1 00:00:07,800 --> 00:00:10,520 Speaker 1: Hi everyone, this is Lee Klaskow when We're Talking Transports. 2 00:00:10,600 --> 00:00:13,880 Speaker 1: Welcome to the Bloomberg Intelligence Talking Transports podcast. I'm your host, 3 00:00:14,160 --> 00:00:18,200 Speaker 1: Lee Klaskow, Senior Freight Transportation Logistics as at Bloomberg Intelligence, 4 00:00:18,400 --> 00:00:21,040 Speaker 1: Bloomberg's in house research arm of almost five hundred analysts 5 00:00:21,079 --> 00:00:24,160 Speaker 1: and strategists around the world. A quick public service announcement 6 00:00:24,239 --> 00:00:28,240 Speaker 1: before we dive in. Your support is instrumental to keep 7 00:00:28,280 --> 00:00:31,440 Speaker 1: bringing great guests and conversations to you, our listeners, and 8 00:00:31,480 --> 00:00:34,239 Speaker 1: we need your support. So please, if you enjoy the podcast, 9 00:00:34,400 --> 00:00:36,720 Speaker 1: share it, like it and leave a comment. Also, if 10 00:00:36,760 --> 00:00:39,480 Speaker 1: you got ideas, feedback, or just want to talk transports, 11 00:00:39,760 --> 00:00:41,680 Speaker 1: I'm always happy to connect. You can find me on 12 00:00:41,720 --> 00:00:46,200 Speaker 1: the Bloomberg terminal, on LinkedIn, and on x at Logistics. Lee. Today, 13 00:00:46,200 --> 00:00:48,559 Speaker 1: I'm very excited to have with us Michael Jarrett, the 14 00:00:48,640 --> 00:00:52,559 Speaker 1: CEO and president of Jarrett, a privately held transportation logistics 15 00:00:52,600 --> 00:00:56,640 Speaker 1: provider he founded in nineteen ninety nine. Welcome to the podcast. Mike. 16 00:00:56,840 --> 00:00:58,680 Speaker 2: Well, thank you very much, Lee, glad to be here. 17 00:00:58,920 --> 00:01:01,760 Speaker 1: All right, So I said something really broad about Jarrett, 18 00:01:01,760 --> 00:01:03,360 Speaker 1: So why don't you give us a little more details. 19 00:01:03,360 --> 00:01:04,520 Speaker 1: What do you guys do? 20 00:01:05,680 --> 00:01:08,920 Speaker 2: Well? We as you said, I founded the company in 21 00:01:09,000 --> 00:01:13,160 Speaker 2: nineteen ninety nine. Prior to founding Jarrett, I worked at 22 00:01:13,240 --> 00:01:18,000 Speaker 2: Roadway if you remember the old Roadway before Yellow Bloe, GM, 23 00:01:18,160 --> 00:01:20,600 Speaker 2: Y or c. That was my first job out of 24 00:01:20,640 --> 00:01:24,160 Speaker 2: college was at Roadway Express. So I learned a lot 25 00:01:24,200 --> 00:01:29,280 Speaker 2: about the freight LTL space, primarily during that first first 26 00:01:29,280 --> 00:01:32,840 Speaker 2: go around at Roadway, and then I went to work 27 00:01:32,880 --> 00:01:36,400 Speaker 2: for FedEx Supply Chain Services and I worked there for 28 00:01:36,520 --> 00:01:39,640 Speaker 2: approximately nine years. You may know, and some of your 29 00:01:39,680 --> 00:01:43,400 Speaker 2: listeners may know, that FedEx before became Supply Chain Services 30 00:01:43,520 --> 00:01:47,160 Speaker 2: was Caliber Logistics. It was part of road Logistics back 31 00:01:47,280 --> 00:01:51,320 Speaker 2: in the early nineties. So I had the great opportunity 32 00:01:51,480 --> 00:01:55,920 Speaker 2: to start on the ground floor at a startup called 33 00:01:56,000 --> 00:02:00,880 Speaker 2: Roadway Logistics. It became Caliber when Roadway spun the company off, 34 00:02:01,080 --> 00:02:03,480 Speaker 2: and then of course FedEx Supply Chain bought it in 35 00:02:03,520 --> 00:02:07,360 Speaker 2: the mid nineties. I spent roughly about eight nine years 36 00:02:07,360 --> 00:02:10,720 Speaker 2: there and then launched Jarrett in nineteen ninety nine. 37 00:02:11,480 --> 00:02:13,720 Speaker 1: So your first job at Roadway were you loading and 38 00:02:13,760 --> 00:02:15,080 Speaker 1: unloading trailers. 39 00:02:15,520 --> 00:02:19,880 Speaker 2: I was a what's called a doc supervisor, and my 40 00:02:20,120 --> 00:02:23,000 Speaker 2: job was to make sure that the trucks got loaded. 41 00:02:23,520 --> 00:02:26,120 Speaker 2: And I'll tell you what they throw you to the 42 00:02:26,160 --> 00:02:31,880 Speaker 2: woltz At roadway. Back in those days, we we you know, 43 00:02:31,919 --> 00:02:34,360 Speaker 2: a new college graduate not know much about freight, going 44 00:02:34,400 --> 00:02:39,480 Speaker 2: out and trying to lead and direct forkliff operators and 45 00:02:39,560 --> 00:02:43,040 Speaker 2: teamsters on unloading trucks. It was an amazing experience for 46 00:02:43,200 --> 00:02:43,919 Speaker 2: me for sure. 47 00:02:45,040 --> 00:02:47,600 Speaker 1: Yeah. I spent one summer working for it and now 48 00:02:47,680 --> 00:02:52,480 Speaker 1: defunct carrier called APA. The midnight shift loading and unloading 49 00:02:52,680 --> 00:02:54,800 Speaker 1: trailers in the summer, probably one of the hardest jobs 50 00:02:54,800 --> 00:02:55,680 Speaker 1: I've ever had. 51 00:02:55,960 --> 00:02:58,600 Speaker 2: It's a look job, especially in the wintertime. And you 52 00:02:58,600 --> 00:03:00,680 Speaker 2: were apac he must be in the north East. 53 00:03:01,040 --> 00:03:01,960 Speaker 1: Yeah, New Jersey. 54 00:03:02,160 --> 00:03:04,679 Speaker 2: Yeah, gets a little cold. 55 00:03:05,200 --> 00:03:07,760 Speaker 1: Yeah, it was a summertime and that's actually equally as 56 00:03:07,800 --> 00:03:11,320 Speaker 1: bad because the trailers were over one hundred degrees. So 57 00:03:11,400 --> 00:03:13,640 Speaker 1: I was in much better shape back then because I 58 00:03:13,680 --> 00:03:16,480 Speaker 1: spread everything off and so Jared. So tell tell us 59 00:03:16,480 --> 00:03:18,600 Speaker 1: about the services that you guys offer and kind of 60 00:03:18,600 --> 00:03:21,200 Speaker 1: what markets and verticals are you involved in. 61 00:03:21,560 --> 00:03:25,040 Speaker 2: Yeah, we're in four main verticals, very diversified from a 62 00:03:25,080 --> 00:03:31,320 Speaker 2: three PL sport perspective. Obviously logistics three PL services we 63 00:03:31,400 --> 00:03:35,400 Speaker 2: do Manny's transportation in the LTL and expedite space. We 64 00:03:35,480 --> 00:03:39,280 Speaker 2: do trucklow brokerage. As part of our logistics services, we 65 00:03:39,360 --> 00:03:44,760 Speaker 2: do international freight forwarding, we do warehousing, order fulfillment e commerce, 66 00:03:45,640 --> 00:03:49,160 Speaker 2: and we also have a fleet services division. So four 67 00:03:49,200 --> 00:03:53,680 Speaker 2: main verticals. Our largest division is our logistics three pl division, 68 00:03:54,480 --> 00:03:57,440 Speaker 2: and then our second largest is our warehousing division. We 69 00:03:57,440 --> 00:04:01,120 Speaker 2: have roughly about a million square feet of warehouses spread 70 00:04:01,120 --> 00:04:04,800 Speaker 2: out across Salt Lake City, Utah for the West coast 71 00:04:05,440 --> 00:04:09,440 Speaker 2: for the Midwest, and northeast Ohio, and then eastern Pennsylvania 72 00:04:09,480 --> 00:04:11,000 Speaker 2: for the eastern seaboard. 73 00:04:11,240 --> 00:04:13,600 Speaker 1: And you're an Ohio based company, correct. 74 00:04:13,400 --> 00:04:16,400 Speaker 2: Yeah, We're based in Orville, Ohio. It's northeast Ohio, about 75 00:04:16,480 --> 00:04:20,760 Speaker 2: fifty minutes south of Cleveland. Orville is kind of famous 76 00:04:20,760 --> 00:04:23,720 Speaker 2: for two things. One it's the home of the Smucker 77 00:04:23,880 --> 00:04:28,839 Speaker 2: Jelly Company, and then also we're the home of Bobby Knight, 78 00:04:28,880 --> 00:04:31,119 Speaker 2: the basketball coach. He was born and raised of Orgonal. 79 00:04:31,880 --> 00:04:33,599 Speaker 1: There you go, Smuckers, that's my jam. 80 00:04:33,960 --> 00:04:37,400 Speaker 2: Yeah, it's a great town. It's a great place to 81 00:04:37,680 --> 00:04:40,000 Speaker 2: as I like to say, a great place to live 82 00:04:40,200 --> 00:04:41,120 Speaker 2: and raise a family. 83 00:04:41,279 --> 00:04:43,560 Speaker 1: And then you know, when you look at Jared relative 84 00:04:43,680 --> 00:04:46,760 Speaker 1: to you know, some of these I guess large publicly 85 00:04:46,800 --> 00:04:50,679 Speaker 1: traded companies. Is there anyone that's close pier of yours? 86 00:04:50,680 --> 00:04:53,080 Speaker 1: Because I know you have diversified businesses, so it's never 87 00:04:53,080 --> 00:04:56,120 Speaker 1: an apples to apples comparison. But you know, who, what 88 00:04:56,200 --> 00:04:58,039 Speaker 1: kind of companies do you benchmark yourself to? 89 00:04:58,440 --> 00:05:03,000 Speaker 2: Well, we obviously being family owned and privately held, we're 90 00:05:03,040 --> 00:05:08,320 Speaker 2: actually one of the largest family held privately held companies 91 00:05:08,400 --> 00:05:12,159 Speaker 2: three pls in the United States. Our growth has been 92 00:05:12,240 --> 00:05:15,799 Speaker 2: pretty amazing. We started in nineteen nine, as I mentioned 93 00:05:15,839 --> 00:05:19,120 Speaker 2: with with no customers. I left FedEx supply chain Services 94 00:05:19,160 --> 00:05:24,600 Speaker 2: to start Jarrett no customers, no revenue, and no employees, 95 00:05:24,960 --> 00:05:28,359 Speaker 2: and we now have over four hundred employees and we 96 00:05:28,520 --> 00:05:33,800 Speaker 2: service numerous Fortune five hundred sized companies, numerous customers are 97 00:05:33,880 --> 00:05:38,200 Speaker 2: multi billion and size. So I like to say, Lee, 98 00:05:38,240 --> 00:05:42,680 Speaker 2: we have no peers. We are we are different than 99 00:05:42,800 --> 00:05:45,760 Speaker 2: any other three pl in the market space. And I 100 00:05:45,800 --> 00:05:50,200 Speaker 2: say that with all sincerity, you won't find a family owned, 101 00:05:50,240 --> 00:05:55,320 Speaker 2: privately held company with our scale ability and broad ability 102 00:05:55,360 --> 00:06:00,480 Speaker 2: to execute supply chain services that is able to do 103 00:06:00,520 --> 00:06:04,480 Speaker 2: what we can do but still remain privately Hell, that's 104 00:06:04,600 --> 00:06:07,359 Speaker 2: that's a big deal. I like to say that we 105 00:06:07,400 --> 00:06:10,560 Speaker 2: don't listen to the boardroom. We listen to our customers 106 00:06:11,240 --> 00:06:13,480 Speaker 2: and there's no other three PL in the market that 107 00:06:13,520 --> 00:06:15,000 Speaker 2: can compare to us. 108 00:06:15,600 --> 00:06:18,680 Speaker 1: Yeah, I mean there's definitely some benefits of being a 109 00:06:18,760 --> 00:06:22,120 Speaker 1: private company. You can be more strategic and longer term 110 00:06:22,360 --> 00:06:26,000 Speaker 1: in your in your decision making versus, you know, managing 111 00:06:26,040 --> 00:06:26,640 Speaker 1: for the quarter. 112 00:06:27,000 --> 00:06:29,000 Speaker 2: Well, I would agree with that. The other thing that 113 00:06:30,360 --> 00:06:32,840 Speaker 2: I think is important to note that makes us different 114 00:06:32,839 --> 00:06:34,920 Speaker 2: than any other three PL is we have no doubt 115 00:06:36,240 --> 00:06:39,360 Speaker 2: and that's you know, we have the cleanest balance sheet 116 00:06:39,400 --> 00:06:42,520 Speaker 2: that you'll see in the three PL space. That allows 117 00:06:42,600 --> 00:06:46,120 Speaker 2: us to think forward and how are we going to 118 00:06:46,320 --> 00:06:50,400 Speaker 2: get better every day and not worry about whether or 119 00:06:50,440 --> 00:06:54,920 Speaker 2: not we're gonna hit some target on share price or 120 00:06:55,680 --> 00:06:59,080 Speaker 2: have a boardroom telling us how we need to change 121 00:06:59,320 --> 00:07:02,720 Speaker 2: or modify our services to our customers. We're always thinking 122 00:07:02,720 --> 00:07:04,600 Speaker 2: about how we're going to service our customers better. 123 00:07:05,560 --> 00:07:08,440 Speaker 1: And so the warehousing that you guys do, do you 124 00:07:08,480 --> 00:07:11,160 Speaker 1: are you leasing that space or are you just own it? Outright? 125 00:07:12,440 --> 00:07:15,600 Speaker 2: Eight hundred thousand square feet we own the other two 126 00:07:15,680 --> 00:07:19,280 Speaker 2: hundred thousand we're leasing. In fact, we just finished building 127 00:07:19,320 --> 00:07:21,440 Speaker 2: a four hundred and eight thousand square foot warehouse in 128 00:07:21,480 --> 00:07:24,000 Speaker 2: northeast Ohio. We just moved into it a couple of 129 00:07:24,080 --> 00:07:28,360 Speaker 2: weeks ago, and we paid cash to build that building. 130 00:07:28,880 --> 00:07:31,440 Speaker 2: It was twenty two million dollar build out. 131 00:07:31,680 --> 00:07:33,320 Speaker 1: Wow, we're very proud of that. 132 00:07:33,880 --> 00:07:36,240 Speaker 2: So for all those listeners out there looking for a 133 00:07:36,280 --> 00:07:39,400 Speaker 2: three pl you know, you want someone who's going to 134 00:07:39,440 --> 00:07:41,800 Speaker 2: think about you as a customer and not about what 135 00:07:41,840 --> 00:07:45,800 Speaker 2: the boardroom tells us, and has the financial flexibility to 136 00:07:47,000 --> 00:07:49,600 Speaker 2: execute your supply chain no matter what the size of 137 00:07:49,680 --> 00:07:50,800 Speaker 2: the supply chain is. 138 00:07:51,840 --> 00:07:54,440 Speaker 1: You come to Jerom right, So I want to dive 139 00:07:54,480 --> 00:07:56,360 Speaker 1: down a little bit in some of your your businesses 140 00:07:56,960 --> 00:07:59,480 Speaker 1: kind of like I want to get to know you 141 00:07:59,480 --> 00:08:02,680 Speaker 1: know you're seeing I'd like to first start in the 142 00:08:02,720 --> 00:08:05,600 Speaker 1: forwarding business. Just given you know, at the time we're 143 00:08:05,640 --> 00:08:09,840 Speaker 1: recording this, we're in day three of the Iran war. 144 00:08:10,240 --> 00:08:12,840 Speaker 1: Hopefully by the time it gets published that'll be done. 145 00:08:13,720 --> 00:08:17,440 Speaker 1: But you know, obviously being in supply chains, you always 146 00:08:17,520 --> 00:08:21,160 Speaker 1: have to deal with disruptions. This is another disruption. Can 147 00:08:21,200 --> 00:08:24,280 Speaker 1: you talk about you know, what you're doing for your customers, 148 00:08:24,440 --> 00:08:28,560 Speaker 1: how are your customers reacting to this? And you know, 149 00:08:28,720 --> 00:08:32,199 Speaker 1: where is the value that Jared brings to the table 150 00:08:33,240 --> 00:08:34,840 Speaker 1: during these types of disruptions. 151 00:08:35,160 --> 00:08:38,680 Speaker 2: Yeah, with the war occurring in the Middle East. It 152 00:08:38,880 --> 00:08:42,240 Speaker 2: obviously on the international side of our business, throws a 153 00:08:42,280 --> 00:08:46,840 Speaker 2: wrench into your plans. I think the biggest thing with 154 00:08:47,360 --> 00:08:49,680 Speaker 2: what's going on right now in the Middle East, obviously 155 00:08:49,720 --> 00:08:54,600 Speaker 2: the straight up Harmuz is closed for the most part. 156 00:08:54,640 --> 00:08:57,200 Speaker 2: I think some ships are making it through. But you 157 00:08:57,200 --> 00:09:00,840 Speaker 2: know MSc, the largest ocean carrier in the world, is 158 00:09:01,040 --> 00:09:05,040 Speaker 2: shut down all lanes through the straight. Marisk is not 159 00:09:05,120 --> 00:09:07,560 Speaker 2: going through the straight or harm moves as well. I 160 00:09:07,559 --> 00:09:12,680 Speaker 2: think twenty percent I've read of the world's oil goes 161 00:09:12,760 --> 00:09:18,800 Speaker 2: through that straight. Roughly four percent of the commodities that 162 00:09:18,880 --> 00:09:21,280 Speaker 2: services the world goes through that straight, which is a 163 00:09:21,440 --> 00:09:23,880 Speaker 2: huge amount. I think it's one hundred and forty one 164 00:09:23,920 --> 00:09:27,440 Speaker 2: hundred and fifty ocean carriers go through that straight every day. 165 00:09:28,240 --> 00:09:31,640 Speaker 2: So what we have to do is re route those 166 00:09:32,040 --> 00:09:35,960 Speaker 2: ocean carriers to other lanes, and we have to keep 167 00:09:36,000 --> 00:09:42,559 Speaker 2: our customers informed through visibility. We do that through our technology. 168 00:09:42,840 --> 00:09:45,640 Speaker 2: We work with a partner called four Kites, which you 169 00:09:45,720 --> 00:09:49,760 Speaker 2: may be familiar with, that provide breadcrumb tracking to our 170 00:09:49,800 --> 00:09:53,480 Speaker 2: customers on a real time basis, and that's really what 171 00:09:53,600 --> 00:09:56,600 Speaker 2: our customers need on the international space. They need to 172 00:09:56,640 --> 00:09:59,720 Speaker 2: know what's going on with their containers, where are they 173 00:09:59,800 --> 00:10:02,920 Speaker 2: at and what's the new ETA based on this disruption. 174 00:10:03,800 --> 00:10:06,520 Speaker 2: That's that's what we really bring value to our customers. 175 00:10:06,520 --> 00:10:09,079 Speaker 2: And is that technology and visibility. 176 00:10:08,960 --> 00:10:12,720 Speaker 1: And you know, and again you know the so are 177 00:10:12,760 --> 00:10:16,800 Speaker 1: any of your customers. Is their freight stuck anywhere, you know, 178 00:10:17,040 --> 00:10:20,440 Speaker 1: at an airport and the Middle East somewhere or an 179 00:10:20,440 --> 00:10:21,080 Speaker 1: ocean port. 180 00:10:21,440 --> 00:10:24,360 Speaker 2: Yes, right now, we're dealing with that as we speak 181 00:10:24,760 --> 00:10:29,560 Speaker 2: where coming out of the Middle East, freight has not moved, 182 00:10:29,559 --> 00:10:32,959 Speaker 2: none of the containers have moved because obviously safety is 183 00:10:33,000 --> 00:10:37,680 Speaker 2: a key issue. So again MSc Marisk and the other 184 00:10:38,960 --> 00:10:42,760 Speaker 2: ocean carriers have stopped sailings at least coming out of 185 00:10:42,800 --> 00:10:46,480 Speaker 2: the Middle East. Now they're taking different routes if they're 186 00:10:46,520 --> 00:10:49,840 Speaker 2: already on the water, but as far as getting out 187 00:10:49,880 --> 00:10:52,520 Speaker 2: of the port, those have all stopped for now because 188 00:10:52,559 --> 00:10:54,480 Speaker 2: of the heightened security. 189 00:10:54,120 --> 00:10:58,160 Speaker 1: Rooms, gotcha, And is the you know, obviously we've seen 190 00:10:58,240 --> 00:11:02,960 Speaker 1: some huge increases in rates, especially the tanker rates, but 191 00:11:03,080 --> 00:11:07,760 Speaker 1: like you know, the container liner rates have been you know, 192 00:11:08,360 --> 00:11:10,839 Speaker 1: continuously to go down this you know, and our view 193 00:11:10,880 --> 00:11:13,040 Speaker 1: is going to provide some support level for that and 194 00:11:13,080 --> 00:11:16,880 Speaker 1: air freight rate should you know inch higher. Is that 195 00:11:17,480 --> 00:11:20,160 Speaker 1: good for Jarrett? It might be bad for customers, But 196 00:11:20,240 --> 00:11:22,760 Speaker 1: is it good for Jarrett? Because it's it's you're getting 197 00:11:22,840 --> 00:11:24,320 Speaker 1: higher rates. 198 00:11:24,360 --> 00:11:27,040 Speaker 2: Not necessarily it's not necessarily good for us. It's obviously 199 00:11:27,080 --> 00:11:30,960 Speaker 2: not good for our customers. It's it's more anticipating what 200 00:11:31,000 --> 00:11:34,240 Speaker 2: those surch chargers are going to be. Again, the ocean 201 00:11:34,240 --> 00:11:41,160 Speaker 2: carriers have already tagged containers with safety fee that they're 202 00:11:41,200 --> 00:11:45,600 Speaker 2: applying to each container. So I think we just have 203 00:11:45,679 --> 00:11:48,120 Speaker 2: to be able to forecast for our customers what those 204 00:11:48,240 --> 00:11:51,280 Speaker 2: additional chargers are going to look like. Rates obviously going 205 00:11:51,320 --> 00:11:53,880 Speaker 2: to go out they always do in these kind of situations. 206 00:11:54,200 --> 00:11:56,440 Speaker 2: Now it's not good for our customers, it's not good 207 00:11:56,440 --> 00:11:59,120 Speaker 2: for us. I think it's it's one of those things 208 00:11:59,160 --> 00:12:04,440 Speaker 2: where it's a temper increase in charges to compensate the 209 00:12:04,480 --> 00:12:08,640 Speaker 2: ocean carriers for the safety, the security, and the extra 210 00:12:08,760 --> 00:12:12,640 Speaker 2: expense that's incurred with handling these things at this time. 211 00:12:13,000 --> 00:12:15,080 Speaker 1: And so if we could shift gears and talk about 212 00:12:15,080 --> 00:12:21,080 Speaker 1: the brokerage industry, Obviously a big thing going on in 213 00:12:21,200 --> 00:12:24,640 Speaker 1: brokerage is you know, leveraging technology. You have some of 214 00:12:24,679 --> 00:12:29,480 Speaker 1: the larger players like H. Robinson chatting their AI and 215 00:12:29,720 --> 00:12:32,280 Speaker 1: you know, others talking about you know, how they're using 216 00:12:32,320 --> 00:12:36,440 Speaker 1: technology to better price or route optimization. How are you 217 00:12:36,480 --> 00:12:39,360 Speaker 1: guys leveraging technology? Are you building it in house? Are 218 00:12:39,400 --> 00:12:41,960 Speaker 1: you buying things off the shelf? If you can just 219 00:12:42,000 --> 00:12:43,880 Speaker 1: talk about talk about that a little bit. 220 00:12:44,120 --> 00:12:48,480 Speaker 2: Yeah, we're building in a house and we use AI 221 00:12:48,640 --> 00:12:55,880 Speaker 2: extensively for what I'll call background type, behind the scenes activities. 222 00:12:56,960 --> 00:13:01,199 Speaker 2: We're just not going to put an AI bought between 223 00:13:01,280 --> 00:13:04,280 Speaker 2: us and our customers. That's what makes us different in 224 00:13:04,320 --> 00:13:08,160 Speaker 2: the industry as well. We want our customers to be 225 00:13:08,160 --> 00:13:11,600 Speaker 2: able to deal with real people on a real time basis, 226 00:13:12,000 --> 00:13:16,000 Speaker 2: and so we're using AI though extensively within our TMS 227 00:13:16,040 --> 00:13:22,200 Speaker 2: platform with our integrations. We recently partnered with an IT 228 00:13:22,600 --> 00:13:28,960 Speaker 2: firm called one log Tech that created a application along 229 00:13:29,000 --> 00:13:34,120 Speaker 2: with our IT We co created a application called Jarrett 230 00:13:34,120 --> 00:13:39,800 Speaker 2: Link and li NC is an acronym for Logistics Integration 231 00:13:40,559 --> 00:13:46,240 Speaker 2: no Code, and that's a really important part of our 232 00:13:46,280 --> 00:13:50,720 Speaker 2: integration process with our customers and our carriers. We're using 233 00:13:50,760 --> 00:13:55,160 Speaker 2: AI to create the code behind the scenes to integrate 234 00:13:55,240 --> 00:14:02,840 Speaker 2: with ERP systems, with carriers, for tracking, getting pro numbers, 235 00:14:03,559 --> 00:14:05,839 Speaker 2: just a number of things that we're doing with our 236 00:14:05,880 --> 00:14:10,120 Speaker 2: carriers and our customers. We have native integration with Oracle 237 00:14:10,120 --> 00:14:14,280 Speaker 2: Transportation Management, which basically means any of our customers that 238 00:14:14,280 --> 00:14:17,040 Speaker 2: are on OTM, it's plug and play. Same thing with 239 00:14:17,080 --> 00:14:20,480 Speaker 2: any of our customers on net Suite. We've integrated with 240 00:14:20,880 --> 00:14:24,920 Speaker 2: three gtms. All of that is done through Jarrett Length 241 00:14:25,440 --> 00:14:29,560 Speaker 2: and that integration with no code speeds up the integration 242 00:14:29,760 --> 00:14:34,000 Speaker 2: significantly and also reduces the time it takes to integrate 243 00:14:34,040 --> 00:14:37,880 Speaker 2: with your customers. That's a huge advantage for us, right. 244 00:14:38,040 --> 00:14:41,080 Speaker 1: And I just probably speaking you know, because obviously the 245 00:14:41,080 --> 00:14:45,920 Speaker 1: brokerage is your brokerage. You're doing truckload lesson truckload that's. 246 00:14:45,760 --> 00:14:50,520 Speaker 2: Correct, LTL Truckload Expedite International, All Remotest Parcel. 247 00:14:51,680 --> 00:14:55,560 Speaker 1: Gotcha. How is the truckload market from your vantage point? 248 00:14:56,160 --> 00:14:59,160 Speaker 2: Well, I think, as you know and probably everyone that's listening, 249 00:14:59,320 --> 00:15:01,880 Speaker 2: we've been in a r recession for about three years now, 250 00:15:02,280 --> 00:15:05,360 Speaker 2: and so the spot market rates on the truckloads side 251 00:15:05,400 --> 00:15:09,280 Speaker 2: have been down for three consecutive years, the longest time 252 00:15:09,520 --> 00:15:12,520 Speaker 2: in all of my years in the industry. We're starting 253 00:15:12,520 --> 00:15:14,520 Speaker 2: to see the truckle of rates spike back up the 254 00:15:14,560 --> 00:15:19,040 Speaker 2: spot market, and the reason is because of the aggressive 255 00:15:19,160 --> 00:15:23,840 Speaker 2: nature or intentional nature of pulling non downicile CDL drivers 256 00:15:23,840 --> 00:15:29,080 Speaker 2: off the road, shutting down illegal driving schools. We've seen 257 00:15:29,120 --> 00:15:32,560 Speaker 2: that over the last few weeks. There's some estimates that 258 00:15:32,600 --> 00:15:36,080 Speaker 2: it's going to remove upwards to two hundred thousand drivers 259 00:15:36,120 --> 00:15:42,239 Speaker 2: off out of the seats trucks. That in by itself 260 00:15:42,560 --> 00:15:48,160 Speaker 2: will create a capacity squeeze. We don't see the amount 261 00:15:48,160 --> 00:15:50,760 Speaker 2: of freight on the street going up at this time. 262 00:15:51,440 --> 00:15:54,680 Speaker 2: You know, we're still not seeing a significant uptick in 263 00:15:55,360 --> 00:16:00,800 Speaker 2: the purchase of say home goods, appliances, furniture or other things. 264 00:16:00,800 --> 00:16:03,720 Speaker 2: We're not seeing an uptick in housing starts, which is 265 00:16:03,760 --> 00:16:08,239 Speaker 2: a key driver in the movement of construction, lumber, building materials. 266 00:16:08,280 --> 00:16:12,040 Speaker 2: We haven't seen that yet. That usually is the is 267 00:16:12,080 --> 00:16:16,240 Speaker 2: the trigger for a spike in spot market rates. We 268 00:16:16,280 --> 00:16:18,760 Speaker 2: are seeing a spike in spot market rates because of 269 00:16:18,800 --> 00:16:21,720 Speaker 2: the number of drivers being pulled off the road. It's 270 00:16:21,760 --> 00:16:25,720 Speaker 2: really an interesting dynamic that's occurring right now. It's we're 271 00:16:25,760 --> 00:16:29,920 Speaker 2: taking equipment off the road, which means there's less capacity, 272 00:16:30,000 --> 00:16:32,280 Speaker 2: which drives up the rates. 273 00:16:32,120 --> 00:16:35,120 Speaker 1: Right right And the fact that you know, as long 274 00:16:35,160 --> 00:16:39,040 Speaker 1: as the Middle East conflict happens is happening. You know, 275 00:16:39,080 --> 00:16:41,560 Speaker 1: oil prices will remain high, and that means people have 276 00:16:41,640 --> 00:16:44,840 Speaker 1: less to spend because they're spending more at the pump, 277 00:16:44,960 --> 00:16:50,440 Speaker 1: So that could be a negative for freight demand going forward. 278 00:16:50,760 --> 00:16:54,400 Speaker 1: I think you know you talked about capacity coming out 279 00:16:54,400 --> 00:16:57,040 Speaker 1: of the market as a broker. Was any of your 280 00:16:57,120 --> 00:17:01,360 Speaker 1: capacity impacted or have you do? You guys have always 281 00:17:01,360 --> 00:17:04,240 Speaker 1: avoided non domicile drivers for the most part. 282 00:17:04,600 --> 00:17:09,480 Speaker 2: We've absolutely avoided them. We all know that fraud and 283 00:17:09,600 --> 00:17:12,280 Speaker 2: theft is a major issue right now in the truckload space. 284 00:17:13,680 --> 00:17:16,520 Speaker 2: We do a full vetting process with all of our 285 00:17:16,600 --> 00:17:21,800 Speaker 2: carriers and so it has not impacted us, so we're 286 00:17:22,800 --> 00:17:24,800 Speaker 2: thankful for that. I think it goes back to the 287 00:17:24,800 --> 00:17:26,760 Speaker 2: process we use for vetting carriers. 288 00:17:27,840 --> 00:17:29,960 Speaker 1: Is your capacity that you use anywhere from an owner 289 00:17:30,000 --> 00:17:33,080 Speaker 1: operator to mid size to largeized fleets? 290 00:17:33,520 --> 00:17:37,320 Speaker 2: Absolutely well. You know we have our best service and 291 00:17:37,600 --> 00:17:41,119 Speaker 2: best pricing from the smaller carriers, which are usually the 292 00:17:41,640 --> 00:17:43,720 Speaker 2: carriers that have ten trucks or less than their fleet. 293 00:17:44,119 --> 00:17:46,880 Speaker 2: We have great relationships with thousands of carriers that are 294 00:17:46,880 --> 00:17:49,520 Speaker 2: in that size, and of course we'll go up to 295 00:17:49,560 --> 00:17:51,840 Speaker 2: the mid sized carrier. You know that one hundred and 296 00:17:51,840 --> 00:17:54,720 Speaker 2: two hundred truck fleet. Those those are the type of 297 00:17:54,720 --> 00:17:57,639 Speaker 2: carriers we like to work with. They're stable, they've been 298 00:17:57,680 --> 00:18:01,760 Speaker 2: in business for a long time, their motor carrier authority 299 00:18:01,920 --> 00:18:06,000 Speaker 2: is satisfactory. You know, those are the types of carriers 300 00:18:06,000 --> 00:18:06,760 Speaker 2: that we work with. 301 00:18:06,960 --> 00:18:10,159 Speaker 1: And you know, when you're when you're vetting carriers and 302 00:18:10,200 --> 00:18:14,040 Speaker 1: trying to protect against fraud are and obviously you're leveraging 303 00:18:14,080 --> 00:18:16,920 Speaker 1: technology to do that. It's that stuff you're building in house. 304 00:18:17,040 --> 00:18:18,919 Speaker 1: Do you do you use like a third party like 305 00:18:18,920 --> 00:18:19,480 Speaker 1: a highway. 306 00:18:19,760 --> 00:18:25,640 Speaker 2: Absolutely, use third parties like highway, my carrier, Packet, verified Carrier. 307 00:18:26,640 --> 00:18:30,040 Speaker 2: Those are the three main moans that we're using and 308 00:18:30,280 --> 00:18:33,000 Speaker 2: all three of them we feel really good about. We've 309 00:18:33,040 --> 00:18:34,320 Speaker 2: integrated with them as well. 310 00:18:35,840 --> 00:18:38,160 Speaker 1: And so just you know, we talked about the truckload 311 00:18:38,200 --> 00:18:40,679 Speaker 1: but you know, the lesson truckload market, that's been a 312 00:18:40,680 --> 00:18:43,600 Speaker 1: pretty tough market as well. On the demand side, we've 313 00:18:43,600 --> 00:18:46,080 Speaker 1: had some good news, at least from my vantage point. 314 00:18:46,119 --> 00:18:49,240 Speaker 1: You know, the ism was an expansion territory over the 315 00:18:49,320 --> 00:18:52,639 Speaker 1: last two months, which is you know, a net positive. 316 00:18:53,240 --> 00:18:57,359 Speaker 1: What are your customers telling you about LTL demand or 317 00:18:57,400 --> 00:18:59,520 Speaker 1: what are you seeing in the LTL market right now? 318 00:19:00,080 --> 00:19:04,960 Speaker 2: It's been flat. It's consistent with the truckload space. The 319 00:19:05,040 --> 00:19:09,439 Speaker 2: difference on the LTL the rates continued to increase at 320 00:19:09,480 --> 00:19:12,400 Speaker 2: a lower clip than what they have in the last 321 00:19:12,760 --> 00:19:16,480 Speaker 2: twelve to twenty four months. We're still seeing increases more 322 00:19:16,480 --> 00:19:18,680 Speaker 2: in the two to four percent range on the LTL 323 00:19:18,800 --> 00:19:22,119 Speaker 2: market as opposed to four to six or six to 324 00:19:22,200 --> 00:19:25,200 Speaker 2: eight percent. You know, when Yellow went out, it was 325 00:19:25,240 --> 00:19:29,639 Speaker 2: a five billion dollar bankruptcy. It was a significant amount 326 00:19:29,720 --> 00:19:32,679 Speaker 2: of freight that got pushed out amongst all of the 327 00:19:32,720 --> 00:19:37,440 Speaker 2: other carriers that gave them leverage on pricing. That now 328 00:19:37,560 --> 00:19:39,920 Speaker 2: is all dissipated. Obviously, that was a couple of years ago. 329 00:19:40,960 --> 00:19:45,480 Speaker 2: So now what we're seeing is LTL carriers still pushing increases, 330 00:19:45,520 --> 00:19:49,160 Speaker 2: but at a much smaller percentage than they were before, 331 00:19:50,160 --> 00:19:53,160 Speaker 2: mainly because of the freight recession. 332 00:19:53,480 --> 00:19:53,800 Speaker 1: You know. 333 00:19:54,480 --> 00:19:57,240 Speaker 2: LTL is, as you know, lee is a totally different 334 00:19:57,280 --> 00:20:00,560 Speaker 2: animal than truck lad There's five hundred thousand truck carriers 335 00:20:00,560 --> 00:20:03,719 Speaker 2: out there, the vast majority of them have less than 336 00:20:03,760 --> 00:20:08,040 Speaker 2: twenty trucks in their fleet. There's roughly about forty LTL carriers, 337 00:20:08,359 --> 00:20:13,520 Speaker 2: and so it's a you know, much more concentrated market, 338 00:20:13,960 --> 00:20:18,600 Speaker 2: and so those LTL carriers the infrastructure to enter an 339 00:20:18,720 --> 00:20:25,840 Speaker 2: LTL space is with the LTL terminals and the other 340 00:20:26,480 --> 00:20:31,879 Speaker 2: capital assets required. So that makes the LTL space more 341 00:20:31,960 --> 00:20:36,440 Speaker 2: price consistent market versus the truck loan space. So that's 342 00:20:36,480 --> 00:20:40,639 Speaker 2: why we're seeing smaller increases from the LTL carriers. But 343 00:20:40,680 --> 00:20:42,720 Speaker 2: I think as soon as we see an uptick in 344 00:20:42,760 --> 00:20:45,000 Speaker 2: the amount of freight out in the market, you're going 345 00:20:45,080 --> 00:20:46,840 Speaker 2: to see those LTL rates go back up. 346 00:20:47,000 --> 00:20:50,480 Speaker 1: And so you know, you you mentioned Yellow's bankruptcy just 347 00:20:50,560 --> 00:20:53,040 Speaker 1: I guess a personal question for you was that was 348 00:20:53,040 --> 00:20:55,719 Speaker 1: that very upsetting given that you started your career Roadway, 349 00:20:55,760 --> 00:20:58,000 Speaker 1: which became you know, merged with Yellow. 350 00:20:58,840 --> 00:21:00,920 Speaker 2: But don't get me started on that, but I will 351 00:21:00,960 --> 00:21:02,320 Speaker 2: have I do have my opinion. 352 00:21:02,000 --> 00:21:04,080 Speaker 1: That wasn't a very good That wasn't a very good deal. 353 00:21:05,280 --> 00:21:08,480 Speaker 2: Well, on a personal note, I you know, since I 354 00:21:08,520 --> 00:21:12,920 Speaker 2: started with Roadway and cut my teeth with them, I 355 00:21:12,920 --> 00:21:15,439 Speaker 2: I bled, uh, you know, orange and purple. And so 356 00:21:15,560 --> 00:21:19,600 Speaker 2: when Yellow bought Roadway, a lot of US Roadway folks. 357 00:21:20,000 --> 00:21:22,760 Speaker 2: Of course, that happened many years after I had had 358 00:21:23,400 --> 00:21:26,919 Speaker 2: started Jarrett, but we weren't happy about it, you know, 359 00:21:27,160 --> 00:21:30,600 Speaker 2: they were we between Yellow Roadway and Consolidated freightways. We 360 00:21:30,640 --> 00:21:32,919 Speaker 2: didn't get along very well, and so when one of 361 00:21:32,960 --> 00:21:36,760 Speaker 2: our major competitors bought us, we weren't happy. But you know, 362 00:21:36,880 --> 00:21:39,560 Speaker 2: Yellow's demise started back when they bought Roadway. They paid 363 00:21:39,560 --> 00:21:41,680 Speaker 2: too much for a roadway, and then they bought Holland, 364 00:21:41,720 --> 00:21:43,560 Speaker 2: if you remember, and they paid too much for them 365 00:21:43,920 --> 00:21:47,680 Speaker 2: and their debt, their debt service just crushed the balance sheet. 366 00:21:49,720 --> 00:21:52,280 Speaker 1: So I guess they operated separate networks, which to me 367 00:21:52,520 --> 00:21:56,040 Speaker 1: was always like, yeah, they. 368 00:21:55,920 --> 00:22:00,600 Speaker 2: Couldn't integrate the networks. It was just it was just 369 00:22:00,800 --> 00:22:03,720 Speaker 2: they were they were like the cat with nine lives. 370 00:22:03,720 --> 00:22:06,560 Speaker 2: They kept coming up with financing at the last minute 371 00:22:06,600 --> 00:22:08,680 Speaker 2: to stay in business. I think at the end of 372 00:22:08,720 --> 00:22:11,600 Speaker 2: the day, the teamsters just could not deal with it 373 00:22:11,600 --> 00:22:16,639 Speaker 2: any longer. And I think, you know, they they eventually 374 00:22:16,640 --> 00:22:21,439 Speaker 2: could not appease the union workforce, and that's that's but 375 00:22:21,520 --> 00:22:24,760 Speaker 2: it was a lot of stumbles and major mistakes along 376 00:22:24,800 --> 00:22:27,800 Speaker 2: the way by the leadership team there. It's really unfortunate 377 00:22:28,400 --> 00:22:31,080 Speaker 2: because that you know, in the eighties when I joined Roadway, 378 00:22:31,560 --> 00:22:34,480 Speaker 2: Roadway was like old Dominion is now. They were the 379 00:22:34,600 --> 00:22:39,160 Speaker 2: number one carrier in the market. They had no debt, 380 00:22:38,200 --> 00:22:41,879 Speaker 2: they they ran a tight ship, and you know it 381 00:22:41,920 --> 00:22:45,480 Speaker 2: was it was quite the honor to go through roadways 382 00:22:45,560 --> 00:22:48,200 Speaker 2: management training program which I did. That was a big 383 00:22:48,240 --> 00:22:51,080 Speaker 2: deal back in the eighties, so it was hard to 384 00:22:51,080 --> 00:22:56,919 Speaker 2: see that happen. I think that, Yeah, I think at 385 00:22:56,960 --> 00:22:58,600 Speaker 2: the end of the day, I think what I learned 386 00:22:58,600 --> 00:23:01,399 Speaker 2: from that is you got to have a strong balance sheet. 387 00:23:01,800 --> 00:23:04,880 Speaker 2: As I mentioned earlier on this conversation, we're debt free 388 00:23:04,920 --> 00:23:07,960 Speaker 2: for a reason. We you know, you can grow at 389 00:23:07,960 --> 00:23:11,840 Speaker 2: a very fast clip by reinvesting back into the company 390 00:23:12,440 --> 00:23:14,760 Speaker 2: without having to take on massive amounts of debt. 391 00:23:15,040 --> 00:23:16,480 Speaker 1: And so you know, we didn't talk about all the 392 00:23:16,560 --> 00:23:19,000 Speaker 1: verticals yet, but you know, let's talk about growth. Out 393 00:23:19,000 --> 00:23:21,040 Speaker 1: of all the verticals that you have, what is the 394 00:23:21,119 --> 00:23:22,640 Speaker 1: fastest growing for Jarrett. 395 00:23:23,720 --> 00:23:27,040 Speaker 2: Our fastest growing is our three pl division, our logistics division, 396 00:23:27,560 --> 00:23:30,960 Speaker 2: and that's managed transportation. That's our bread and butter. 397 00:23:32,000 --> 00:23:34,080 Speaker 1: We managed to can you can you just can you 398 00:23:34,160 --> 00:23:36,840 Speaker 1: tell the listeners what exactly is managed transportation? 399 00:23:37,000 --> 00:23:41,640 Speaker 2: Yes? Absolutely, it's it's managing LTL and truckload through an 400 00:23:41,720 --> 00:23:50,679 Speaker 2: integrated technology based TMS platform and layman's terms. We do 401 00:23:50,760 --> 00:23:53,720 Speaker 2: this differently and better than anyone else. We plug into 402 00:23:53,800 --> 00:23:58,760 Speaker 2: our customer's ERP literally plug in through our integration with 403 00:23:58,880 --> 00:24:02,920 Speaker 2: our TMS and our technology, and we manage the flow 404 00:24:02,960 --> 00:24:06,639 Speaker 2: of LTL and truckload through our TMS back into our 405 00:24:06,640 --> 00:24:10,960 Speaker 2: customer's ERP. So we essentially as opposed to a transactional 406 00:24:11,000 --> 00:24:15,360 Speaker 2: relationship like in a traditional truckload brokerage environment that's where 407 00:24:15,400 --> 00:24:19,200 Speaker 2: you're managing truckload by truckload for the customer, we're actually 408 00:24:19,240 --> 00:24:23,159 Speaker 2: managing all of the customer's supply chain, all their all 409 00:24:23,200 --> 00:24:27,360 Speaker 2: their truckload, their expedite, their international through our TMS. By 410 00:24:27,440 --> 00:24:32,120 Speaker 2: plugging into the customer's ERP. That's a different level of service, 411 00:24:32,320 --> 00:24:36,000 Speaker 2: and that's a different level of integration and execution of 412 00:24:36,080 --> 00:24:39,760 Speaker 2: the customer's supply chain. That's by far our fastest growing 413 00:24:39,920 --> 00:24:43,840 Speaker 2: space within Jarrett is the managed transportation portion of our business. 414 00:24:44,359 --> 00:24:47,520 Speaker 2: We can do transactional truckload brokerage all day long, and 415 00:24:47,560 --> 00:24:50,879 Speaker 2: we can do transactional LTL all day long, but that's 416 00:24:50,960 --> 00:24:53,560 Speaker 2: not where the biggest value is. Our biggest bang for 417 00:24:53,600 --> 00:24:56,639 Speaker 2: your bucket is with us. The biggest value that we 418 00:24:56,680 --> 00:25:00,320 Speaker 2: bring to our customers is plugging into your ERP and 419 00:25:00,400 --> 00:25:03,639 Speaker 2: managing the entire supply chain through our TMS. 420 00:25:04,040 --> 00:25:06,919 Speaker 1: And for folks that aren't familiar with what an ERP is, 421 00:25:07,000 --> 00:25:08,239 Speaker 1: Can you explain what that is? 422 00:25:08,560 --> 00:25:13,320 Speaker 2: Yeah, most common rps out there are Oracle SAP net suite, 423 00:25:13,880 --> 00:25:19,200 Speaker 2: those types of ERP systems that usually runs a customers 424 00:25:21,280 --> 00:25:26,080 Speaker 2: order fulfillment process, their customer service process. And then you 425 00:25:26,119 --> 00:25:30,639 Speaker 2: can also bolt on a TMS platform like an OTM, 426 00:25:30,880 --> 00:25:35,200 Speaker 2: Oracle Transportation Management or a three GTMS as an example. 427 00:25:36,359 --> 00:25:39,840 Speaker 1: So, are you like the outsourced transportation department for your 428 00:25:39,920 --> 00:25:45,480 Speaker 1: companies or are you like almost like another employee but 429 00:25:45,640 --> 00:25:47,640 Speaker 1: outside of the of the company. 430 00:25:47,840 --> 00:25:52,200 Speaker 2: Now it's outsourced model, but it's partnership model. So we 431 00:25:52,280 --> 00:25:57,000 Speaker 2: partner with the customer and once we again plug into 432 00:25:57,040 --> 00:26:00,880 Speaker 2: the their ERPs, we're managing their supply chain for them. 433 00:26:01,840 --> 00:26:05,760 Speaker 2: That allows them to not make the investments into technology, 434 00:26:06,000 --> 00:26:11,240 Speaker 2: particularly a TMS platform. Since our TMS is integrated with 435 00:26:11,320 --> 00:26:15,720 Speaker 2: their ERP, that allows them to focus on other areas 436 00:26:15,800 --> 00:26:18,119 Speaker 2: of their business as opposed to trying to build up 437 00:26:18,119 --> 00:26:22,280 Speaker 2: a transportation team. Again, so we partner with our customers 438 00:26:22,320 --> 00:26:24,440 Speaker 2: through this manu's transportation process. 439 00:26:25,920 --> 00:26:28,119 Speaker 1: And can you just talk about some of the I 440 00:26:28,160 --> 00:26:29,720 Speaker 1: don't know if you can name names of what kind 441 00:26:29,760 --> 00:26:32,280 Speaker 1: of companies or what kind of industries. Do you do 442 00:26:32,400 --> 00:26:34,199 Speaker 1: this managed transportation. 443 00:26:33,680 --> 00:26:36,520 Speaker 2: For well, yeah, as I mentioned quite a few fortune 444 00:26:36,520 --> 00:26:40,240 Speaker 2: five hundred sized companies, multi billion dollar companies. They're in 445 00:26:41,640 --> 00:26:48,240 Speaker 2: food and beverage, consumer packaged goods, the chemical, the automotive space, 446 00:26:49,119 --> 00:26:53,520 Speaker 2: the industrial space. You know, we've found a number of 447 00:26:53,520 --> 00:26:57,959 Speaker 2: customers that are in the wire and industrial space that 448 00:26:58,240 --> 00:27:04,840 Speaker 2: are you know, really growing like crazy because of the 449 00:27:04,840 --> 00:27:08,120 Speaker 2: the data centers that are being built across the country 450 00:27:08,160 --> 00:27:11,840 Speaker 2: for the supporting area. You know, that's a cutting edge 451 00:27:11,880 --> 00:27:15,800 Speaker 2: technology that we've been fortunate to have customers in that space. 452 00:27:15,880 --> 00:27:21,879 Speaker 2: So very very broad basic customers that go across the 453 00:27:21,920 --> 00:27:27,000 Speaker 2: in we've got retail customers that again our market leaders, 454 00:27:27,240 --> 00:27:31,399 Speaker 2: iconic brands and their and their markets that have been 455 00:27:31,400 --> 00:27:34,439 Speaker 2: around for many, many years. So very broad based of 456 00:27:34,480 --> 00:27:40,439 Speaker 2: customers both large and small that service multiple verticals. 457 00:27:40,720 --> 00:27:43,320 Speaker 1: And you mentioned fleet services is one of your businesses, 458 00:27:43,359 --> 00:27:47,920 Speaker 1: so so you you maintained trucks for people. We do. 459 00:27:48,080 --> 00:27:51,680 Speaker 2: That means yes, that is that's one of our verticals. 460 00:27:51,720 --> 00:27:55,120 Speaker 2: It's our smallest vertical, but it is an interesting one 461 00:27:55,200 --> 00:27:59,520 Speaker 2: for sure. My entrepreneurial spirit, I guess I got the 462 00:27:59,560 --> 00:28:02,080 Speaker 2: best of many years ago, had the opportunity to buy 463 00:28:02,800 --> 00:28:08,400 Speaker 2: a couple of maintenance and repair for truck and trailer facilities, 464 00:28:09,280 --> 00:28:13,639 Speaker 2: and we now have two locations here Northeast Ohio that 465 00:28:13,880 --> 00:28:17,679 Speaker 2: repair trucks and trailers, and one of the locations is 466 00:28:17,720 --> 00:28:21,520 Speaker 2: in Seville, Ohio, which we actually bought the old Schneider 467 00:28:21,600 --> 00:28:25,280 Speaker 2: National Terminal in Seville. It was a fifty three acre 468 00:28:26,040 --> 00:28:31,600 Speaker 2: facility and it's a beautiful facility and we service a 469 00:28:31,640 --> 00:28:33,720 Speaker 2: lot of trucks and trailers out of that location. And 470 00:28:33,760 --> 00:28:35,800 Speaker 2: then our other facilities in Kent, Ohio. 471 00:28:36,240 --> 00:28:38,600 Speaker 1: Is the old Schneider one still yellow or still orange? 472 00:28:39,120 --> 00:28:43,680 Speaker 2: We changed the color scheme to Jarrett red, but there 473 00:28:43,720 --> 00:28:46,040 Speaker 2: was a lot of painting that needed to be done 474 00:28:48,440 --> 00:28:50,880 Speaker 2: that was interesting. So Schneider actually it was a buy 475 00:28:51,040 --> 00:28:54,360 Speaker 2: lease bag. We bought the fifty three acre parcel in 476 00:28:54,440 --> 00:28:58,080 Speaker 2: the buildings and then we leased back six acres to Schneider, 477 00:28:58,200 --> 00:29:01,760 Speaker 2: so they actually leave six acres from us for parking 478 00:29:03,320 --> 00:29:05,280 Speaker 2: and they're a very good, very good customer of ours 479 00:29:05,280 --> 00:29:05,640 Speaker 2: as well. 480 00:29:06,480 --> 00:29:10,880 Speaker 1: Well, that's good. I'm glad to hear in your warehousing business. 481 00:29:11,120 --> 00:29:14,239 Speaker 1: So are you doing fulfillment or is it kind of 482 00:29:14,320 --> 00:29:17,520 Speaker 1: just crossed like what services do you do in warehousing? 483 00:29:17,920 --> 00:29:21,440 Speaker 2: Yeah, it's omni channel e commerce is the big driver 484 00:29:21,680 --> 00:29:26,480 Speaker 2: for us in our warehouse the warehouses as well as fulfillment. 485 00:29:26,800 --> 00:29:31,440 Speaker 2: So a large group of customers from small up to 486 00:29:31,640 --> 00:29:36,600 Speaker 2: very large companies that they're essentially outsourcing the e commerce 487 00:29:36,640 --> 00:29:40,640 Speaker 2: and order fulfillment and warehousing pallet in palette out processes. 488 00:29:41,480 --> 00:29:43,960 Speaker 2: Like I said, we just got done building a four 489 00:29:44,040 --> 00:29:47,320 Speaker 2: hundred and eight thousand square foot warehouse and just moved 490 00:29:47,320 --> 00:29:49,600 Speaker 2: in a couple of weeks ago. That's because we were 491 00:29:49,640 --> 00:29:51,880 Speaker 2: busting at the seams that are other warehouses here in 492 00:29:51,880 --> 00:29:56,080 Speaker 2: Northeast Ohio. It's a very fast growing market for us. 493 00:29:57,200 --> 00:30:01,000 Speaker 2: What's really awesome about the warehouse side of our business 494 00:30:02,080 --> 00:30:05,720 Speaker 2: is we have a number of customers that will utilize 495 00:30:05,800 --> 00:30:10,040 Speaker 2: us for order fulfillment and e commerce services in our warehouses, 496 00:30:10,160 --> 00:30:13,080 Speaker 2: and then they'll also then integrate with us to do 497 00:30:13,200 --> 00:30:20,560 Speaker 2: full transportation management for them managed services. And so what 498 00:30:20,560 --> 00:30:25,400 Speaker 2: it does is it allows us to provide distribution points 499 00:30:25,400 --> 00:30:29,640 Speaker 2: to our customers that they ordinarily would not have. For example, 500 00:30:29,680 --> 00:30:31,840 Speaker 2: we've had a number of customers when we opened our 501 00:30:31,880 --> 00:30:36,080 Speaker 2: warehouse in Salt Lake City for West Coast Distribution, to 502 00:30:36,080 --> 00:30:40,600 Speaker 2: move inventory to our facility there in Salt Lake. It 503 00:30:40,640 --> 00:30:43,600 Speaker 2: allows for West Coast distribution to the eleven Western states 504 00:30:43,600 --> 00:30:46,719 Speaker 2: at a much lower cost, much lower price point for 505 00:30:46,760 --> 00:30:50,440 Speaker 2: our customers and gets that one to two day service. 506 00:30:50,920 --> 00:30:52,840 Speaker 2: You can get one to two day service from Salt 507 00:30:52,920 --> 00:30:56,640 Speaker 2: Lake City to all eleven Western states. And you know, 508 00:30:57,080 --> 00:31:01,000 Speaker 2: back in the day, California it was the place to be, 509 00:31:01,120 --> 00:31:05,880 Speaker 2: particularly long Beach for West Coast distribution. It's become more 510 00:31:05,920 --> 00:31:11,200 Speaker 2: difficult to operate in California, so that shifted east into Reno, Nevada. 511 00:31:11,360 --> 00:31:14,120 Speaker 2: So Reno, Nevada became the place to be for warehousing 512 00:31:14,120 --> 00:31:17,280 Speaker 2: and distribution. Well, the new place to be in the 513 00:31:17,320 --> 00:31:21,440 Speaker 2: West Coast is Salt Lake. It's awesome. The infrastructure they 514 00:31:21,520 --> 00:31:24,840 Speaker 2: built for transportation and rail in salt Lake is second 515 00:31:24,840 --> 00:31:28,640 Speaker 2: to none. And we were really excited about putting two 516 00:31:28,680 --> 00:31:30,719 Speaker 2: hundred thousand square feet the warehouse space in salt Lake 517 00:31:30,760 --> 00:31:32,600 Speaker 2: a couple of years ago. It's really helped us grow 518 00:31:32,800 --> 00:31:33,640 Speaker 2: that market a lot. 519 00:31:35,160 --> 00:31:38,440 Speaker 1: And you know, so when you're doing this omni channel 520 00:31:38,800 --> 00:31:43,440 Speaker 1: e commerce stuff, are you actually packing and picking and 521 00:31:43,480 --> 00:31:49,040 Speaker 1: packing and sending it to somebody's doorstep or or you're 522 00:31:49,160 --> 00:31:54,800 Speaker 1: more or less repositioning inventory to someone else's distribution center. 523 00:31:55,760 --> 00:32:00,360 Speaker 2: No, it's primarily the first it's picking orders, case pick 524 00:32:01,000 --> 00:32:04,600 Speaker 2: or eaches. Case pick would be full cases that we 525 00:32:04,640 --> 00:32:09,400 Speaker 2: would ship parcel. Eaches would be pieces of on order. 526 00:32:09,480 --> 00:32:11,800 Speaker 2: They go into a single unit either a box or 527 00:32:11,840 --> 00:32:15,240 Speaker 2: a bag. Seal the bag, steal the box. And then 528 00:32:15,280 --> 00:32:17,880 Speaker 2: if it's a large enough word to go LTL or truckload, 529 00:32:17,880 --> 00:32:22,080 Speaker 2: we're filling out you know, full truckloads of case picks 530 00:32:22,360 --> 00:32:25,320 Speaker 2: or LTL quantity case picks for the customer. 531 00:32:25,640 --> 00:32:29,200 Speaker 1: Then you're injecting that into like a US Postal Service 532 00:32:29,400 --> 00:32:31,560 Speaker 1: or a FedEx or EPs or somebody else. 533 00:32:31,840 --> 00:32:35,240 Speaker 2: Yep, all of the above. That's correct. If it's full. 534 00:32:35,360 --> 00:32:38,320 Speaker 2: If it's full truckload, then we're managing the truckload portion 535 00:32:38,400 --> 00:32:40,480 Speaker 2: for the customer. If it's LTL, we're doing that, we're 536 00:32:40,520 --> 00:32:43,760 Speaker 2: managing the LTL sign. If it's parcel, it's one of 537 00:32:43,760 --> 00:32:46,520 Speaker 2: those three. You know, it's either a faed X, GPS, 538 00:32:46,640 --> 00:32:50,400 Speaker 2: or USPS. And the cool thing about it is we 539 00:32:50,400 --> 00:32:55,440 Speaker 2: we integrated our WMS with our TMS, so the customer 540 00:32:55,560 --> 00:32:58,760 Speaker 2: really gets a lot of advantages in utilizing US for 541 00:32:58,960 --> 00:33:03,640 Speaker 2: their pick, case pick and order fulfillment process because they 542 00:33:03,680 --> 00:33:07,080 Speaker 2: have complete visibility from the time that the order is 543 00:33:07,200 --> 00:33:10,280 Speaker 2: picked to the time that it's shipped from our warehouse, 544 00:33:10,720 --> 00:33:13,000 Speaker 2: and then once it's shipped it moves from our warehouse 545 00:33:13,040 --> 00:33:17,000 Speaker 2: management system automatically into our TMS platform, so they have 546 00:33:17,040 --> 00:33:20,640 Speaker 2: complete visibility of the order in the warehouse. When it's picked, 547 00:33:20,960 --> 00:33:23,000 Speaker 2: we actually have the name of the people who pick 548 00:33:23,040 --> 00:33:27,280 Speaker 2: the order, and then it gets shipped on our carriers, 549 00:33:27,280 --> 00:33:29,920 Speaker 2: so it transfers from our WMS right to our TMUS, 550 00:33:30,800 --> 00:33:33,760 Speaker 2: so the customer has complete visibility end to end. Do 551 00:33:33,840 --> 00:33:37,160 Speaker 2: you guys own any trucking assets. We do. We have 552 00:33:37,200 --> 00:33:41,520 Speaker 2: a fleet of trucks that support the transfer of goods 553 00:33:41,520 --> 00:33:44,240 Speaker 2: in and out of our warehouses. It's a dedicated deep 554 00:33:45,400 --> 00:33:48,240 Speaker 2: and of course the warehouse has been able so we're 555 00:33:48,240 --> 00:33:52,760 Speaker 2: a hybrid model. We're asset based when it comes to 556 00:33:53,040 --> 00:33:56,160 Speaker 2: trucks and warehouses and the non asset base for our 557 00:33:56,680 --> 00:33:59,560 Speaker 2: TMS and our brokerage operations. 558 00:34:00,800 --> 00:34:02,880 Speaker 1: So like, roughly, how many trucks do you have in 559 00:34:03,800 --> 00:34:04,720 Speaker 1: the warehousing business? 560 00:34:04,920 --> 00:34:07,800 Speaker 2: Yeah, we have between ten and fifteen trucks and roughly 561 00:34:07,920 --> 00:34:12,680 Speaker 2: fourte three, so very small, but it supports our warehouse 562 00:34:12,840 --> 00:34:17,080 Speaker 2: operations moving goods in and out of warehouse for our customers, 563 00:34:17,120 --> 00:34:19,520 Speaker 2: mainly through a GIT or dedicated environment. 564 00:34:20,680 --> 00:34:23,680 Speaker 1: You know, you mentioned you made an acquisition for the 565 00:34:23,680 --> 00:34:27,000 Speaker 1: fleet services business. That's kind of how it got started. 566 00:34:27,360 --> 00:34:29,880 Speaker 1: Does Jared have a history of being inquisitive or do 567 00:34:29,920 --> 00:34:32,040 Speaker 1: you guys grow predominantly organically? 568 00:34:32,920 --> 00:34:36,239 Speaker 2: We have grown organically. We have not acquired any three 569 00:34:36,280 --> 00:34:41,040 Speaker 2: pls in our twenty seven years in business. We've looked 570 00:34:41,040 --> 00:34:43,680 Speaker 2: at it, We've had a number of discussions over the years. 571 00:34:44,960 --> 00:34:48,319 Speaker 2: It really comes down to culture. I think culture is 572 00:34:48,320 --> 00:34:51,400 Speaker 2: a key part of who we are as an organization. 573 00:34:52,360 --> 00:34:57,760 Speaker 2: You know, I believe the leadership creates culture. Culture creates 574 00:34:57,800 --> 00:35:02,560 Speaker 2: positive behaviors, and then positive behaviors create positive outcomes, and 575 00:35:03,480 --> 00:35:08,359 Speaker 2: our performance is tied directly to our culture. We are 576 00:35:08,480 --> 00:35:11,600 Speaker 2: really sensitive about that, and so when we've looked at 577 00:35:11,719 --> 00:35:16,080 Speaker 2: other opportunities for acquisition, that's really been the main driver 578 00:35:16,680 --> 00:35:18,960 Speaker 2: is we just didn't feel like there was a good 579 00:35:18,960 --> 00:35:22,640 Speaker 2: culture fit. I guess you could say I have a 580 00:35:22,640 --> 00:35:27,319 Speaker 2: little bit of PTSD from when Roadway was bought by Yellow. Yeah, 581 00:35:28,520 --> 00:35:31,799 Speaker 2: that was not a good culture miss. On paper, it 582 00:35:31,840 --> 00:35:33,799 Speaker 2: looked like it should have worked, but it did not. 583 00:35:34,239 --> 00:35:39,560 Speaker 2: So we are the same way. We protect our culture like. 584 00:35:39,560 --> 00:35:42,720 Speaker 1: No other got ya And you know, do you guys 585 00:35:42,840 --> 00:35:44,080 Speaker 1: touch the railroads at all. 586 00:35:44,520 --> 00:35:47,799 Speaker 2: In your we do a lot of intermodal in our 587 00:35:48,000 --> 00:35:53,439 Speaker 2: truckbet brokerage department. I think it's a it's a great 588 00:35:53,440 --> 00:35:56,400 Speaker 2: way to move full truckload for a lot of reasons. 589 00:35:56,960 --> 00:36:01,640 Speaker 2: Prices obviously number one. I think. I think once you know, 590 00:36:01,680 --> 00:36:04,799 Speaker 2: if this goes through. I know it's currently being evaluated 591 00:36:04,840 --> 00:36:10,600 Speaker 2: by our government officials on the UP Norfolk Southern merger, 592 00:36:11,600 --> 00:36:14,720 Speaker 2: but when that, if that happens, I think that'll open 593 00:36:14,800 --> 00:36:20,120 Speaker 2: up long haul intermodal from East coast with Norfolks assets, 594 00:36:20,160 --> 00:36:24,000 Speaker 2: the West coast with Up's assets. I think it'll really 595 00:36:24,400 --> 00:36:29,239 Speaker 2: explode the long haul intermodal market because if you think 596 00:36:29,239 --> 00:36:33,160 Speaker 2: about the full truckload space, long haul is the toughest 597 00:36:33,480 --> 00:36:37,480 Speaker 2: to fill. It's drivers don't want to be away from 598 00:36:37,480 --> 00:36:40,799 Speaker 2: home that much like they used to be, and it's 599 00:36:40,840 --> 00:36:44,279 Speaker 2: the long haul piece that really is the hard part 600 00:36:44,320 --> 00:36:47,399 Speaker 2: to fill. If if we're able to get the UP 601 00:36:48,000 --> 00:36:52,120 Speaker 2: and Norfolk Southern merger to happen and the transit times still, 602 00:36:52,120 --> 00:36:55,480 Speaker 2: they'll be able to bypass you know, Chicago for example, 603 00:36:55,640 --> 00:36:58,160 Speaker 2: right now, you gotta for intermodal, you got to go 604 00:36:58,160 --> 00:37:01,880 Speaker 2: through Chicago and unload and load. I think that'll shave 605 00:37:02,160 --> 00:37:05,439 Speaker 2: It'll shave two days maybe more off the transit from 606 00:37:05,440 --> 00:37:08,279 Speaker 2: east to west and west to east. I could see 607 00:37:08,280 --> 00:37:11,640 Speaker 2: that as a game changer for the intermodial market. And 608 00:37:11,680 --> 00:37:14,319 Speaker 2: so you're for the deal. I guess yeah, I'm for 609 00:37:14,400 --> 00:37:17,680 Speaker 2: the deal. I think there's all cons to it. Obviously, 610 00:37:17,719 --> 00:37:21,440 Speaker 2: competition is number one. It could drive up the rates, 611 00:37:23,160 --> 00:37:25,279 Speaker 2: but I guess there's room if you compare over the 612 00:37:25,360 --> 00:37:28,840 Speaker 2: road truckload rates going east coast to west coast and 613 00:37:28,920 --> 00:37:32,160 Speaker 2: vice versa compared to what intermodial costs today. 614 00:37:32,920 --> 00:37:37,560 Speaker 1: So you know you've been doing this at Jarrett since 615 00:37:37,640 --> 00:37:40,440 Speaker 1: nineteen ninety nine. What's the toughest decision you had to 616 00:37:40,480 --> 00:37:44,400 Speaker 1: make as a founder, CEO and president. 617 00:37:46,280 --> 00:37:50,600 Speaker 2: Well, those decisions come about every day. I would say, Okay, 618 00:37:51,120 --> 00:37:57,799 Speaker 2: it's usually you know, tough decisions for me are usually involved, 619 00:37:59,320 --> 00:38:01,279 Speaker 2: you know, the direction of the company and how that 620 00:38:01,360 --> 00:38:04,160 Speaker 2: impacts our people. I get out of bed every day 621 00:38:05,200 --> 00:38:07,960 Speaker 2: thinking about how can we make decisions? How can I 622 00:38:08,000 --> 00:38:12,160 Speaker 2: make decisions that impact our people in a professional and 623 00:38:12,239 --> 00:38:17,359 Speaker 2: personal way. Really, if we can provide opportunities for our 624 00:38:17,400 --> 00:38:21,000 Speaker 2: people to grow personally and professionally, I'm happy. And that's 625 00:38:21,080 --> 00:38:23,640 Speaker 2: that's really why I got out of bed every day, 626 00:38:25,040 --> 00:38:28,560 Speaker 2: and I think over the years that reason, my why 627 00:38:28,719 --> 00:38:32,600 Speaker 2: has changed. You know, when I when I first started 628 00:38:32,600 --> 00:38:36,279 Speaker 2: the company, as I said, I started with with no 629 00:38:36,360 --> 00:38:42,280 Speaker 2: employees and no customers, and we bootstrapped the company, which 630 00:38:42,360 --> 00:38:45,520 Speaker 2: basically is another way of saying we, you know, max 631 00:38:45,560 --> 00:38:47,680 Speaker 2: our maxed out our credit cards and got a line 632 00:38:47,680 --> 00:38:50,040 Speaker 2: of credit in our house. So there was a lot 633 00:38:50,040 --> 00:38:56,480 Speaker 2: at stake at getting a groundswell of business revenue going 634 00:38:56,600 --> 00:39:01,640 Speaker 2: to pay the bills. As we have grown and become 635 00:39:01,640 --> 00:39:05,160 Speaker 2: one of the largest hively held and family owned three 636 00:39:05,200 --> 00:39:10,279 Speaker 2: pos in the United States, my why has evolved and 637 00:39:10,360 --> 00:39:13,319 Speaker 2: now you know, over the last number of years, it's 638 00:39:13,560 --> 00:39:16,680 Speaker 2: how do we provide our employees with opportunities to grow 639 00:39:16,719 --> 00:39:20,120 Speaker 2: personally professionally, Because what I learned from how we started 640 00:39:20,120 --> 00:39:23,680 Speaker 2: the company is that when you have dedicated, loyal people, 641 00:39:24,600 --> 00:39:27,399 Speaker 2: they make a difference in your organization like no other. 642 00:39:28,960 --> 00:39:33,000 Speaker 2: It's all about your people. And that's why this company, 643 00:39:33,040 --> 00:39:34,879 Speaker 2: as long as I am on the face of this earth, 644 00:39:34,960 --> 00:39:39,120 Speaker 2: will never ever be sold to a private equity company 645 00:39:39,400 --> 00:39:42,680 Speaker 2: or go public because then the focus is on the 646 00:39:42,680 --> 00:39:47,880 Speaker 2: bottom line, it's not on the people. So my objective 647 00:39:47,960 --> 00:39:51,240 Speaker 2: every daily you know is is how do we provide 648 00:39:51,280 --> 00:39:55,960 Speaker 2: opportunities for our people to grow personally. Professionally personally is 649 00:39:56,080 --> 00:40:00,640 Speaker 2: how do they provide more for their family professionally, how 650 00:40:00,640 --> 00:40:04,359 Speaker 2: do they take on more responsibility? And that's what makes 651 00:40:04,440 --> 00:40:04,960 Speaker 2: us different. 652 00:40:05,400 --> 00:40:09,080 Speaker 1: So you know, you said you don't we would prefer 653 00:40:09,200 --> 00:40:11,640 Speaker 1: not to sell it to private equity or ago public. 654 00:40:11,920 --> 00:40:16,240 Speaker 1: So I'm assuming there's other garrots running around the company. 655 00:40:16,600 --> 00:40:18,760 Speaker 1: There are a lot of family members that are active 656 00:40:18,760 --> 00:40:19,360 Speaker 1: in the company. 657 00:40:19,800 --> 00:40:22,960 Speaker 2: There is which we're really excited about. There's a succession plan. 658 00:40:23,880 --> 00:40:26,320 Speaker 2: So my wife and I have two daughters. They're both 659 00:40:26,320 --> 00:40:30,080 Speaker 2: grown and married. Our oldest daughter had our first child 660 00:40:30,680 --> 00:40:32,000 Speaker 2: about a year and a half ago, so we have 661 00:40:32,000 --> 00:40:34,880 Speaker 2: an eighteen month old grandchild. It's the most amazing thing. 662 00:40:34,680 --> 00:40:36,600 Speaker 1: Ever, congratulations. 663 00:40:36,960 --> 00:40:39,840 Speaker 2: And so her and her husband are involved in the business. 664 00:40:40,680 --> 00:40:43,239 Speaker 2: And then my youngest daughter joined the company about two 665 00:40:43,360 --> 00:40:47,360 Speaker 2: or three years ago. Her husband is not involved in 666 00:40:47,360 --> 00:40:50,320 Speaker 2: the business. So we have three two both our daughters 667 00:40:50,360 --> 00:40:52,759 Speaker 2: are involved in the business and our one son in law. 668 00:40:52,920 --> 00:40:58,440 Speaker 2: So we have a succession plan that we're really excited about. 669 00:40:58,880 --> 00:41:03,359 Speaker 2: Our youngest daughter she runs she's our general counsel. She's 670 00:41:03,480 --> 00:41:07,279 Speaker 2: an attorney by trade and so she has a very 671 00:41:07,320 --> 00:41:11,959 Speaker 2: active role in the company. And our oldest son in law. 672 00:41:12,600 --> 00:41:16,040 Speaker 2: He's our VP of Logistics Operations. He oversees our warehousing 673 00:41:16,400 --> 00:41:20,720 Speaker 2: and our international divisions, so very engaged in the company. 674 00:41:21,040 --> 00:41:24,280 Speaker 1: Well, hopefully the plan will go smoother than the show succession, 675 00:41:25,800 --> 00:41:30,840 Speaker 1: you know, when when the time comes right. So, I 676 00:41:30,840 --> 00:41:33,960 Speaker 1: guess what what is the toughest thing, you know, working 677 00:41:34,239 --> 00:41:36,560 Speaker 1: with your kids and your son in law. 678 00:41:37,480 --> 00:41:41,720 Speaker 2: I think communication is important. So one of the things 679 00:41:41,760 --> 00:41:45,279 Speaker 2: that we do that I think all family owned, large 680 00:41:45,280 --> 00:41:48,720 Speaker 2: family owned companies should do is meet on a regular basis. 681 00:41:48,760 --> 00:41:52,799 Speaker 2: So we meet quarterly. We call them family meetings, and 682 00:41:52,920 --> 00:41:54,839 Speaker 2: we just sit down and we talk about what's going 683 00:41:54,880 --> 00:41:57,919 Speaker 2: on in our company. And it can be a wide 684 00:41:58,000 --> 00:42:02,160 Speaker 2: variety of topics. It can be customers, it can be employees, 685 00:42:02,239 --> 00:42:07,759 Speaker 2: it can be strategy, it can be financial, it can 686 00:42:07,800 --> 00:42:11,319 Speaker 2: be the next investment we're going to make. Those kind 687 00:42:11,320 --> 00:42:15,160 Speaker 2: of things involves capital expenditures. So I think that's the 688 00:42:15,200 --> 00:42:20,480 Speaker 2: most important part is communication with your family. You know, 689 00:42:21,120 --> 00:42:22,920 Speaker 2: someday when I hang it up, which I have no 690 00:42:23,000 --> 00:42:26,359 Speaker 2: plans to hang it up anytime soon, but when I do, 691 00:42:26,640 --> 00:42:31,040 Speaker 2: I want the company to continue with the same culture. 692 00:42:32,120 --> 00:42:35,319 Speaker 2: You know I'm saying, and you know, I believe that 693 00:42:35,520 --> 00:42:42,000 Speaker 2: every company has a fingerprint of its owner. I think 694 00:42:42,160 --> 00:42:47,279 Speaker 2: every owner establishes a culture, a legacy that's different than 695 00:42:47,400 --> 00:42:51,400 Speaker 2: every It's your own fingerprint, and I want that legacy 696 00:42:51,440 --> 00:42:54,839 Speaker 2: to continue on after I step away. And I think 697 00:42:54,840 --> 00:42:58,400 Speaker 2: what we're doing now with our family meetings and discussing 698 00:42:58,440 --> 00:43:01,319 Speaker 2: a wide array of topics plants the seed and lays 699 00:43:01,360 --> 00:43:02,640 Speaker 2: the foundation with that to happen. 700 00:43:03,080 --> 00:43:07,600 Speaker 1: Absolutely listen, Mike, this was a really great conversation. I 701 00:43:07,680 --> 00:43:10,520 Speaker 1: really enjoyed it. Before I let you go, though, I 702 00:43:10,600 --> 00:43:13,400 Speaker 1: usually ask my guests just if they have a favorite 703 00:43:13,400 --> 00:43:17,600 Speaker 1: book about transportation or leadership that's kind of close to 704 00:43:17,640 --> 00:43:20,879 Speaker 1: their heart that you know they would recommend folks to read. 705 00:43:22,000 --> 00:43:27,280 Speaker 2: I'll focus on leadership. I'm a huge fan of leadership books. 706 00:43:27,360 --> 00:43:31,880 Speaker 2: So some of my favorite leadership books I started with 707 00:43:31,920 --> 00:43:36,080 Speaker 2: Simon Sinek, big fan of him. It's his book called 708 00:43:36,120 --> 00:43:39,759 Speaker 2: Start with Why. It's an outstanding book. I'd highly recommend it. 709 00:43:40,640 --> 00:43:43,640 Speaker 2: I'm Good to Great by Jim Collins. I'm a huge 710 00:43:43,680 --> 00:43:47,359 Speaker 2: fan of the philosophy that Jim Collins had and Good 711 00:43:47,400 --> 00:43:50,880 Speaker 2: to Great. I'm a Stephen Covey fan. The Seven habits 712 00:43:50,920 --> 00:43:54,680 Speaker 2: of highly effective people. I would highly recommend that book. 713 00:43:55,360 --> 00:43:58,200 Speaker 2: And then Brene Brown wrote a book called Dare to Lead, 714 00:43:58,719 --> 00:44:02,759 Speaker 2: and I would highly recommend that one as well. She 715 00:44:02,920 --> 00:44:06,960 Speaker 2: really did a nice job explaining how to sit down 716 00:44:07,000 --> 00:44:10,400 Speaker 2: with employees and have tough conversations. And that's where the 717 00:44:10,480 --> 00:44:13,120 Speaker 2: name Dared to Lead came from. So those would be 718 00:44:13,200 --> 00:44:15,040 Speaker 2: my recommendations for leadership books. 719 00:44:16,080 --> 00:44:18,840 Speaker 1: All right, great, listen Mike. Again. I really enjoyed the 720 00:44:18,840 --> 00:44:22,719 Speaker 1: conversation learning more about Jarrett your company. It seems like 721 00:44:23,480 --> 00:44:26,400 Speaker 1: you're still building something really great there. Well, thank you, Lee, 722 00:44:26,480 --> 00:44:28,399 Speaker 1: I sure appreciate it and thanks for having me on. 723 00:44:28,560 --> 00:44:30,200 Speaker 1: And I also want to thank you for tuning in. 724 00:44:30,280 --> 00:44:33,040 Speaker 1: If you liked the episode, please subscribe and leave a review. 725 00:44:33,280 --> 00:44:35,360 Speaker 1: We've lined up a number of great guests for the podcast, 726 00:44:35,360 --> 00:44:40,400 Speaker 1: so please check back to your conversations with C suite executives, shippers, regulators, 727 00:44:40,400 --> 00:44:43,600 Speaker 1: and decision makers within the freight markets. Also, if you 728 00:44:43,600 --> 00:44:46,239 Speaker 1: want to learn more about the freight transportation markets, check 729 00:44:46,280 --> 00:44:48,799 Speaker 1: out our work on the Bloomberg terminal at BIGO and 730 00:44:48,880 --> 00:44:52,240 Speaker 1: on social media. I'd also like to thank our editing team, 731 00:44:52,280 --> 00:44:56,000 Speaker 1: Mariam Trouorr and Adidia some money for their help pulling 732 00:44:56,040 --> 00:44:59,200 Speaker 1: this podcast together. This is Lee Clasco signing off and 733 00:44:59,239 --> 00:45:01,120 Speaker 1: thanks for talking to sports with me. Talk to you 734 00:45:01,160 --> 00:45:03,840 Speaker 1: next week. M m 735 00:45:06,400 --> 00:45:08,240 Speaker 2: Mmmmm