 169 00:09:08,760 --> 00:09:10,280 Speaker 4: for them if they need us. Right. 170 00:09:10,320 --> 00:09:14,079 Speaker 2: And then not only you know, did you gain some volumes, 171 00:09:14,200 --> 00:09:17,720 Speaker 2: but you know you mentioned that you you know, got 172 00:09:18,120 --> 00:09:21,240 Speaker 2: a facility, and why you also were able to acquire 173 00:09:21,280 --> 00:09:23,520 Speaker 2: a bunch of other facilities. Can you talk about the 174 00:09:23,559 --> 00:09:26,560 Speaker 2: benefits of those facilities that you're adding to your network? 175 00:09:27,360 --> 00:09:33,480 Speaker 4: Sure, trucking terminals are We joked that we think some 176 00:09:33,480 --> 00:09:36,840 Speaker 4: people would rather have a nuclear power plant or a 177 00:09:36,880 --> 00:09:40,520 Speaker 4: waste dump next door than a trucking company. So it 178 00:09:40,800 --> 00:09:43,960 Speaker 4: gets harder and harder for us as an industry to 179 00:09:44,080 --> 00:09:47,880 Speaker 4: find land parcels where the communities are excited to have 180 00:09:48,000 --> 00:09:50,719 Speaker 4: us be a part of it. And so when when 181 00:09:50,800 --> 00:09:54,560 Speaker 4: Yellow went bankrupt and they owned and leased a large 182 00:09:54,640 --> 00:09:59,880 Speaker 4: number of facilities, they they were attractive to all the 183 00:10:00,120 --> 00:10:04,040 Speaker 4: tail carriers and the industry at large, and so so 184 00:10:04,240 --> 00:10:07,360 Speaker 4: there was an auction. At this point, we've actually purchased 185 00:10:08,200 --> 00:10:13,160 Speaker 4: thirty five of those facilities, some of them and Lee. 186 00:10:13,240 --> 00:10:14,839 Speaker 4: We'd go back a long way, but back in two 187 00:10:14,880 --> 00:10:17,760 Speaker 4: thousand and eight, when Yellow was struggling, we actually bought 188 00:10:17,840 --> 00:10:21,760 Speaker 4: forty of their facilities then to help them when they 189 00:10:21,760 --> 00:10:25,440 Speaker 4: were really on the ropes. And of those forty, many 190 00:10:25,480 --> 00:10:27,880 Speaker 4: of them twenty six of them had already been turned 191 00:10:27,920 --> 00:10:31,080 Speaker 4: back into estes and we were using them. But Yellow 192 00:10:31,120 --> 00:10:35,000 Speaker 4: was still operating in fourteen of those facilities and so 193 00:10:35,040 --> 00:10:38,520 Speaker 4: some of that thirty five has been us actually buying 194 00:10:38,559 --> 00:10:43,160 Speaker 4: our leases back to ultimately move into them. And so 195 00:10:43,920 --> 00:10:47,200 Speaker 4: but of the thirty five, we're already in close to 196 00:10:47,240 --> 00:10:52,520 Speaker 4: half of them. And and I know a terminal, it 197 00:10:52,520 --> 00:10:55,480 Speaker 4: sounds like, well, what's a terminal? So for us, terminals 198 00:10:55,520 --> 00:10:58,200 Speaker 4: are basically these concrete pads that have a lot of doors, 199 00:10:58,320 --> 00:11:01,240 Speaker 4: and it allows us to load trailers and load other 200 00:11:01,240 --> 00:11:05,280 Speaker 4: trailers quickly and efficiently. One of the big things that 201 00:11:05,440 --> 00:11:08,040 Speaker 4: I see missed when people talk about the Yellow facilities, 202 00:11:08,080 --> 00:11:10,320 Speaker 4: it wasn't just the doors. They had a lot of 203 00:11:10,440 --> 00:11:13,559 Speaker 4: great parcels where there was a lot of parking and 204 00:11:14,120 --> 00:11:18,000 Speaker 4: lee we talked about us being large into retail. Retailers 205 00:11:18,360 --> 00:11:21,800 Speaker 4: love having carriers that have a lot of trailers because 206 00:11:21,840 --> 00:11:24,720 Speaker 4: there are times when they'll buy and by the time 207 00:11:24,720 --> 00:11:27,439 Speaker 4: it gets to them, they're maybe not ready for that 208 00:11:27,440 --> 00:11:29,360 Speaker 4: that business, or they need us to hold it a 209 00:11:29,360 --> 00:11:32,760 Speaker 4: little bit longer. And so a big opportunity for us 210 00:11:32,800 --> 00:11:35,480 Speaker 4: is having enough land that when the freight comes in 211 00:11:35,520 --> 00:11:37,880 Speaker 4: if a customer is not ready for it, being able 212 00:11:37,920 --> 00:11:40,240 Speaker 4: to park it and store it and be ready to 213 00:11:40,280 --> 00:11:43,000 Speaker 4: go with when they're ready for it. So so it 214 00:11:43,080 --> 00:11:45,640 Speaker 4: wasn't just the doors, it was the land and it's 215 00:11:45,679 --> 00:11:48,000 Speaker 4: a game changer for US. Lots of markets that I 216 00:11:48,440 --> 00:11:52,720 Speaker 4: could brag about, but ultimately the capabilities. We've added twenty 217 00:11:52,760 --> 00:11:55,600 Speaker 4: five percent more doors over the last three years, and 218 00:11:56,200 --> 00:11:59,839 Speaker 4: fifteen percent of that has been yellow and it allows 219 00:11:59,880 --> 00:12:02,839 Speaker 4: us to say yes to customers where before we might 220 00:12:02,880 --> 00:12:04,280 Speaker 4: have had to have a different conversation. 221 00:12:04,840 --> 00:12:07,880 Speaker 2: And so I guess a lot of the acquisitions that 222 00:12:07,960 --> 00:12:10,720 Speaker 2: you did when it comes to terminals, was that additive 223 00:12:10,800 --> 00:12:14,440 Speaker 2: to your network? Are you are you operating like maybe 224 00:12:14,480 --> 00:12:17,360 Speaker 2: a smaller terminal in one city and you can get 225 00:12:17,360 --> 00:12:20,040 Speaker 2: this bigger one, so maybe you're selling or leasing the 226 00:12:20,080 --> 00:12:22,760 Speaker 2: other terminal, or are you operating both terminals in the 227 00:12:22,800 --> 00:12:23,360 Speaker 2: same area. 228 00:12:23,880 --> 00:12:27,480 Speaker 4: Yeah, both are happening. A good example, we bought a 229 00:12:27,480 --> 00:12:30,240 Speaker 4: Buffalo terminal that's one hundred and seventy doors and we 230 00:12:30,320 --> 00:12:32,880 Speaker 4: have a forty three door terminal right now, we're not 231 00:12:32,880 --> 00:12:34,960 Speaker 4: going to need both of them, so we'll move into 232 00:12:35,000 --> 00:12:39,760 Speaker 4: the new Buffalo and sell or lease our old legacy Buffalo. 233 00:12:40,240 --> 00:12:44,320 Speaker 4: But there were other markets where we were serving multiple cities. 234 00:12:44,320 --> 00:12:49,240 Speaker 4: A good example Temple Texas for US serviced Waco and Austin, 235 00:12:49,880 --> 00:12:53,520 Speaker 4: and so we purchased an Austin, Texas terminal from Yellow 236 00:12:53,880 --> 00:12:55,880 Speaker 4: and now we'll operate out of both of them, which 237 00:12:55,920 --> 00:12:59,240 Speaker 4: will give us just more capacity and being closer to 238 00:12:59,280 --> 00:12:59,800 Speaker 4: the customer. 239 00:13:00,080 --> 00:13:02,840 Speaker 2: Right and Elsin's a growing market, so that's that sounds 240 00:13:02,840 --> 00:13:06,480 Speaker 2: like a win win for Estes for sure. So could 241 00:13:06,520 --> 00:13:09,400 Speaker 2: you just talk about the LTL market right now? You 242 00:13:09,440 --> 00:13:12,720 Speaker 2: know what we've seen a lot of your public peers. 243 00:13:12,920 --> 00:13:16,120 Speaker 2: They're good enough to provide August updates, and you know 244 00:13:16,200 --> 00:13:19,320 Speaker 2: demand has been down call it mid single digits, while 245 00:13:19,400 --> 00:13:23,080 Speaker 2: pricing has been up mid single digits excluding fuel search charged. 246 00:13:24,480 --> 00:13:27,000 Speaker 2: Is that something similar you're seeing at Estes or are 247 00:13:27,040 --> 00:13:28,080 Speaker 2: you seeing something different? 248 00:13:29,200 --> 00:13:33,040 Speaker 4: Yeah, at Estes we're actually up about five percent tonnage, 249 00:13:33,480 --> 00:13:37,319 Speaker 4: so we're actually a little different in that regard. I 250 00:13:37,400 --> 00:13:40,480 Speaker 4: think maybe lee quickly I stepped back might be helpful here. 251 00:13:42,920 --> 00:13:45,200 Speaker 4: We're normally a good bell weather for how the economy 252 00:13:45,280 --> 00:13:48,000 Speaker 4: is doing. But when Yellow went out of business, there's 253 00:13:48,000 --> 00:13:52,240 Speaker 4: been so much movement of freight. It's made us a 254 00:13:52,240 --> 00:13:55,199 Speaker 4: little different. You know, over the last year, a lot 255 00:13:55,200 --> 00:13:57,800 Speaker 4: of the carriers were up or at least you know, flat, 256 00:13:58,160 --> 00:14:00,280 Speaker 4: and a big reason for that was Yellow being out 257 00:14:00,440 --> 00:14:05,080 Speaker 4: kind of helped augment the business levels. It all changed 258 00:14:05,120 --> 00:14:08,360 Speaker 4: when we got to endo July early August, because now 259 00:14:08,360 --> 00:14:11,640 Speaker 4: we have comps that are much harder, and so we 260 00:14:11,720 --> 00:14:15,840 Speaker 4: went from being up ten to eleven percent tonnage down 261 00:14:15,920 --> 00:14:19,120 Speaker 4: to more close to flat, one to two percent up. 262 00:14:20,440 --> 00:14:23,800 Speaker 4: But then very quickly I realized I didn't like seeing 263 00:14:23,800 --> 00:14:28,520 Speaker 4: any red numbers in my metrics, and so we went 264 00:14:28,560 --> 00:14:31,520 Speaker 4: to work and we've been able to bring on business 265 00:14:32,520 --> 00:14:34,320 Speaker 4: typically when we want to bring it on, and so 266 00:14:35,320 --> 00:14:37,320 Speaker 4: the last few weeks we've actually seen it ramp back 267 00:14:37,400 --> 00:14:40,800 Speaker 4: up where we're actually up, like I said, five six percent, 268 00:14:40,960 --> 00:14:44,240 Speaker 4: seven percent tonnage for the last three to four weeks. 269 00:14:44,520 --> 00:14:46,920 Speaker 4: I don't know. There are definitely a lot of moving 270 00:14:46,960 --> 00:14:49,760 Speaker 4: pieces right now. You've got the ports that may be 271 00:14:49,840 --> 00:14:52,720 Speaker 4: going on strike, and so I don't know how much 272 00:14:52,720 --> 00:14:56,240 Speaker 4: of this is kind of an early push to get 273 00:14:56,280 --> 00:15:00,760 Speaker 4: the Christmas freight through the ports before shout down happens. 274 00:15:01,200 --> 00:15:04,520 Speaker 4: So we may see October fall back down. But for US, 275 00:15:04,560 --> 00:15:08,160 Speaker 4: September has been been a really strong month, and in 276 00:15:08,200 --> 00:15:11,080 Speaker 4: August we were still up, not negative. 277 00:15:11,400 --> 00:15:13,440 Speaker 2: All right, And so everyone on Wall Street, we want 278 00:15:13,440 --> 00:15:15,240 Speaker 2: to know, because you know, one of the great things 279 00:15:15,240 --> 00:15:18,479 Speaker 2: about the LTL market is that you guys have pricing discipline. 280 00:15:18,720 --> 00:15:22,480 Speaker 2: It's an extremely consolidated market relative to the truckload market. 281 00:15:22,760 --> 00:15:25,240 Speaker 2: You know, I think the top ten of seventy five 282 00:15:25,280 --> 00:15:29,040 Speaker 2: percent share of something like that. And so that's been 283 00:15:29,080 --> 00:15:32,840 Speaker 2: a real belt, like a real pillar for earnings and 284 00:15:32,920 --> 00:15:35,440 Speaker 2: revenue for the company. So when you're when you're going 285 00:15:35,480 --> 00:15:38,560 Speaker 2: after business, how are you going after it? Are you 286 00:15:38,640 --> 00:15:39,880 Speaker 2: going after it with price? 287 00:15:40,440 --> 00:15:40,520 Speaker 3: No? 288 00:15:40,760 --> 00:15:43,920 Speaker 4: And the whole industry has been has been talking more 289 00:15:43,960 --> 00:15:49,600 Speaker 4: and more about quality and service. And I realized it 290 00:15:49,640 --> 00:15:51,720 Speaker 4: makes sense that every carrier is going to talk about it. 291 00:15:51,880 --> 00:15:54,600 Speaker 4: There's a difference between talking about it and actually performing 292 00:15:54,680 --> 00:15:58,600 Speaker 4: great service. But I think as an industry, you know, 293 00:15:58,680 --> 00:16:02,120 Speaker 4: rates are higher, right and customers ask questions, Hey, when 294 00:16:02,120 --> 00:16:03,840 Speaker 4: I'm paying more, what am I getting for it? And 295 00:16:03,920 --> 00:16:06,840 Speaker 4: so we've seen the whole industry really focus on the 296 00:16:06,880 --> 00:16:11,760 Speaker 4: service component of it and providing good service you know, 297 00:16:12,360 --> 00:16:15,160 Speaker 4: does come with some extra costs. So at ESTs we 298 00:16:16,800 --> 00:16:20,320 Speaker 4: pride ourselves on not trying to win business based on price. 299 00:16:20,640 --> 00:16:23,520 Speaker 4: One main reason for that is if you're the cheapest today, 300 00:16:23,560 --> 00:16:27,000 Speaker 4: you may not be the cheapest tomorrow. And we really 301 00:16:27,040 --> 00:16:30,400 Speaker 4: like to work with customers that catch the vision of 302 00:16:30,400 --> 00:16:32,680 Speaker 4: what we're accomplishing, and so we want to build a 303 00:16:32,720 --> 00:16:37,920 Speaker 4: longer term relationship. So yeah, sure we're competitive. And if 304 00:16:37,960 --> 00:16:39,880 Speaker 4: you if you look at the mass Fio Gale survey, 305 00:16:39,920 --> 00:16:43,880 Speaker 4: which is a big industry wide survey that looks at 306 00:16:43,880 --> 00:16:48,440 Speaker 4: all the LTL cares each year, we consistently kind of 307 00:16:48,440 --> 00:16:53,040 Speaker 4: are by ourselves on the dot where it's four quarters. 308 00:16:53,040 --> 00:16:54,400 Speaker 4: I don't know if you know the four quadrants, but 309 00:16:54,440 --> 00:16:58,000 Speaker 4: it's like price and quality of service, and we have 310 00:16:58,120 --> 00:17:00,800 Speaker 4: really pride ourselves on being in that bottom right quadrant 311 00:17:00,880 --> 00:17:04,399 Speaker 4: and we're kind of all alone where our service is 312 00:17:04,960 --> 00:17:09,280 Speaker 4: far above the mean, but the value or price is 313 00:17:09,320 --> 00:17:13,560 Speaker 4: actually below the mean pretty significantly. So it doesn't mean 314 00:17:13,600 --> 00:17:15,760 Speaker 4: that we're not getting good prices or fair prices, but 315 00:17:16,640 --> 00:17:18,880 Speaker 4: we try to come along our partners for the long term. 316 00:17:19,280 --> 00:17:22,960 Speaker 2: Right, And how do you measure service? SS express? 317 00:17:23,800 --> 00:17:26,399 Speaker 4: Yeah, so, I mean their service gets talked about in 318 00:17:26,400 --> 00:17:28,400 Speaker 4: lots of ways. The on time service is the one 319 00:17:28,400 --> 00:17:32,000 Speaker 4: that you know, we deliver next day service from here 320 00:17:32,040 --> 00:17:34,600 Speaker 4: to here. Did it get there next day? Then you 321 00:17:34,640 --> 00:17:37,800 Speaker 4: also have the claims and the exception ratios of when 322 00:17:37,800 --> 00:17:41,120 Speaker 4: you delivered it. Were they're missing packages or was it damaged. 323 00:17:41,680 --> 00:17:45,280 Speaker 4: Those are the main service components. I'll tell you one 324 00:17:45,280 --> 00:17:49,960 Speaker 4: that gets missed quite often is the pickup service. So 325 00:17:50,520 --> 00:17:52,480 Speaker 4: you know, as carriers were like, well, we didn't pick 326 00:17:52,520 --> 00:17:54,359 Speaker 4: it up, so we couldn't offer next day, and the 327 00:17:54,359 --> 00:17:57,560 Speaker 4: customer's like, well that's still a failure to me, right, Like, 328 00:17:58,000 --> 00:18:00,639 Speaker 4: I'm not just interested in one you pick it up, 329 00:18:00,640 --> 00:18:02,240 Speaker 4: how you do? I'm interested in can you pick it 330 00:18:02,320 --> 00:18:04,879 Speaker 4: up today? And so we've put a huge emphasis on 331 00:18:05,560 --> 00:18:10,400 Speaker 4: our pickup capabilities. Actually, we rolled out a new technology 332 00:18:10,440 --> 00:18:14,320 Speaker 4: two years ago leave where our customers can go on 333 00:18:14,320 --> 00:18:16,600 Speaker 4: our website and they can put in their pickup tracking 334 00:18:16,680 --> 00:18:19,119 Speaker 4: number and we show them do we assign it to 335 00:18:19,160 --> 00:18:22,800 Speaker 4: a driver, what's the driver's name, how many stops away 336 00:18:22,840 --> 00:18:24,960 Speaker 4: in ETA on when we think we're going to be there. 337 00:18:25,760 --> 00:18:28,679 Speaker 4: And what we found one of the biggest surprises was 338 00:18:29,480 --> 00:18:33,200 Speaker 4: our customers love us, maybe even more than I want 339 00:18:33,240 --> 00:18:36,639 Speaker 4: to say this, because of our drivers that they know Jimmy, 340 00:18:36,680 --> 00:18:38,720 Speaker 4: they know Bob, they know Susan, like they know the 341 00:18:38,800 --> 00:18:42,479 Speaker 4: driver that's coming. And so putting that information on our 342 00:18:42,480 --> 00:18:45,159 Speaker 4: website just kind of raised the bar for our customers 343 00:18:45,160 --> 00:18:48,560 Speaker 4: so they could rely on us, not just for the trains, 344 00:18:48,600 --> 00:18:51,280 Speaker 4: the time, but also knowing that we're going to show 345 00:18:51,359 --> 00:18:53,360 Speaker 4: up to get their freight same day. 346 00:18:53,960 --> 00:18:57,119 Speaker 2: Yeah. The people, the relationships are really local. The people 347 00:18:57,160 --> 00:19:00,919 Speaker 2: at the docks, the customers really know the individuals that 348 00:19:00,960 --> 00:19:04,280 Speaker 2: are coming to pick up they're freight. As a kid, 349 00:19:04,520 --> 00:19:06,560 Speaker 2: I worked at a warehouse and I used to remember 350 00:19:06,640 --> 00:19:09,639 Speaker 2: that the guy used to come every like Tuesday and Thursday, 351 00:19:09,520 --> 00:19:11,000 Speaker 2: the LTL carrier. 352 00:19:11,960 --> 00:19:16,040 Speaker 4: Yeah, I've heard that there are customers that even give 353 00:19:16,040 --> 00:19:18,160 Speaker 4: our driver the combo if they need to get in 354 00:19:18,200 --> 00:19:20,160 Speaker 4: for something, And I'm like, don't even tell me that, right, 355 00:19:20,840 --> 00:19:24,160 Speaker 4: But there is a trust that's there. In fact, Leeb, 356 00:19:24,160 --> 00:19:27,359 Speaker 4: we were talking about why zestus up every year and 357 00:19:27,400 --> 00:19:30,320 Speaker 4: a little different. One thing I take very seriously is 358 00:19:30,320 --> 00:19:33,360 Speaker 4: our people. It's a benefit of being private. I don't 359 00:19:33,400 --> 00:19:35,439 Speaker 4: even have a quart. I don't know when my quarters end, 360 00:19:36,040 --> 00:19:38,280 Speaker 4: so I'm not trying to hit a quarterly number, don't. 361 00:19:38,359 --> 00:19:42,800 Speaker 4: I don't focus on that very for me. The people 362 00:19:42,840 --> 00:19:45,760 Speaker 4: that we have are very important and so kind of 363 00:19:45,760 --> 00:19:48,400 Speaker 4: two bullets I can give you there. When COVID happened 364 00:19:48,480 --> 00:19:51,640 Speaker 4: in April of twenty twenty, we didn't lay anybody off. 365 00:19:52,000 --> 00:19:54,920 Speaker 4: We hung on to everybody because I feel like when 366 00:19:54,920 --> 00:19:58,520 Speaker 4: we hire somebody, I've made a commitment that they're gonna 367 00:19:58,880 --> 00:20:01,040 Speaker 4: that they're part of our team. It's my job to 368 00:20:01,119 --> 00:20:03,920 Speaker 4: give them something to do, and they commit to working hard. 369 00:20:04,440 --> 00:20:08,080 Speaker 4: And so the second quarter of twenty twenty we were 370 00:20:08,160 --> 00:20:10,200 Speaker 4: up year every year as a company, and I think 371 00:20:10,200 --> 00:20:11,880 Speaker 4: we may have been the only one in the country 372 00:20:12,440 --> 00:20:15,720 Speaker 4: up with COVID bearing down our necks, and to start 373 00:20:15,800 --> 00:20:18,679 Speaker 4: last year we were down twelve percent, and yet we 374 00:20:18,760 --> 00:20:22,160 Speaker 4: laid we hung on to everybody. So for me, it's 375 00:20:22,200 --> 00:20:24,840 Speaker 4: one of those scenarios where when I'm looking at business 376 00:20:24,840 --> 00:20:28,760 Speaker 4: and volume, it's not just margin, it's also Okay, what 377 00:20:29,119 --> 00:20:31,879 Speaker 4: teammates do I have that we're slow? Where do we 378 00:20:31,880 --> 00:20:33,520 Speaker 4: need to kind of make sure we're taking care of 379 00:20:33,560 --> 00:20:36,359 Speaker 4: them because they take care of me every day with our. 380 00:20:36,240 --> 00:20:39,480 Speaker 2: Customers, right, And you know you mentioned your people and 381 00:20:39,520 --> 00:20:42,480 Speaker 2: obviously some of the most important people in a trucking 382 00:20:42,520 --> 00:20:46,280 Speaker 2: company or the drivers. You know, in your bio it 383 00:20:46,320 --> 00:20:50,280 Speaker 2: says that you have a CDL from an ESTs driving school, 384 00:20:50,600 --> 00:20:53,520 Speaker 2: So can you talk about that. Hey, that's awesome. I 385 00:20:53,640 --> 00:20:55,760 Speaker 2: tried driving a truck once and I killed a lot 386 00:20:55,760 --> 00:20:57,960 Speaker 2: of cones and I don't think I'm allowed back in 387 00:20:58,040 --> 00:21:02,480 Speaker 2: a truck. Ever, again it was a closed lot. Can 388 00:21:02,560 --> 00:21:05,639 Speaker 2: you talk about, you know, the driving schools that you 389 00:21:05,760 --> 00:21:08,600 Speaker 2: have and kind of the benefit to your company and 390 00:21:08,760 --> 00:21:11,680 Speaker 2: kind of the reason why you operate those. 391 00:21:12,280 --> 00:21:16,600 Speaker 4: So we do have driving schools and LEEA, it was 392 00:21:16,640 --> 00:21:18,879 Speaker 4: one of the hardest things I ever had to do 393 00:21:19,000 --> 00:21:21,320 Speaker 4: was learning to drive a truck. I was working for 394 00:21:21,440 --> 00:21:26,760 Speaker 4: my accounting sitting for the accounting tests, and I'll tell 395 00:21:26,760 --> 00:21:31,440 Speaker 4: you driving the truck was harder. So really proud of 396 00:21:31,440 --> 00:21:33,840 Speaker 4: our team. One of the reasons I love that program 397 00:21:34,320 --> 00:21:37,480 Speaker 4: is yeah, I mean, we have over ten thousand drivers, 398 00:21:38,359 --> 00:21:40,760 Speaker 4: but we have twenty three thousand teammates, so we have 399 00:21:40,760 --> 00:21:43,800 Speaker 4: a lot of dock workers and mechanics and clerks, and 400 00:21:43,840 --> 00:21:46,399 Speaker 4: so one of the things that it does is it 401 00:21:46,440 --> 00:21:50,160 Speaker 4: allows your people upward mobility, where you give them an 402 00:21:50,160 --> 00:21:52,439 Speaker 4: opportunity to see that, hey, this can be a career 403 00:21:52,480 --> 00:21:53,960 Speaker 4: for me. Right, I can start on the dock, I 404 00:21:53,960 --> 00:21:56,320 Speaker 4: can move through these other things. And that's important to 405 00:21:56,359 --> 00:22:00,840 Speaker 4: me from a culture perspective. But secondly, and this shocks me, 406 00:22:00,960 --> 00:22:03,040 Speaker 4: but those that go through our driving school have a 407 00:22:03,080 --> 00:22:06,359 Speaker 4: better safety record than those that we hire from the outside. 408 00:22:06,840 --> 00:22:12,399 Speaker 4: So we love sending our employees through our own driving school. 409 00:22:12,560 --> 00:22:15,879 Speaker 4: It costs US about fourteen thousand dollars per person to 410 00:22:15,920 --> 00:22:17,880 Speaker 4: go through our school. The other thing is a lot 411 00:22:17,880 --> 00:22:19,720 Speaker 4: of our drivers will end up working the dock some 412 00:22:20,280 --> 00:22:23,400 Speaker 4: and driving. And so if you can have a dock 413 00:22:23,480 --> 00:22:27,359 Speaker 4: worker that's already working the dock well and then they drive, 414 00:22:27,480 --> 00:22:29,360 Speaker 4: now you've got someone that can do anything you need 415 00:22:29,400 --> 00:22:31,320 Speaker 4: on any given day and gives you a lot of 416 00:22:31,320 --> 00:22:34,080 Speaker 4: flexibility and gives them flexibility in what they do. So 417 00:22:35,040 --> 00:22:37,720 Speaker 4: love the program, could not be more proud of it. 418 00:22:37,800 --> 00:22:41,840 Speaker 2: Are the schools that's open for s this employees? Correct, Okay, gotcha. 419 00:22:42,119 --> 00:22:46,919 Speaker 2: So it's more like an internal development program for your people. 420 00:22:47,359 --> 00:22:49,120 Speaker 4: That's right. We have two schools, one on the east, 421 00:22:49,119 --> 00:22:52,159 Speaker 4: one on the west, and we basically people kind of 422 00:22:52,160 --> 00:22:53,680 Speaker 4: sign up and say, hey, i'd like to do this, 423 00:22:54,280 --> 00:22:58,240 Speaker 4: and they have to get approved by their manager. So 424 00:22:58,640 --> 00:23:00,399 Speaker 4: I tell them, hey, you don't have to up to 425 00:23:00,440 --> 00:23:02,280 Speaker 4: your manager, but you know, make sure you're doing all 426 00:23:02,320 --> 00:23:04,919 Speaker 4: the things you're supposed to do. And yeah, and so 427 00:23:04,960 --> 00:23:08,200 Speaker 4: we'll run three to four hundred drivers or dock workers 428 00:23:08,040 --> 00:23:11,040 Speaker 4: and clerks through that driving program each year. But they're 429 00:23:11,080 --> 00:23:15,120 Speaker 4: all US employees. And yeah, it's an amazing program. 430 00:23:15,680 --> 00:23:17,800 Speaker 2: That's pretty that's pretty cool. So are you able to 431 00:23:19,160 --> 00:23:23,760 Speaker 2: safely and effectively back up a tup tupup trailers? 432 00:23:24,640 --> 00:23:27,399 Speaker 4: When I was doing it, I could get lucky for 433 00:23:27,480 --> 00:23:31,400 Speaker 4: about ten feet, but I would always lose that backpup. 434 00:23:31,480 --> 00:23:35,159 Speaker 4: It is It's an unbelievable thing what our drivers do 435 00:23:35,200 --> 00:23:35,600 Speaker 4: each day. 436 00:23:35,800 --> 00:23:39,800 Speaker 2: Yeah, my mind could never wrap around, move this way 437 00:23:39,840 --> 00:23:43,280 Speaker 2: and the trailer goes the just it was just it was. 438 00:23:43,119 --> 00:23:47,239 Speaker 2: It wasn't pretty. So you know, you mentioned that this 439 00:23:47,320 --> 00:23:50,959 Speaker 2: is a family business. Are there any other ss that 440 00:23:51,000 --> 00:23:52,920 Speaker 2: are involved in the company right now? 441 00:23:53,920 --> 00:23:56,639 Speaker 4: Well, so, we're a family of girls, and I should 442 00:23:56,680 --> 00:23:59,199 Speaker 4: tell you I'm the last one who can pass on 443 00:23:59,240 --> 00:24:02,320 Speaker 4: the name. Estis I have three beautiful I have three 444 00:24:02,359 --> 00:24:05,520 Speaker 4: beautiful daughters, and so it's going to end here because 445 00:24:05,520 --> 00:24:08,040 Speaker 4: I want to stay married and three is our max. 446 00:24:08,440 --> 00:24:12,159 Speaker 4: But have lots of family members with very different names, 447 00:24:12,640 --> 00:24:15,879 Speaker 4: but lots of family members involved. My great granddad had 448 00:24:15,960 --> 00:24:18,800 Speaker 4: lots of kids, and so there's a lot of cousins. 449 00:24:18,800 --> 00:24:22,640 Speaker 4: We call ourselves the four g's. My dad's third generation 450 00:24:22,880 --> 00:24:25,800 Speaker 4: group has maybe five or maybe five cousins that are 451 00:24:25,800 --> 00:24:27,960 Speaker 4: working in the business. And I think in the fourth 452 00:24:28,000 --> 00:24:30,600 Speaker 4: generation we already have five or six, maybe seven even 453 00:24:31,400 --> 00:24:34,520 Speaker 4: cousins that are in the business. Obviously, I get the 454 00:24:34,600 --> 00:24:36,920 Speaker 4: question often is family a good thing or a bad thing? 455 00:24:37,920 --> 00:24:41,359 Speaker 4: So far, it's been an amazing thing. We hold our 456 00:24:41,400 --> 00:24:45,200 Speaker 4: family members to a higher standard than anybody else, and 457 00:24:46,320 --> 00:24:47,840 Speaker 4: you know, the things that we have to work through 458 00:24:47,920 --> 00:24:50,800 Speaker 4: is make sure that the rest of our teammates don't 459 00:24:50,800 --> 00:24:53,720 Speaker 4: feel like they can't get the opportunities to get promotions 460 00:24:53,720 --> 00:24:57,280 Speaker 4: because it's just family members type scenario. But yeah, I 461 00:24:57,320 --> 00:25:00,159 Speaker 4: have a lot. My sister runs our VP of of 462 00:25:01,440 --> 00:25:05,200 Speaker 4: Customer Engagement and she is just killing it. She runs 463 00:25:05,240 --> 00:25:08,320 Speaker 4: circles around me all the time, and it's fun to 464 00:25:08,359 --> 00:25:11,320 Speaker 4: get to come to work and see her and support 465 00:25:11,880 --> 00:25:13,639 Speaker 4: her vision for how we can take care of the 466 00:25:13,640 --> 00:25:14,600 Speaker 4: customer even better. 467 00:25:15,119 --> 00:25:18,720 Speaker 2: Are there any of the previous generations still involved? 468 00:25:19,119 --> 00:25:23,640 Speaker 4: Yeah, my dad is still involved. He's our CEO and 469 00:25:24,040 --> 00:25:28,720 Speaker 4: has been at Estes for forty eight years. And he's 470 00:25:28,720 --> 00:25:32,240 Speaker 4: got several cousins, Billy and Steve Hupp, our CFO and 471 00:25:32,280 --> 00:25:36,800 Speaker 4: executive vice president, and Bobby Spate who runs our ess 472 00:25:37,080 --> 00:25:42,359 Speaker 4: Logistics division, and so yeah, there are definitely one interesting 473 00:25:42,880 --> 00:25:46,560 Speaker 4: part to a family business as you have these generational separations, 474 00:25:47,000 --> 00:25:51,239 Speaker 4: and so sometimes there are these gaps and kind of like, 475 00:25:51,240 --> 00:25:55,680 Speaker 4: how do you slowly but surely give more responsibility that 476 00:25:55,800 --> 00:26:00,119 Speaker 4: next generation, but not too little, not too fast. And 477 00:26:00,560 --> 00:26:02,639 Speaker 4: I can't say enough good things about my dad and 478 00:26:02,680 --> 00:26:07,159 Speaker 4: Billy and Steve and Bobby. I'm here standing on the 479 00:26:07,160 --> 00:26:11,680 Speaker 4: shoulders of giants. They have gifted me a debt free, 480 00:26:12,400 --> 00:26:16,280 Speaker 4: privately held company that goes across the whole country, with 481 00:26:16,680 --> 00:26:19,640 Speaker 4: a culture where employees love being here. So I feel 482 00:26:19,720 --> 00:26:22,760 Speaker 4: very fortunate to get the opportunity that I get. 483 00:26:23,520 --> 00:26:26,440 Speaker 2: And so on Thanksgiving, are you talking about trucking or 484 00:26:26,480 --> 00:26:28,440 Speaker 2: are you talking about football and turkeys? 485 00:26:28,800 --> 00:26:31,040 Speaker 4: My mom has told us it has to be about 486 00:26:31,040 --> 00:26:36,720 Speaker 4: turkey and sweet potatoes. Okay, but but I would be 487 00:26:36,800 --> 00:26:38,479 Speaker 4: lying if I didn't say that my dad and I 488 00:26:38,520 --> 00:26:41,439 Speaker 4: and my sister maybe find some some moments where we 489 00:26:42,560 --> 00:26:44,960 Speaker 4: where we talk a few things or get a few 490 00:26:44,960 --> 00:26:45,719 Speaker 4: things accomplished. 491 00:26:46,320 --> 00:26:49,080 Speaker 2: Right. So, so, turning back to the freight market, so 492 00:26:49,280 --> 00:26:51,760 Speaker 2: what is your expectations for the rest of the year 493 00:26:51,800 --> 00:26:54,520 Speaker 2: in terms of demand? And and I know it's it 494 00:26:54,600 --> 00:26:56,280 Speaker 2: might be a little too early to talk about, but 495 00:26:56,320 --> 00:26:58,280 Speaker 2: what are you thinking about twenty twenty five when it 496 00:26:58,320 --> 00:26:59,359 Speaker 2: comes to LTL Fright. 497 00:27:01,960 --> 00:27:04,399 Speaker 4: Yeah, So I'm not sure if I have the most 498 00:27:04,880 --> 00:27:09,199 Speaker 4: popular view in this space. Obviously, we've been in a 499 00:27:09,200 --> 00:27:12,400 Speaker 4: freight recession the last two years. Things have been slower, 500 00:27:13,000 --> 00:27:17,520 Speaker 4: and there's a variety of reasons for that, but the 501 00:27:17,600 --> 00:27:19,920 Speaker 4: assumption is often made, well, if you're in a recession, 502 00:27:20,040 --> 00:27:21,840 Speaker 4: then when are you going to get out of it? 503 00:27:21,880 --> 00:27:24,840 Speaker 4: And when is it going to rise? My concern with 504 00:27:24,880 --> 00:27:28,080 Speaker 4: that line of thought is twenty one and twenty two 505 00:27:28,119 --> 00:27:30,680 Speaker 4: we're not just a normal boom. I mean, the government 506 00:27:30,680 --> 00:27:34,320 Speaker 4: gave us a ton of money to spend, and you 507 00:27:34,359 --> 00:27:36,879 Speaker 4: couldn't go anywhere. You couldn't go to Taylor Swift concerts 508 00:27:36,880 --> 00:27:39,919 Speaker 4: and Disney trips and a whole lot of services that 509 00:27:40,000 --> 00:27:45,120 Speaker 4: don't really require transportation. And so the question that I'm 510 00:27:45,119 --> 00:27:48,840 Speaker 4: asking is, I think the economy in twenty one twenty 511 00:27:48,880 --> 00:27:52,000 Speaker 4: two is a twelve and we're maybe at an eight 512 00:27:52,320 --> 00:27:55,119 Speaker 4: right now from what I can see, So can it 513 00:27:55,200 --> 00:27:58,440 Speaker 4: go up? Yes? Is there room for you know, more 514 00:27:58,560 --> 00:28:02,840 Speaker 4: economic boom? Yeah, I think it's there. But we're also 515 00:28:02,920 --> 00:28:05,879 Speaker 4: not in as terrible time as I think we maybe 516 00:28:05,880 --> 00:28:09,000 Speaker 4: sometimes want to say it is. As carriers, there's just 517 00:28:09,080 --> 00:28:12,400 Speaker 4: extra capacity in the market and so when I look 518 00:28:12,440 --> 00:28:14,159 Speaker 4: out this next year, I mean I think it's going 519 00:28:14,200 --> 00:28:16,840 Speaker 4: to be about the same for the next six months. 520 00:28:17,200 --> 00:28:20,400 Speaker 4: The electional play role. I thought it was a really 521 00:28:20,440 --> 00:28:22,680 Speaker 4: good sign that the FED lowered interest right to half 522 00:28:22,720 --> 00:28:25,640 Speaker 4: a percent. I think that tells me that they're listening 523 00:28:25,680 --> 00:28:30,679 Speaker 4: and that they're feeling like they needed to make a 524 00:28:30,720 --> 00:28:33,920 Speaker 4: reduction there, and that obviously play can play a significant 525 00:28:33,960 --> 00:28:36,960 Speaker 4: role in housing, which is a big driver for transportation. 526 00:28:37,119 --> 00:28:39,560 Speaker 4: So I think the next six months are pretty flat, 527 00:28:40,880 --> 00:28:44,360 Speaker 4: and hopefully from there we have some really good positive 528 00:28:44,360 --> 00:28:46,600 Speaker 4: news and can keep moving forward. 529 00:28:46,880 --> 00:28:48,880 Speaker 2: You mentioned there might be a little too much capacity 530 00:28:48,880 --> 00:28:53,080 Speaker 2: in the market. Do you see capacity coming out of 531 00:28:53,160 --> 00:28:56,280 Speaker 2: the market or you just see demand filling the capacity 532 00:28:56,360 --> 00:28:57,280 Speaker 2: that's out there. 533 00:28:58,320 --> 00:29:01,520 Speaker 4: When I talk about extra capacity, you know, there hasn't 534 00:29:01,560 --> 00:29:07,880 Speaker 4: been a new LTL company in decades created, so there 535 00:29:07,960 --> 00:29:10,920 Speaker 4: is more LTL capacity with people buying yellow equipment and 536 00:29:11,000 --> 00:29:15,960 Speaker 4: yellow trailer or facilities. But I think what you'll see 537 00:29:16,080 --> 00:29:19,440 Speaker 4: is the truckload industry. I think you'll continue to see 538 00:29:20,280 --> 00:29:23,680 Speaker 4: more and more of the truckload carriers kind of struggling 539 00:29:23,840 --> 00:29:27,360 Speaker 4: and maybe pulling out some capacity. One quick thing that 540 00:29:27,680 --> 00:29:29,800 Speaker 4: I think of us as a Sandwich. And so in 541 00:29:29,880 --> 00:29:34,120 Speaker 4: good economic times, truckload gets away from the multi stops 542 00:29:34,440 --> 00:29:37,960 Speaker 4: and parcel gets away from the larger parcel shipments, and 543 00:29:38,000 --> 00:29:42,440 Speaker 4: so LTL really expands when the economy is slammed, Yeah, 544 00:29:42,440 --> 00:29:46,000 Speaker 4: because the two buns of the Sandwich don't really need 545 00:29:46,040 --> 00:29:49,640 Speaker 4: our freight. But in these slower times, you see truckload 546 00:29:50,040 --> 00:29:53,080 Speaker 4: really dipping into our space multi stops, all those types 547 00:29:53,120 --> 00:29:55,520 Speaker 4: of things, and the parcel guys saying, hey, you know what, 548 00:29:56,000 --> 00:29:58,040 Speaker 4: maybe that big screen TV, we can find a way 549 00:29:58,080 --> 00:30:01,360 Speaker 4: to move it through our network. And so what I'm 550 00:30:01,440 --> 00:30:04,400 Speaker 4: hopeful for with that if the truckload market can find 551 00:30:04,400 --> 00:30:08,400 Speaker 4: more equilibrium, and there may be truckload guys are less 552 00:30:08,400 --> 00:30:11,280 Speaker 4: interested in those multi stops, that more of that business 553 00:30:11,320 --> 00:30:14,680 Speaker 4: could fall back into LTL at some point, But you're 554 00:30:14,680 --> 00:30:17,240 Speaker 4: not going to see. I don't think LTL cares leave 555 00:30:17,280 --> 00:30:20,640 Speaker 4: the market. I mean, there's so much factored into it 556 00:30:20,680 --> 00:30:23,560 Speaker 4: and there's no one losing money right now. So I 557 00:30:23,560 --> 00:30:26,959 Speaker 4: don't think the LTL capacity leaves as much as truckload 558 00:30:27,000 --> 00:30:30,400 Speaker 4: maybe finds equilibrium. It's probably the best thing for LTL. 559 00:30:30,560 --> 00:30:32,240 Speaker 2: Right And when you when you talk about you know, 560 00:30:32,320 --> 00:30:35,040 Speaker 2: excess capacity, and you mentioned Yellow, and you know you 561 00:30:35,120 --> 00:30:38,640 Speaker 2: mentioned earlier that you guys, what thirty five thirty six 562 00:30:39,000 --> 00:30:42,120 Speaker 2: facilities do? You have to reinvest a lot of money 563 00:30:42,160 --> 00:30:45,040 Speaker 2: in those facilities and bring them up to sts standards 564 00:30:45,080 --> 00:30:48,000 Speaker 2: because you know, Yellow is famous for its trailers with 565 00:30:48,040 --> 00:30:51,640 Speaker 2: holes in it and any really old truck. So what 566 00:30:51,640 --> 00:30:52,800 Speaker 2: were their facilities like? 567 00:30:53,160 --> 00:30:57,080 Speaker 4: So the facilities they all depended. You know, some in 568 00:30:57,120 --> 00:31:00,600 Speaker 4: the south didn't have some of the snow, you know, 569 00:31:00,720 --> 00:31:03,560 Speaker 4: asphalt cracks that some of the northern ones had. I mean, 570 00:31:03,800 --> 00:31:07,120 Speaker 4: each one was its own animal. But we have put 571 00:31:07,160 --> 00:31:09,800 Speaker 4: a lot of money into them. You know. The one 572 00:31:09,840 --> 00:31:13,200 Speaker 4: thing for Estes is we're always thinking long term. Being 573 00:31:13,280 --> 00:31:16,200 Speaker 4: debt free makes it really easy for us to say, 574 00:31:16,240 --> 00:31:18,320 Speaker 4: let's put ten million into this facility because we're going 575 00:31:18,400 --> 00:31:21,080 Speaker 4: to be here for forty years, right, So we have 576 00:31:21,200 --> 00:31:24,560 Speaker 4: we have put a lot of money into them. One 577 00:31:24,600 --> 00:31:27,000 Speaker 4: of the reasons you do that is the best time 578 00:31:27,040 --> 00:31:29,200 Speaker 4: to do that is before you move in. Once you've 579 00:31:29,200 --> 00:31:33,600 Speaker 4: moved in, it's really hard to invest and do it 580 00:31:33,640 --> 00:31:37,240 Speaker 4: without disrupting the operation. So they weren't perfect, but the 581 00:31:37,280 --> 00:31:40,160 Speaker 4: bones were good, the concrete slab for the dock was good, 582 00:31:40,680 --> 00:31:44,680 Speaker 4: and there was a lot of positive obviously because we 583 00:31:44,720 --> 00:31:47,240 Speaker 4: spent I don't know, close to three hundred million dollars 584 00:31:47,680 --> 00:31:50,640 Speaker 4: doing this, so we definitely bought something that had value, 585 00:31:50,680 --> 00:31:53,240 Speaker 4: but it did require some work. But Lee, you mentioned 586 00:31:53,240 --> 00:31:56,960 Speaker 4: the trailers, We've actually bought over seven thousand of their trailers, 587 00:31:57,800 --> 00:32:00,240 Speaker 4: not the ones with the holes in them, but you know, 588 00:32:00,280 --> 00:32:05,160 Speaker 4: they had bought their banks had a lot of least 589 00:32:05,320 --> 00:32:08,000 Speaker 4: equipment from like twenty seventeen to twenty twenty, and then 590 00:32:08,040 --> 00:32:11,040 Speaker 4: when Yellow got that loan from the government, they bought 591 00:32:11,080 --> 00:32:12,600 Speaker 4: a lot of equipment, so they had a lot of 592 00:32:12,600 --> 00:32:18,000 Speaker 4: newer equipment. And because we've continued to grow, we saw 593 00:32:18,040 --> 00:32:22,280 Speaker 4: a really strategic opportunity to dip into that and are 594 00:32:22,440 --> 00:32:24,880 Speaker 4: very excited about our trailer fleet from that perspective. 595 00:32:25,120 --> 00:32:28,080 Speaker 2: What is the average age of your tractor and trailers? 596 00:32:29,640 --> 00:32:32,800 Speaker 4: Yeah, I mean our tractor's age, it's about maybe four 597 00:32:32,800 --> 00:32:36,520 Speaker 4: and a half five years of age. We will keep them. 598 00:32:37,440 --> 00:32:41,240 Speaker 4: We've been known to keep them fifteen years. But when 599 00:32:41,240 --> 00:32:44,000 Speaker 4: you look at our new trucks basically go into our 600 00:32:44,040 --> 00:32:46,600 Speaker 4: line haul, our city to city operation that get most 601 00:32:46,600 --> 00:32:50,960 Speaker 4: of the miles, and then as they age down, they 602 00:32:51,040 --> 00:32:54,719 Speaker 4: move into our city fleet where they get less miles 603 00:32:54,760 --> 00:32:58,480 Speaker 4: and can be maintained, you know, kind of close in 604 00:32:58,560 --> 00:33:02,720 Speaker 4: one facility all the time. So both tractors and trailers 605 00:33:03,400 --> 00:33:06,960 Speaker 4: got really expensive during the pandemic. I mean, trailer prices 606 00:33:07,000 --> 00:33:10,880 Speaker 4: went up sixty seven percent, and normally when they go 607 00:33:10,920 --> 00:33:12,360 Speaker 4: up that high, you would at least hope that you 608 00:33:12,360 --> 00:33:15,960 Speaker 4: could buy as many as you wanted, but they were saying, nope, 609 00:33:15,960 --> 00:33:18,880 Speaker 4: this is the price, and you only get three hundred trailers. 610 00:33:19,360 --> 00:33:23,440 Speaker 4: So it made it very hard on all the carriers 611 00:33:23,440 --> 00:33:26,080 Speaker 4: to create capacity. So we ended up refirming a lot 612 00:33:26,120 --> 00:33:28,600 Speaker 4: of equipment and doing whatever it took to keep the 613 00:33:28,600 --> 00:33:33,240 Speaker 4: fleet moving. But with this Yellow purchase, it's it's changing 614 00:33:33,280 --> 00:33:35,560 Speaker 4: that paradigm where we're going to be able to get 615 00:33:35,640 --> 00:33:39,520 Speaker 4: rid of our older trailers and move that age up 616 00:33:39,600 --> 00:33:42,080 Speaker 4: quite well. We did not buy a lot of their tractors. 617 00:33:43,480 --> 00:33:47,040 Speaker 4: Trailers are a little bit more interchangeable, whereas a tractor 618 00:33:47,640 --> 00:33:49,920 Speaker 4: you want the right engine, spack, you want the right 619 00:33:50,400 --> 00:33:52,080 Speaker 4: all the things that you do each day, and a 620 00:33:52,160 --> 00:33:55,880 Speaker 4: tractor is pretty critical. So instead we've been buying a 621 00:33:55,960 --> 00:33:59,880 Speaker 4: lot of new tractors because both tractor and trailer capacity 622 00:34:00,200 --> 00:34:03,040 Speaker 4: has really opened up this year and you can basically 623 00:34:03,040 --> 00:34:06,160 Speaker 4: buy as much as you want, and so that's freed 624 00:34:06,240 --> 00:34:08,160 Speaker 4: us up to buy the right things that we needed 625 00:34:08,200 --> 00:34:11,359 Speaker 4: to buy new while still being strategic with us where 626 00:34:11,360 --> 00:34:12,279 Speaker 4: it made sense. 627 00:34:12,560 --> 00:34:14,480 Speaker 2: When you're looking at equipment, you know, there's a lot 628 00:34:14,520 --> 00:34:17,319 Speaker 2: of talk about, you know, trying to lower emissions, and 629 00:34:17,360 --> 00:34:21,040 Speaker 2: there's a new EPA mandate in twenty twenty seven. What's 630 00:34:21,239 --> 00:34:24,120 Speaker 2: as this approach to that. What are you guys doing? 631 00:34:24,160 --> 00:34:25,600 Speaker 2: What's important to ask to us? 632 00:34:25,960 --> 00:34:29,800 Speaker 4: Man? I love this topically, and I love it because 633 00:34:29,880 --> 00:34:33,120 Speaker 4: I think there's a paradigm shift that everybody in the 634 00:34:33,160 --> 00:34:37,239 Speaker 4: discussion needs to take. When I share. When I say 635 00:34:37,239 --> 00:34:41,000 Speaker 4: the word sustainability in one of my meetings, I can 636 00:34:41,080 --> 00:34:43,799 Speaker 4: see half of the room get really excited, and I 637 00:34:43,800 --> 00:34:46,759 Speaker 4: can see half of the room completely shut down on me. 638 00:34:47,640 --> 00:34:50,960 Speaker 4: And there's kind of this belief that, like sustainability is 639 00:34:51,000 --> 00:34:54,200 Speaker 4: either like the most important thing that our world is facing, 640 00:34:54,480 --> 00:34:59,560 Speaker 4: or it's something that's not even true. And this is 641 00:34:59,800 --> 00:35:03,040 Speaker 4: a place where generations play a role, uh Lee. There 642 00:35:03,160 --> 00:35:09,240 Speaker 4: there is kind of generationally different beliefs around sustainable goals 643 00:35:09,280 --> 00:35:11,840 Speaker 4: and what is needed. And so I've been able to 644 00:35:11,840 --> 00:35:13,520 Speaker 4: step in the last couple of years and say, hey, 645 00:35:14,120 --> 00:35:18,600 Speaker 4: we're debt free, we want to do good in our world, 646 00:35:19,560 --> 00:35:22,640 Speaker 4: so let's lean in. But there are so many win 647 00:35:22,719 --> 00:35:25,960 Speaker 4: win wins out there. Like my commitment to our employees 648 00:35:26,040 --> 00:35:28,200 Speaker 4: is that they'll never hear me say I was going 649 00:35:28,280 --> 00:35:30,880 Speaker 4: to give you a raise, but instead I decided to 650 00:35:31,360 --> 00:35:34,920 Speaker 4: do something for the world right or to be greener 651 00:35:34,960 --> 00:35:37,239 Speaker 4: as a company. We are going to take care of 652 00:35:37,280 --> 00:35:41,319 Speaker 4: our employees. That is the that is that is my 653 00:35:41,520 --> 00:35:45,520 Speaker 4: responsibility as an employer. But within that so many win 654 00:35:45,600 --> 00:35:48,759 Speaker 4: win wins. So we're we're adding solar panels at a 655 00:35:48,760 --> 00:35:52,120 Speaker 4: lot of facilities. We've gone pretty big with electric forklifts. 656 00:35:52,640 --> 00:35:55,880 Speaker 4: We're now starting to do electric yard trucks. We actually 657 00:35:56,040 --> 00:36:00,239 Speaker 4: was were transport topics first and aull Giral winner of 658 00:36:00,280 --> 00:36:04,840 Speaker 4: their Pathfinder Award for sustainability, and it's exciting for me. 659 00:36:05,680 --> 00:36:08,600 Speaker 4: The only caution that would I would make around it. 660 00:36:09,520 --> 00:36:12,000 Speaker 4: The thing that maybe I struggle with with California, and 661 00:36:12,000 --> 00:36:13,799 Speaker 4: I'm sure a lot of your listeners know about the 662 00:36:13,840 --> 00:36:20,120 Speaker 4: California electric tractor requirements over the next ten to fifteen years. 663 00:36:20,400 --> 00:36:22,920 Speaker 4: The thing I don't like about it is when you 664 00:36:22,960 --> 00:36:27,720 Speaker 4: make a goal fifteen years from now. I strongly believe 665 00:36:27,920 --> 00:36:32,480 Speaker 4: in humankind being really smart, like we have brilliant, amazing 666 00:36:32,520 --> 00:36:36,080 Speaker 4: people that live and breathe in our world today. And 667 00:36:36,160 --> 00:36:39,480 Speaker 4: so to say that electricity is going to be the 668 00:36:39,480 --> 00:36:43,080 Speaker 4: solution for fifteen years from now, I think misses an 669 00:36:43,160 --> 00:36:46,160 Speaker 4: opportunity for us to dream and an opportunity to do 670 00:36:46,200 --> 00:36:49,440 Speaker 4: something that might be even better. What I've read is 671 00:36:49,480 --> 00:36:53,400 Speaker 4: that electricity today for trucks doesn't pull out nearly as 672 00:36:53,480 --> 00:36:57,000 Speaker 4: much CO two as you would like to think. I've 673 00:36:57,000 --> 00:37:00,680 Speaker 4: heard numbers around forty percent that because of how we 674 00:37:00,719 --> 00:37:04,800 Speaker 4: create electricity today, an electric truck only pulls out forty 675 00:37:04,800 --> 00:37:07,399 Speaker 4: percent of the CO two. And clearly, if we want 676 00:37:07,400 --> 00:37:10,920 Speaker 4: to make a significant difference in our world, we've got 677 00:37:10,960 --> 00:37:12,960 Speaker 4: to think about other options. So there are things like 678 00:37:13,000 --> 00:37:16,080 Speaker 4: we're more carbon that's actually putting a device on the 679 00:37:16,120 --> 00:37:19,200 Speaker 4: back of the tractor that pulls out sixty to eighty 680 00:37:19,239 --> 00:37:22,160 Speaker 4: percent of the CO two, but it allows a diesel 681 00:37:22,200 --> 00:37:23,920 Speaker 4: engine to still work, so you can do all the 682 00:37:23,920 --> 00:37:26,359 Speaker 4: things that you need to do, and that CO two 683 00:37:26,360 --> 00:37:29,640 Speaker 4: can then be sold to soda companies because that's what's 684 00:37:29,640 --> 00:37:32,560 Speaker 4: in carbonation of our water, you know, with Coca cola 685 00:37:32,600 --> 00:37:34,600 Speaker 4: and stuff, and you can put it in concrete and 686 00:37:34,680 --> 00:37:38,120 Speaker 4: actually make money on the carbon that you're burning, which 687 00:37:38,160 --> 00:37:42,800 Speaker 4: is fascinating, right, So that would be my one caution 688 00:37:43,360 --> 00:37:46,800 Speaker 4: is we thought five years ago natural gas was a solution, 689 00:37:47,040 --> 00:37:49,960 Speaker 4: and now we've kind of come to California gives us 690 00:37:50,000 --> 00:37:52,360 Speaker 4: zero credit for the one hundred and fifty two hundred 691 00:37:52,400 --> 00:37:55,719 Speaker 4: natural gas trucks that we have. So for me, the 692 00:37:55,760 --> 00:37:59,719 Speaker 4: focus is how do we do great things but continue 693 00:37:59,719 --> 00:38:04,120 Speaker 4: to drive for innovation and and do it in a 694 00:38:04,160 --> 00:38:06,640 Speaker 4: way that's going to be affordable but also great for 695 00:38:06,719 --> 00:38:07,120 Speaker 4: our world. 696 00:38:07,640 --> 00:38:10,080 Speaker 2: So what are you trying to do to change that? 697 00:38:10,160 --> 00:38:13,440 Speaker 2: Are you like involved in you know, like the ATA 698 00:38:13,640 --> 00:38:19,120 Speaker 2: or other lobbying groups to to kind of shape what 699 00:38:19,239 --> 00:38:19,920 Speaker 2: legislation is. 700 00:38:19,880 --> 00:38:23,839 Speaker 4: Going to look like. Yeah, so I mentioned were more 701 00:38:23,840 --> 00:38:28,800 Speaker 4: of carbon. That's that's a partner of ours. We're listed 702 00:38:28,840 --> 00:38:31,319 Speaker 4: as the number A four or fifth provider that's going 703 00:38:31,360 --> 00:38:34,880 Speaker 4: to get to test out their tractors. So part of 704 00:38:34,880 --> 00:38:40,040 Speaker 4: it is leaning in with great stories like that to say, hey, 705 00:38:40,080 --> 00:38:41,960 Speaker 4: let's let's kind of continue to drive that. I know 706 00:38:42,040 --> 00:38:44,400 Speaker 4: writers kind of a big driver of that as well, 707 00:38:44,440 --> 00:38:48,400 Speaker 4: and so I think that's that feels like my job 708 00:38:48,600 --> 00:38:52,160 Speaker 4: is to continue to find new ways to push us forward. 709 00:38:52,400 --> 00:38:54,640 Speaker 4: I want to give California credit though. I mean, if 710 00:38:54,640 --> 00:38:57,919 Speaker 4: you remember the trailer skirts that came along, and every 711 00:38:58,080 --> 00:39:01,680 Speaker 4: van needs a trailer skirt, and it carried the whole 712 00:39:01,719 --> 00:39:04,400 Speaker 4: trucking industry kicking and screaming, and then we went and 713 00:39:04,440 --> 00:39:07,080 Speaker 4: tested them and they were brilliant. I mean, they saved 714 00:39:07,120 --> 00:39:09,480 Speaker 4: us a ton of money putting them on, and now 715 00:39:09,520 --> 00:39:13,080 Speaker 4: all of our trailers basically have skirts, right, And so 716 00:39:13,080 --> 00:39:15,640 Speaker 4: so I feel like one of the main things I 717 00:39:15,680 --> 00:39:17,759 Speaker 4: get to do is test a lot of things and 718 00:39:17,800 --> 00:39:21,640 Speaker 4: then things that work share it with the world. I mean, 719 00:39:21,920 --> 00:39:24,799 Speaker 4: I could maybe see it as a competitive advantage for myself, like, hey, 720 00:39:24,800 --> 00:39:27,759 Speaker 4: don't tell anybody how great this is, but I feel 721 00:39:27,800 --> 00:39:29,640 Speaker 4: like we all win when we do things that are 722 00:39:29,640 --> 00:39:30,960 Speaker 4: more sustainable in that regard. 723 00:39:31,480 --> 00:39:35,319 Speaker 2: And so, you know, we're wrapping up here. You've been 724 00:39:35,360 --> 00:39:38,440 Speaker 2: working at the company, probably since you were a kid. 725 00:39:38,480 --> 00:39:43,160 Speaker 2: I'm assuming what was the most difficult job for you 726 00:39:43,239 --> 00:39:46,920 Speaker 2: to do at your time? And asked us. I know 727 00:39:47,239 --> 00:39:49,400 Speaker 2: when I when I was in college, one summer I 728 00:39:49,440 --> 00:39:52,200 Speaker 2: worked the graveyard shift at an LTL carrier and I 729 00:39:52,200 --> 00:39:54,719 Speaker 2: had a load and unloaded trucks and it was like 730 00:39:54,760 --> 00:39:57,759 Speaker 2: one hundred degrees in there. And after that job, I 731 00:39:57,840 --> 00:39:59,560 Speaker 2: became a honor student. 732 00:40:00,320 --> 00:40:01,239 Speaker 4: Yeah, exactly. 733 00:40:01,480 --> 00:40:03,439 Speaker 2: It is very hard work and I am not made 734 00:40:03,480 --> 00:40:06,120 Speaker 2: for this. So what was the hardest thing you had 735 00:40:06,160 --> 00:40:06,319 Speaker 2: to do? 736 00:40:06,880 --> 00:40:08,719 Speaker 4: I mean, first, I would say that every job that 737 00:40:08,760 --> 00:40:12,880 Speaker 4: I've done has come with its challenges. The two hardest. 738 00:40:13,040 --> 00:40:16,880 Speaker 4: Driving a truck was hard, especially night driving. You know, 739 00:40:17,000 --> 00:40:20,400 Speaker 4: being able to stay awake and stay focused. It was 740 00:40:20,440 --> 00:40:22,760 Speaker 4: a hard job. And you know, how do you eat healthy? 741 00:40:22,800 --> 00:40:24,919 Speaker 4: How do you exercise? I mean, all those things were 742 00:40:25,000 --> 00:40:29,880 Speaker 4: hard about driving, But the one that's probably my hardest 743 00:40:29,960 --> 00:40:33,960 Speaker 4: job was being a terminal manager. And the reason I 744 00:40:34,000 --> 00:40:39,080 Speaker 4: say that is in that role, every day you have 745 00:40:39,160 --> 00:40:42,320 Speaker 4: customers complaining about something, or you know, there's a fire 746 00:40:42,880 --> 00:40:47,359 Speaker 4: and having to be the firefighter to save the day. 747 00:40:47,360 --> 00:40:49,560 Speaker 4: But also think bigger than that and figure out how 748 00:40:49,600 --> 00:40:51,680 Speaker 4: do I build processes that my people are going to 749 00:40:51,760 --> 00:40:54,319 Speaker 4: kind of lean into and follow, and then how do 750 00:40:54,360 --> 00:40:56,520 Speaker 4: I take care of my people. If you're doing it 751 00:40:56,560 --> 00:41:02,320 Speaker 4: the right way, every day you're solving. You're solving problems 752 00:41:02,320 --> 00:41:04,799 Speaker 4: to make your people love you more and make your 753 00:41:04,800 --> 00:41:08,879 Speaker 4: customers fall in love with you. And I found many 754 00:41:08,960 --> 00:41:12,200 Speaker 4: days I'd work twelve hours and skip lunch and breakfast 755 00:41:12,280 --> 00:41:14,760 Speaker 4: and come home and just have dinner. I lost forty 756 00:41:14,800 --> 00:41:20,080 Speaker 4: pounds while I was a manager, so that it was hard, 757 00:41:21,280 --> 00:41:25,200 Speaker 4: and kudos go out to them because you know, in 758 00:41:25,239 --> 00:41:27,400 Speaker 4: corporate there are hard parts to my job for sure, 759 00:41:27,440 --> 00:41:32,120 Speaker 4: but mineor big picture and our manager's day in day 760 00:41:32,160 --> 00:41:36,680 Speaker 4: out getting the real work done as it was my 761 00:41:36,719 --> 00:41:37,799 Speaker 4: hardest job for sure. 762 00:41:38,320 --> 00:41:41,200 Speaker 2: Is there anything that keeps you up at night as 763 00:41:41,239 --> 00:41:43,680 Speaker 2: a senior manager at US Express. 764 00:41:43,440 --> 00:41:46,520 Speaker 4: Well, we didn't talk about our cyber attack, but we 765 00:41:46,600 --> 00:41:49,719 Speaker 4: did have a cyber attack that happened October first of 766 00:41:49,840 --> 00:41:51,840 Speaker 4: last year. So we're coming up on a year which 767 00:41:52,520 --> 00:41:54,640 Speaker 4: I joke all the public carriers are going to have 768 00:41:54,680 --> 00:41:58,640 Speaker 4: a much harder comp in October because they handled a 769 00:41:58,640 --> 00:42:00,640 Speaker 4: lot of our business. We lost half of our business 770 00:42:00,680 --> 00:42:04,160 Speaker 4: overnight the moment the cyber attack happened. And so this 771 00:42:04,239 --> 00:42:07,200 Speaker 4: whole year I've spent a lot of time with the 772 00:42:07,239 --> 00:42:12,319 Speaker 4: team just improving processes. And you know, cybersecurity is one 773 00:42:12,320 --> 00:42:14,680 Speaker 4: of those things that you can do everything in your 774 00:42:14,719 --> 00:42:18,000 Speaker 4: power and you still have to, you know, recognize that 775 00:42:18,080 --> 00:42:21,319 Speaker 4: in any moment, something could happen, and so that one 776 00:42:21,400 --> 00:42:23,720 Speaker 4: keeps me up at night. I'll tell you the flip 777 00:42:23,760 --> 00:42:28,160 Speaker 4: side of it, though, is that month I have never 778 00:42:28,239 --> 00:42:32,120 Speaker 4: felt such support from our employees. We actually were doing 779 00:42:32,160 --> 00:42:34,759 Speaker 4: an employee survey during the cyber attack, like right before 780 00:42:34,800 --> 00:42:37,840 Speaker 4: the cyber attack, and we took survey results before and after, 781 00:42:38,200 --> 00:42:41,040 Speaker 4: and our employees gave us four points of a higher 782 00:42:41,160 --> 00:42:45,680 Speaker 4: score post the cyber attack. And our customers have come 783 00:42:45,719 --> 00:42:48,600 Speaker 4: to me so many times saying like we actually believe 784 00:42:48,640 --> 00:42:51,799 Speaker 4: in trusting you more watching you go through that. So 785 00:42:52,600 --> 00:42:54,520 Speaker 4: it keeps me up at night. But I also have 786 00:42:54,640 --> 00:42:57,719 Speaker 4: learned that, like anything, you can kind of survive and 787 00:42:57,800 --> 00:43:01,200 Speaker 4: work through. But that's one that Lee I would prefer 788 00:43:01,280 --> 00:43:02,360 Speaker 4: to never have to do again. 789 00:43:02,719 --> 00:43:06,200 Speaker 2: All right, Well, let's fingers cross and last question would 790 00:43:06,200 --> 00:43:08,239 Speaker 2: I like to ask most of my guests, do you 791 00:43:08,280 --> 00:43:11,600 Speaker 2: have a favorite book on either like leadership or transportation 792 00:43:12,520 --> 00:43:15,160 Speaker 2: that you know really hit your core? 793 00:43:15,719 --> 00:43:19,080 Speaker 4: Transportation, I mean, I mean a lot to me that's valuable. 794 00:43:19,080 --> 00:43:21,680 Speaker 4: There are like some of the news articles, but a 795 00:43:21,719 --> 00:43:25,400 Speaker 4: book that I love start with why is I know 796 00:43:25,440 --> 00:43:31,040 Speaker 4: a famous one, but this next generation of leaders aren't 797 00:43:31,120 --> 00:43:33,799 Speaker 4: looking just for a paycheck. They're looking for something that's 798 00:43:33,840 --> 00:43:36,560 Speaker 4: going to transform our world for the better. And so 799 00:43:37,360 --> 00:43:40,160 Speaker 4: for me, when I read the book, start with why 800 00:43:41,200 --> 00:43:44,640 Speaker 4: it changed my trajectory of how I'm going to lead 801 00:43:44,680 --> 00:43:47,640 Speaker 4: the next thirty years. That one of my biggest jobs 802 00:43:47,920 --> 00:43:52,160 Speaker 4: is to paint the picture of how our people are 803 00:43:52,280 --> 00:43:56,279 Speaker 4: changing our world and being essential, and how can I 804 00:43:56,400 --> 00:43:58,600 Speaker 4: help them get all the barriers out of the way 805 00:43:58,840 --> 00:44:01,640 Speaker 4: so that they can do amazing things. So I love 806 00:44:01,680 --> 00:44:04,400 Speaker 4: that book and it transforms how we do business. 807 00:44:04,920 --> 00:44:07,640 Speaker 2: All right, great, this is a great conversation Web. I 808 00:44:07,680 --> 00:44:08,920 Speaker 2: really appreciate your time. 809 00:44:09,880 --> 00:44:12,319 Speaker 4: Yeah, thanks Lee, this was a privilege all on my side, 810 00:44:12,360 --> 00:44:15,000 Speaker 4: and love your show and appreciate all the time. 811 00:44:15,440 --> 00:44:17,319 Speaker 2: All right, great, and also want to thank you for 812 00:44:17,360 --> 00:44:19,880 Speaker 2: tuning in. If you liked the episode, please subscribe and 813 00:44:19,960 --> 00:44:22,720 Speaker 2: leave a review. We've lined up a number of great 814 00:44:22,760 --> 00:44:25,480 Speaker 2: guests for the podcast. Check back to hear conversations with 815 00:44:25,600 --> 00:44:29,640 Speaker 2: C suite executives, shippers, regulators, and decision makers within the 816 00:44:29,680 --> 00:44:31,839 Speaker 2: freight markets. Thanks everyone, and take care.