1 00:00:07,760 --> 00:00:10,280 Speaker 1: Hi everyone, this is Lee Klaskow when We're Talking Transports. 2 00:00:10,320 --> 00:00:13,600 Speaker 1: Welcome to Bloomberg Intelligence Talking Transports podcast. I'm your host, 3 00:00:13,720 --> 00:00:18,400 Speaker 1: Lee Claskow, Senior freight, transportation and logistics analysts at Bloomberg Intelligence, 4 00:00:18,720 --> 00:00:21,479 Speaker 1: Bloomberg's in house research arm of almost five hundred analysts 5 00:00:21,520 --> 00:00:24,720 Speaker 1: and strategists around the world. A quick public service announcement 6 00:00:24,760 --> 00:00:27,880 Speaker 1: before we dive in. Your support is instrumental to keep 7 00:00:27,880 --> 00:00:31,600 Speaker 1: bringing great guests and conversations to you, our listeners, and 8 00:00:31,680 --> 00:00:34,640 Speaker 1: we need your support. So please, if you enjoy this podcast, 9 00:00:35,000 --> 00:00:37,800 Speaker 1: share it, like it and leave a comment. Also, if 10 00:00:37,840 --> 00:00:40,760 Speaker 1: you've got ideas, feedback, or just want to talk transports, 11 00:00:40,920 --> 00:00:42,920 Speaker 1: I'm always happy to connect. You can find me on 12 00:00:42,920 --> 00:00:46,239 Speaker 1: the Bloomberg terminal, LinkedIn, or on x at Logistics. Lee 13 00:00:46,920 --> 00:00:50,800 Speaker 1: and I'm very excited to have Jeff Anderman STG Logistics CEO, 14 00:00:50,920 --> 00:00:53,320 Speaker 1: a role who's held since April of last year. Since 15 00:00:53,400 --> 00:00:56,840 Speaker 1: joining STG in twenty sixteen, Jeff has held roles of 16 00:00:56,880 --> 00:01:02,960 Speaker 1: increasing responsibility including CFO, COO and President. Welcome to Talking Transports, Jeff. 17 00:01:02,800 --> 00:01:05,160 Speaker 2: Thank you, thanks for having me. Happy to be here 18 00:01:05,560 --> 00:01:07,120 Speaker 2: so STG. 19 00:01:07,280 --> 00:01:11,000 Speaker 1: Some people might have seen your containers on the rails. 20 00:01:11,319 --> 00:01:14,280 Speaker 1: Could you give a little more detail about what STG does? 21 00:01:14,600 --> 00:01:21,720 Speaker 2: Sure? Yeah, So. STG Logistics is an Acid based intermodal 22 00:01:21,760 --> 00:01:28,720 Speaker 2: transportation and logistics provider. We operate across two business segments. 23 00:01:29,040 --> 00:01:34,120 Speaker 2: One is transportation, the second is logistics, and we provide 24 00:01:34,920 --> 00:01:38,200 Speaker 2: a couple of different services under both of those umbrellas. 25 00:01:38,240 --> 00:01:42,959 Speaker 2: So think about us as providing domestic intermodal sort of 26 00:01:43,000 --> 00:01:47,800 Speaker 2: door to door rail transportation via a fleet of fifteen 27 00:01:48,280 --> 00:01:52,200 Speaker 2: fifty three foot domestic animal containers riding the railroads, the 28 00:01:52,200 --> 00:01:55,120 Speaker 2: Class one railroads here in the US as well as 29 00:01:55,120 --> 00:01:59,320 Speaker 2: in Mexico. And then we provide a drainage service, a 30 00:01:59,360 --> 00:02:04,320 Speaker 2: container's range service, servicing both domestic intermodal containers and also 31 00:02:04,400 --> 00:02:07,560 Speaker 2: moving international containers you know, your typical twenty forty footers 32 00:02:08,760 --> 00:02:12,160 Speaker 2: here in the US as well. We have a over 33 00:02:12,200 --> 00:02:14,519 Speaker 2: the road brokerage service that kind of complements our service 34 00:02:14,560 --> 00:02:17,600 Speaker 2: offerings and in those in those two products that I 35 00:02:17,680 --> 00:02:21,480 Speaker 2: just mentioned. And then we have a large logistics business 36 00:02:22,240 --> 00:02:27,800 Speaker 2: that provides at scale uh sort of transloading container freight 37 00:02:27,840 --> 00:02:32,480 Speaker 2: station services across several million square feet of warehouse based 38 00:02:32,480 --> 00:02:36,720 Speaker 2: typically port centric you know in and around import and 39 00:02:36,720 --> 00:02:40,840 Speaker 2: export ports of entry and and and departure here in 40 00:02:40,880 --> 00:02:42,480 Speaker 2: the United States as well. 41 00:02:42,680 --> 00:02:46,359 Speaker 1: And so you guys are a private company, who who 42 00:02:46,400 --> 00:02:49,880 Speaker 1: are you owned by? I guess? And then you know what, 43 00:02:49,880 --> 00:02:52,560 Speaker 1: what what public companies out there would be your biggest competitor? 44 00:02:52,639 --> 00:02:55,160 Speaker 2: Sure? Sure, so yeah, we are a privately held company. 45 00:02:55,440 --> 00:02:59,280 Speaker 2: H We are owned by a couple of different private 46 00:02:59,320 --> 00:03:03,359 Speaker 2: equity sponsors, win Point Partners, oak To Capital Management and 47 00:03:03,440 --> 00:03:07,480 Speaker 2: Duration Capital Partners. And in terms of you know, sort 48 00:03:07,480 --> 00:03:12,640 Speaker 2: of public competitors, obviously, the the intermotial market is one 49 00:03:13,120 --> 00:03:16,040 Speaker 2: that uh is, there's a number of a sort of 50 00:03:16,120 --> 00:03:20,800 Speaker 2: large public competitors out there, uh JB. Hunt being a 51 00:03:20,880 --> 00:03:25,239 Speaker 2: large one, Heub Group being another, night Swift being another, 52 00:03:25,440 --> 00:03:29,760 Speaker 2: Schneider being another, and your work kind of number four 53 00:03:30,240 --> 00:03:33,639 Speaker 2: in terms of the asset based the size, you know, 54 00:03:33,720 --> 00:03:35,800 Speaker 2: kind of size and scale of our our asset based 55 00:03:35,800 --> 00:03:38,640 Speaker 2: in the motive fleet with with Hunt being the largest 56 00:03:38,680 --> 00:03:42,360 Speaker 2: hub and Schneider kind of the next two behind Hunt. 57 00:03:43,000 --> 00:03:44,640 Speaker 2: And then if you think about, you know, sort of 58 00:03:45,400 --> 00:03:47,920 Speaker 2: the drage business, there aren't a lot of sort of 59 00:03:47,920 --> 00:03:51,680 Speaker 2: publicly traded direct competitors out there. Uh. Forward Air is 60 00:03:51,720 --> 00:03:54,240 Speaker 2: a is a company that runs a large kind of 61 00:03:54,320 --> 00:03:59,160 Speaker 2: drage business uh, Universal Logistics Holdings is another. And then 62 00:03:59,160 --> 00:04:02,000 Speaker 2: in logistics, you know, we're a little bit unique in 63 00:04:02,040 --> 00:04:04,640 Speaker 2: that regard. You know, there's not a ton of swere 64 00:04:05,240 --> 00:04:08,640 Speaker 2: public competitors out there doing uh specifically what we do, 65 00:04:08,680 --> 00:04:10,680 Speaker 2: which is kind of the container freight station service, the 66 00:04:10,720 --> 00:04:14,960 Speaker 2: transloading service. The connective tissue that that sort of unites 67 00:04:15,000 --> 00:04:19,240 Speaker 2: are our intermobile transportation service offerings with with actually handling 68 00:04:19,279 --> 00:04:21,640 Speaker 2: freight on behalf of our customers. There's not not a 69 00:04:21,720 --> 00:04:23,919 Speaker 2: toire of direct competitors out there that are public. 70 00:04:23,960 --> 00:04:26,120 Speaker 1: And on the over the road brokerage business, I'd be 71 00:04:26,120 --> 00:04:27,160 Speaker 1: like a Robin. 72 00:04:27,120 --> 00:04:31,200 Speaker 2: Yeah er Robinson RXO. Folks like that, right, And and 73 00:04:31,279 --> 00:04:34,440 Speaker 2: our brokerage you know, obviously is it's complementary to our 74 00:04:34,440 --> 00:04:37,800 Speaker 2: automobile business, complementing to oorger age business. Certainly not of 75 00:04:37,880 --> 00:04:40,680 Speaker 2: the size and scale of an rx O or H 76 00:04:40,760 --> 00:04:44,360 Speaker 2: Robinson for example, but those are two two good comps 77 00:04:44,400 --> 00:04:44,760 Speaker 2: for sure. 78 00:04:45,040 --> 00:04:47,080 Speaker 1: So before we talk a little bit about more about 79 00:04:47,080 --> 00:04:50,640 Speaker 1: the actual businesses that you guys run, you've had some 80 00:04:52,040 --> 00:04:54,400 Speaker 1: recent news but bankruptcy, if you can kind of talk 81 00:04:54,440 --> 00:04:57,800 Speaker 1: about what what how did you get there and what 82 00:04:57,839 --> 00:04:58,880 Speaker 1: are the plans to get out? 83 00:04:59,160 --> 00:05:02,240 Speaker 2: Yeah? Yeah, So we're in the in the midst right 84 00:05:02,240 --> 00:05:06,840 Speaker 2: now of of executing not a balance sheet structuring through 85 00:05:06,960 --> 00:05:11,640 Speaker 2: a Chapter eleven reorganization process. You know, I think it's 86 00:05:11,680 --> 00:05:13,640 Speaker 2: it's no secret, I guess as we'll probably spend some 87 00:05:13,680 --> 00:05:15,800 Speaker 2: time talking about this here over the course of the 88 00:05:15,839 --> 00:05:17,920 Speaker 2: next forty five minutes to an hour. I mean, it's 89 00:05:17,920 --> 00:05:20,560 Speaker 2: been a pretty challenging freight market for the course of 90 00:05:20,600 --> 00:05:23,880 Speaker 2: the past couple of years. You know, our business was 91 00:05:23,920 --> 00:05:28,680 Speaker 2: originally capitalized by our sponsors during a much different time 92 00:05:29,000 --> 00:05:34,360 Speaker 2: in the freight cycle, right and you know, as a result, obviously, 93 00:05:34,440 --> 00:05:37,040 Speaker 2: you know, you know, the the cycle has been very challenging. 94 00:05:37,160 --> 00:05:39,599 Speaker 2: It's certainly been a much more challenging cycle than I 95 00:05:39,600 --> 00:05:42,960 Speaker 2: think anybody has seen sort of historically in the surface 96 00:05:43,000 --> 00:05:48,680 Speaker 2: transportation markets here in the US. And obviously there's been 97 00:05:48,720 --> 00:05:50,479 Speaker 2: a lot of downward pressure as a role of that 98 00:05:50,560 --> 00:05:52,640 Speaker 2: cycle on what, you know, the rates that customers are 99 00:05:52,680 --> 00:05:55,280 Speaker 2: willing to pay for us to move freight and our 100 00:05:55,279 --> 00:05:58,240 Speaker 2: competitors to move freight, and certainly been a ton of 101 00:05:58,440 --> 00:06:01,120 Speaker 2: cost inflation that's also had been during that course of time, 102 00:06:01,160 --> 00:06:04,480 Speaker 2: which has obviously led to you know, a challenging sort 103 00:06:04,520 --> 00:06:08,960 Speaker 2: of margin, uh profile for folks like us, right, and 104 00:06:09,000 --> 00:06:12,400 Speaker 2: so we we kind of picked our heads up, uh, 105 00:06:12,640 --> 00:06:15,440 Speaker 2: you know, in twenty twenty five and said, hey, you 106 00:06:15,480 --> 00:06:17,800 Speaker 2: know this, UH this we have a we have a 107 00:06:17,800 --> 00:06:21,159 Speaker 2: balance sheet that we think is probably not you know, 108 00:06:21,200 --> 00:06:24,840 Speaker 2: the strength that we need to have uh to sort 109 00:06:24,880 --> 00:06:28,240 Speaker 2: of continue to march forward in a way that's going 110 00:06:28,279 --> 00:06:31,600 Speaker 2: to allow us to continue to service our customers, continue 111 00:06:31,640 --> 00:06:34,760 Speaker 2: to service our vendors, continue to invest in the business 112 00:06:35,680 --> 00:06:37,400 Speaker 2: in a way that is going to be sort of 113 00:06:37,400 --> 00:06:41,279 Speaker 2: sustainable for the long term. So we proactively approached our 114 00:06:41,279 --> 00:06:43,680 Speaker 2: our critical financial stakeholders and said, hey, we want to 115 00:06:43,680 --> 00:06:46,800 Speaker 2: address us right, and we want to be in a 116 00:06:46,800 --> 00:06:49,599 Speaker 2: position where we're going to be really strong for the 117 00:06:49,600 --> 00:06:52,720 Speaker 2: long call for for everybody that we do business with 118 00:06:53,160 --> 00:06:56,440 Speaker 2: UH and engage with in the industry. And uh we 119 00:06:56,440 --> 00:07:00,200 Speaker 2: we uh we basically got to a place where we 120 00:07:00,520 --> 00:07:05,000 Speaker 2: have the support of of all those key financial stakeholders 121 00:07:05,480 --> 00:07:08,080 Speaker 2: UH to kind of move forward, de leverage the balance sheet, 122 00:07:08,440 --> 00:07:10,760 Speaker 2: put us in a place where we're going to be 123 00:07:10,840 --> 00:07:14,720 Speaker 2: really strong sort of coming out of this UH and ultimately, 124 00:07:14,880 --> 00:07:18,680 Speaker 2: even if the market doesn't get more healthy for for 125 00:07:18,760 --> 00:07:20,680 Speaker 2: some extended period of time, we're going to be a 126 00:07:21,200 --> 00:07:22,080 Speaker 2: very good place. 127 00:07:22,080 --> 00:07:26,240 Speaker 1: And you know, typically not always, but like usually when 128 00:07:26,240 --> 00:07:31,160 Speaker 1: a when a transportation company files bankruptcy, customers leave and drove. 129 00:07:31,320 --> 00:07:33,440 Speaker 1: You guys really haven't experienced that, right, at least that's 130 00:07:33,440 --> 00:07:34,680 Speaker 1: what I've read written the. 131 00:07:34,560 --> 00:07:37,040 Speaker 2: Pah, Yeah, we haven't, and I think you know, to 132 00:07:37,080 --> 00:07:41,680 Speaker 2: your point, often when the word uh, the B word 133 00:07:41,720 --> 00:07:44,800 Speaker 2: gets kind of thrown around in our space, people immediately 134 00:07:44,880 --> 00:07:47,480 Speaker 2: kind of wake up and think like, Hey, I'm gonna 135 00:07:47,480 --> 00:07:49,240 Speaker 2: I'm gonna wake up tomorrow and I'm not gonna be 136 00:07:49,240 --> 00:07:51,280 Speaker 2: able to get frayed out of a warehouse or I 137 00:07:51,480 --> 00:07:52,920 Speaker 2: might you know, my freight's going to be strange on 138 00:07:52,960 --> 00:07:54,800 Speaker 2: the side of the rood or a driver's not going 139 00:07:54,840 --> 00:07:57,800 Speaker 2: to be able to get home. This was a uh 140 00:07:57,920 --> 00:08:02,760 Speaker 2: sort of pre arranged, pre planned process, right, and it 141 00:08:02,800 --> 00:08:06,800 Speaker 2: came with the support of the critical kind of financial 142 00:08:06,840 --> 00:08:09,280 Speaker 2: stakeholders of the business, so there was really kind of 143 00:08:09,280 --> 00:08:12,080 Speaker 2: no risk of that. And we've spent a lot of 144 00:08:12,080 --> 00:08:17,080 Speaker 2: time obviously communicating very thoughtfully with our customers, very thoughtfully 145 00:08:17,120 --> 00:08:20,240 Speaker 2: with other partners that are critical to the business that 146 00:08:20,280 --> 00:08:22,760 Speaker 2: we execute day and day out to make sure they 147 00:08:22,800 --> 00:08:27,080 Speaker 2: understood that right, and we obviously we put a premium 148 00:08:27,080 --> 00:08:29,080 Speaker 2: on the service we provide for our customers every day. 149 00:08:29,160 --> 00:08:32,040 Speaker 2: That's kind of table stakes for being in the transportational 150 00:08:32,240 --> 00:08:36,720 Speaker 2: just its industry. But our customers have seen sort of 151 00:08:36,760 --> 00:08:40,240 Speaker 2: no no, no indicators that what we're telling them in 152 00:08:40,320 --> 00:08:42,400 Speaker 2: terms of business as usual is not the reality of 153 00:08:42,440 --> 00:08:45,520 Speaker 2: what's on the ground. And I think the fact that 154 00:08:45,559 --> 00:08:49,040 Speaker 2: we've we've we've we've been well prepared for this process, 155 00:08:49,080 --> 00:08:54,559 Speaker 2: communicating proactively and then obviously continuing to provide a good service. 156 00:08:54,640 --> 00:08:57,640 Speaker 2: I think all those together have sort of, you know, 157 00:08:57,800 --> 00:09:00,880 Speaker 2: obviously enhanced the confidence of our custom we're going to 158 00:09:01,160 --> 00:09:04,280 Speaker 2: come through this stronger than than than than going in. 159 00:09:04,640 --> 00:09:07,480 Speaker 1: Well, I wish you in your company all the best 160 00:09:07,600 --> 00:09:13,600 Speaker 1: in that process. So your largest business is the intermodal aspect. 161 00:09:13,320 --> 00:09:15,959 Speaker 2: Yeah, yeah, definitely from from a revenue perspective, that's correct. 162 00:09:16,280 --> 00:09:19,160 Speaker 1: And you know, so you guys bought that from XPO. 163 00:09:19,240 --> 00:09:23,280 Speaker 1: Beck was in twenty twenty two, twenty two, right, and 164 00:09:23,280 --> 00:09:26,240 Speaker 1: that was the old pacer business that XPO bought in 165 00:09:26,600 --> 00:09:31,400 Speaker 1: twenty fourteen. So obviously, you know, there's been a lot 166 00:09:31,400 --> 00:09:34,920 Speaker 1: of different owners in it. When you when you got 167 00:09:34,960 --> 00:09:39,520 Speaker 1: the business, what did you have to do to make 168 00:09:39,559 --> 00:09:42,160 Speaker 1: it run better? You know, when you first when you 169 00:09:42,200 --> 00:09:43,040 Speaker 1: first acquired it. 170 00:09:43,320 --> 00:09:46,120 Speaker 2: Yeah, so so so it was well run. It was 171 00:09:46,120 --> 00:09:48,320 Speaker 2: a well run business when we acquired it. But I 172 00:09:48,320 --> 00:09:55,080 Speaker 2: would say no sort of sort of no disrespect to XPO, 173 00:09:55,200 --> 00:09:58,560 Speaker 2: which has obviously been a very successful story in terms 174 00:09:58,600 --> 00:10:01,320 Speaker 2: of what the leadership team there has been able to 175 00:10:01,320 --> 00:10:03,480 Speaker 2: accomplish and the growth that they were able to execute 176 00:10:03,480 --> 00:10:05,800 Speaker 2: on over the course of uh, you know, sort of 177 00:10:05,840 --> 00:10:09,559 Speaker 2: starting that business from really inception to a pretty significant 178 00:10:09,600 --> 00:10:13,560 Speaker 2: sort of scale that it is today. But I would 179 00:10:13,600 --> 00:10:17,439 Speaker 2: say that the business was one that maybe wasn't necessarily 180 00:10:17,480 --> 00:10:20,560 Speaker 2: core to what XPO was doing and wanted to do 181 00:10:20,640 --> 00:10:24,280 Speaker 2: going forward. Uh And and as a result, you know, 182 00:10:24,640 --> 00:10:28,040 Speaker 2: we've obviously made it a huge focus for us in 183 00:10:28,160 --> 00:10:30,480 Speaker 2: terms of, uh, you know, where it fits in our 184 00:10:30,520 --> 00:10:34,160 Speaker 2: broader portfolio of services. And I'd say just the sort 185 00:10:34,200 --> 00:10:38,040 Speaker 2: of time, attention, investment, you know, sort of making sure 186 00:10:38,160 --> 00:10:41,079 Speaker 2: that we have the right sort of talent and the 187 00:10:41,160 --> 00:10:45,840 Speaker 2: right seats, uh internally kind of investing and incremental talent 188 00:10:46,360 --> 00:10:49,120 Speaker 2: in that business, whether it's on the commercial side or 189 00:10:49,160 --> 00:10:53,000 Speaker 2: in operations. You know, maybe bringing in some external talent 190 00:10:53,160 --> 00:10:55,520 Speaker 2: that uh, you know kind of looks at things with 191 00:10:55,559 --> 00:10:59,040 Speaker 2: the fresh set of eyes. Uh. Has been. Uh, i'd 192 00:10:59,040 --> 00:11:03,240 Speaker 2: say pretty impactful in terms of getting that business to 193 00:11:03,360 --> 00:11:05,640 Speaker 2: a place where we think it's it's it's it's going 194 00:11:05,679 --> 00:11:07,960 Speaker 2: to be really well positioned when we come out of 195 00:11:08,000 --> 00:11:09,280 Speaker 2: this this challenging cycle. 196 00:11:09,559 --> 00:11:13,480 Speaker 1: So when you when you bought that business four years ago, 197 00:11:14,760 --> 00:11:18,319 Speaker 1: since then, has your growth been mostly organic or are 198 00:11:18,360 --> 00:11:21,760 Speaker 1: you Are you a company that by your nature you're 199 00:11:21,880 --> 00:11:22,600 Speaker 1: very inquisitive. 200 00:11:22,800 --> 00:11:26,560 Speaker 2: Yeah, it's been mostly organic. We've done some We've done 201 00:11:26,559 --> 00:11:29,880 Speaker 2: some some tuck ins, I would say since that time 202 00:11:30,040 --> 00:11:33,120 Speaker 2: that were truly tuck ins, right. So, hey, we we 203 00:11:33,280 --> 00:11:37,240 Speaker 2: picked off a small kind of over the road free 204 00:11:37,240 --> 00:11:40,040 Speaker 2: broker because we felt like we needed to have that capability, right, 205 00:11:41,000 --> 00:11:43,160 Speaker 2: But again, that's not sort of the tip of this beer. 206 00:11:43,320 --> 00:11:47,320 Speaker 2: You know, intermodal drage our logistics business that kind of 207 00:11:47,440 --> 00:11:51,079 Speaker 2: unites those two provides connected tissue. Those are kind of 208 00:11:51,080 --> 00:11:53,080 Speaker 2: our primary service lines that we go to market with. 209 00:11:53,720 --> 00:11:57,360 Speaker 2: And uh, the tuck ins that we've done have been 210 00:11:57,360 --> 00:11:59,640 Speaker 2: more about just adding to capability, not necessarily you know, 211 00:11:59,679 --> 00:12:02,680 Speaker 2: sort of designed to create you know, sider of massive 212 00:12:02,720 --> 00:12:04,319 Speaker 2: growth in of themselves. 213 00:12:04,840 --> 00:12:06,920 Speaker 1: You know, we did we kind of mentioned that your 214 00:12:06,920 --> 00:12:11,000 Speaker 1: customers are pretty much stuck with you through the bankruptcy process. 215 00:12:11,800 --> 00:12:13,000 Speaker 1: So who are your customers? 216 00:12:13,480 --> 00:12:18,400 Speaker 2: Think about us as obviously doing uh business with uh 217 00:12:19,080 --> 00:12:22,120 Speaker 2: kind of two types of customers most more broadly, right, 218 00:12:22,160 --> 00:12:25,880 Speaker 2: we do business directly with shippers, you know, beneficial cargo owners. Uh. 219 00:12:25,880 --> 00:12:29,920 Speaker 2: And then we also do business through kind of other 220 00:12:30,000 --> 00:12:33,839 Speaker 2: industry participants or intermediaries I'll call them at a high level. Right, 221 00:12:33,920 --> 00:12:37,199 Speaker 2: So we have a long history of doing business with 222 00:12:38,040 --> 00:12:41,080 Speaker 2: uh freeforwarders, uh, you know, non vest off or any 223 00:12:41,080 --> 00:12:43,079 Speaker 2: common carriers where we provide you know, sort of the 224 00:12:43,120 --> 00:12:47,160 Speaker 2: outsourced kind of logistics and transplantation infrastructure for them as 225 00:12:47,200 --> 00:12:50,360 Speaker 2: they sort of move freight for on behalf of their 226 00:12:50,400 --> 00:12:54,079 Speaker 2: directorship or customers uh here in North America. Uh. And 227 00:12:54,120 --> 00:12:56,280 Speaker 2: then obviously we do business, like I said, directly with 228 00:12:56,280 --> 00:12:58,360 Speaker 2: with cargo owners, with shippers. And and when you think 229 00:12:58,400 --> 00:13:01,199 Speaker 2: about you know that the end markets uh that our 230 00:13:01,240 --> 00:13:07,559 Speaker 2: customers plan, you know, it's obviously folks like uh retailers, 231 00:13:07,880 --> 00:13:13,040 Speaker 2: consumer product you know, kind of manufacturers, suppliers, auto OEMs uh. 232 00:13:13,040 --> 00:13:15,559 Speaker 2: And then obviously you know kind of industrial products uh, 233 00:13:15,600 --> 00:13:19,200 Speaker 2: you know, kind of manufacturing type businesses as well, you know, 234 00:13:19,240 --> 00:13:22,720 Speaker 2: sort of anybody who needs to get physical goods uh. 235 00:13:22,760 --> 00:13:25,079 Speaker 2: You know, obviously to from one place to another. 236 00:13:25,400 --> 00:13:27,640 Speaker 1: So on the onset of the conversation, you know, you 237 00:13:27,800 --> 00:13:31,520 Speaker 1: reference the great and I'm saying that's sarcastically with their 238 00:13:31,600 --> 00:13:35,000 Speaker 1: quotes for those that can't hear it. Freight market, can 239 00:13:35,040 --> 00:13:36,760 Speaker 1: you talk about where we are in the freight cycle 240 00:13:36,840 --> 00:13:39,400 Speaker 1: and kind of what are your customers telling you about, 241 00:13:39,480 --> 00:13:41,800 Speaker 1: you know, where you think we're heading? 242 00:13:42,080 --> 00:13:45,360 Speaker 2: Yep, Yeah, So I would say, you know, sort of 243 00:13:45,360 --> 00:13:50,160 Speaker 2: our internal view, obviously informed by UH market intelligence, whether 244 00:13:50,200 --> 00:13:52,959 Speaker 2: that's you know, data driven stuff that's out there or 245 00:13:53,040 --> 00:13:55,880 Speaker 2: just from talking to customers and other industry participants, is 246 00:13:56,440 --> 00:14:00,280 Speaker 2: you know, i'd say, we're we're hopeful that we're seeing 247 00:14:00,320 --> 00:14:03,640 Speaker 2: a turn in the market, but or not necessarily calling 248 00:14:03,679 --> 00:14:07,559 Speaker 2: it a turn in the market just yet. You know. Obviously, 249 00:14:08,600 --> 00:14:11,160 Speaker 2: over the course of the past three years, I think 250 00:14:11,160 --> 00:14:14,839 Speaker 2: there's been a sort of a repeated narrative every year 251 00:14:14,920 --> 00:14:16,480 Speaker 2: that's like, hey, it's going to be the back half. 252 00:14:17,000 --> 00:14:19,120 Speaker 2: You know, everybody's optimistic about the back half. And then 253 00:14:19,120 --> 00:14:21,240 Speaker 2: as you're recovery in the back half. And I feel 254 00:14:21,280 --> 00:14:24,240 Speaker 2: like someone said that, you know, probably at a conference 255 00:14:24,400 --> 00:14:28,120 Speaker 2: back in twenty twenty three or twenty twenty four, and 256 00:14:28,360 --> 00:14:31,240 Speaker 2: they were sort of patient zero for for super spreading 257 00:14:31,640 --> 00:14:34,000 Speaker 2: that narrative throughout the industry and it just kind of 258 00:14:34,000 --> 00:14:36,120 Speaker 2: got can be getting repeated. You're in your out. But 259 00:14:36,160 --> 00:14:39,520 Speaker 2: I do think that there's there's reasons to be cautiously 260 00:14:39,520 --> 00:14:41,400 Speaker 2: optimistic that there could be a little bit of a 261 00:14:41,440 --> 00:14:47,160 Speaker 2: turn kind of happening here in real time. And you 262 00:14:47,200 --> 00:14:50,720 Speaker 2: know what's driving that turn, I guess is you know, 263 00:14:50,760 --> 00:14:52,760 Speaker 2: I don't think I don't think anybody who observes the 264 00:14:52,760 --> 00:14:55,280 Speaker 2: industr I'm going to share anything that's ever shattering at 265 00:14:55,280 --> 00:14:58,400 Speaker 2: this point, but it's no is it is it a 266 00:14:58,880 --> 00:15:01,520 Speaker 2: the impact of you know, some of the regulatory action 267 00:15:01,760 --> 00:15:03,680 Speaker 2: that has happened over the course of the past couple 268 00:15:03,720 --> 00:15:08,680 Speaker 2: of months around not down the sile cdl's English language proficiency, 269 00:15:08,760 --> 00:15:11,600 Speaker 2: those sorts of things. Uh, you know, there's reason for 270 00:15:11,640 --> 00:15:13,920 Speaker 2: optimism because I do think some of those things are 271 00:15:13,960 --> 00:15:17,760 Speaker 2: having an impact on the market. The reason I'd say 272 00:15:17,760 --> 00:15:21,160 Speaker 2: we're cautiously optimistic is, you know, those are all sort 273 00:15:21,160 --> 00:15:25,520 Speaker 2: of supply side or capacity side driven kind of tailwinds 274 00:15:25,560 --> 00:15:28,360 Speaker 2: quote unquote for the for for an asset based carrier 275 00:15:28,400 --> 00:15:31,960 Speaker 2: like ourselves, I think we'd also like to see obviously 276 00:15:31,960 --> 00:15:37,800 Speaker 2: some demand driven strength in the market, and uh, you know, 277 00:15:37,840 --> 00:15:40,080 Speaker 2: I the jury is still out on on whether that 278 00:15:40,200 --> 00:15:42,840 Speaker 2: is going to happen in twenty twenty six and what 279 00:15:42,880 --> 00:15:46,680 Speaker 2: that looks like. Uh. And then obviously we've had some 280 00:15:46,680 --> 00:15:49,520 Speaker 2: some pretty significant sort of impacts to the industry for 281 00:15:49,640 --> 00:15:52,400 Speaker 2: weather just over the course of the past call it 282 00:15:52,440 --> 00:15:55,480 Speaker 2: six to eight weeks, which you know, you have weather 283 00:15:55,560 --> 00:15:57,040 Speaker 2: every year, but I think it has been you know, 284 00:15:57,120 --> 00:15:59,080 Speaker 2: sort of more pronounced this year. And then maybe in 285 00:15:59,760 --> 00:16:03,560 Speaker 2: pros and so, you know, is that also impact in 286 00:16:03,560 --> 00:16:06,520 Speaker 2: the market. How much of that is sort of driving 287 00:16:06,560 --> 00:16:08,800 Speaker 2: what we're seeing kind of the real time in terms 288 00:16:08,840 --> 00:16:10,960 Speaker 2: of what's happened in the market. How much of that 289 00:16:11,080 --> 00:16:13,560 Speaker 2: is is just you know, sort of transitory season sort 290 00:16:13,560 --> 00:16:15,160 Speaker 2: of impact from from the weather. 291 00:16:15,440 --> 00:16:17,560 Speaker 1: Yeah, the weather in the Northeast been pretty bad, but 292 00:16:17,720 --> 00:16:19,800 Speaker 1: I've been lucky. Every time we've had a blizzard, I've 293 00:16:19,800 --> 00:16:22,040 Speaker 1: been traveling, so my kids were stuck doing the show. 294 00:16:22,120 --> 00:16:24,760 Speaker 2: Yeah. Yeah, we we have a pretty big presence in 295 00:16:24,760 --> 00:16:27,760 Speaker 2: the Northeast, and uh, you know, there's been it's been 296 00:16:27,800 --> 00:16:31,800 Speaker 2: a pretty challenging week this week just from an operation's perspective, 297 00:16:31,840 --> 00:16:34,520 Speaker 2: given the uh, you know, depending on where you are 298 00:16:34,560 --> 00:16:36,880 Speaker 2: here in New Jersey, you know, maybe two feet of snow. 299 00:16:36,920 --> 00:16:40,160 Speaker 2: If you're out in uh Long Island somewhere, you might 300 00:16:40,200 --> 00:16:41,720 Speaker 2: have two and a half to three right. 301 00:16:41,920 --> 00:16:46,520 Speaker 1: So, right, So you mentioned the regulatory currents that are 302 00:16:46,560 --> 00:16:49,760 Speaker 1: going on in the market with non domicile drivers and 303 00:16:49,840 --> 00:16:55,480 Speaker 1: English language proficiencies. Does that impact the drage market more 304 00:16:55,600 --> 00:16:58,760 Speaker 1: than the overall truckload market from your vantage point? Do 305 00:16:59,040 --> 00:17:02,000 Speaker 1: you see it impact it more that market, because from 306 00:17:02,040 --> 00:17:05,240 Speaker 1: what I understand, maybe it's more of a California thing, 307 00:17:05,280 --> 00:17:09,639 Speaker 1: but uh, it tends to, you know, be more impactful 308 00:17:10,000 --> 00:17:10,840 Speaker 1: at the ports. 309 00:17:11,200 --> 00:17:14,720 Speaker 2: Yeah, I mean we've we've seen it. I'd say we 310 00:17:14,800 --> 00:17:18,399 Speaker 2: have not felt it as much in the dram market 311 00:17:18,920 --> 00:17:21,680 Speaker 2: as maybe is kind of showing up in the sort 312 00:17:21,680 --> 00:17:23,880 Speaker 2: of long haul over the road market that's more sort 313 00:17:23,880 --> 00:17:26,960 Speaker 2: of publicly, uh you know, sort of visible and talked about. 314 00:17:27,280 --> 00:17:30,040 Speaker 2: But but yeah, I mean it is. It is certainly 315 00:17:30,040 --> 00:17:34,959 Speaker 2: something that we are monitoring and we'll we'll have an 316 00:17:35,000 --> 00:17:36,440 Speaker 2: impact on the. 317 00:17:36,359 --> 00:17:42,000 Speaker 1: Market and so on your drage business. Is that an 318 00:17:42,040 --> 00:17:44,640 Speaker 1: owner operator model or do you guys have drivers? 319 00:17:44,760 --> 00:17:48,120 Speaker 2: Yeah, it's it's primarily an owner operator model. Uh, with 320 00:17:48,200 --> 00:17:54,240 Speaker 2: some exceptions. Uh so we do run employee drivers. Uh 321 00:17:54,280 --> 00:17:58,240 Speaker 2: in certain markets where it makes sense from a regulatory 322 00:17:58,240 --> 00:18:01,919 Speaker 2: compliance perspective. Uh, and then we do run kind of 323 00:18:01,920 --> 00:18:05,359 Speaker 2: a contract carrier or broker style model and other markets 324 00:18:05,400 --> 00:18:07,280 Speaker 2: as well where it makes sense just kind of from 325 00:18:07,280 --> 00:18:09,080 Speaker 2: our regulatory perspective as well. 326 00:18:09,240 --> 00:18:12,840 Speaker 1: So from that regulatory perspective, we're just talking about California. 327 00:18:12,320 --> 00:18:15,640 Speaker 2: Primarily Californa primarily California, and then uh and then your 328 00:18:15,680 --> 00:18:17,680 Speaker 2: home state, New Jersey. Yeah. 329 00:18:18,000 --> 00:18:22,720 Speaker 1: Oh yeah, I didn't know we were the bad guys too. Uh. 330 00:18:22,760 --> 00:18:27,800 Speaker 1: And so for you guys those markets where you have drivers, 331 00:18:28,240 --> 00:18:31,000 Speaker 1: do you guys use have you have you used non 332 00:18:31,080 --> 00:18:33,640 Speaker 1: domicile CDL drivers in the pen No? 333 00:18:33,800 --> 00:18:35,960 Speaker 2: No, I mean we we we obviously do a pretty 334 00:18:36,000 --> 00:18:40,520 Speaker 2: thorough vetting process as we onboard kind of independent contractor 335 00:18:40,560 --> 00:18:43,399 Speaker 2: on our operators. Uh. So generally speaking, like that's a 336 00:18:43,600 --> 00:18:46,080 Speaker 2: that's a focus for us, is making sure that we're 337 00:18:46,760 --> 00:18:50,080 Speaker 2: using folks who are are are safe. Uh, they have 338 00:18:50,160 --> 00:18:52,440 Speaker 2: you know, sort of equipment that complies and they're they're 339 00:18:52,440 --> 00:18:56,320 Speaker 2: obviously compliant in terms of what's required and then to 340 00:18:56,760 --> 00:19:00,680 Speaker 2: be uh you know, sort of legal both leading into 341 00:19:00,720 --> 00:19:03,639 Speaker 2: this this change in the market and and and going forward. 342 00:19:03,680 --> 00:19:05,040 Speaker 1: I don't know if it's too early to ask, but 343 00:19:05,080 --> 00:19:08,800 Speaker 1: obviously there's a recent ruling by the Supreme Court about 344 00:19:09,119 --> 00:19:13,200 Speaker 1: the terrace leaving them not legal. Are you seeing any 345 00:19:13,320 --> 00:19:19,119 Speaker 1: changes in shippers at least your international businesses following that ruling. 346 00:19:19,240 --> 00:19:22,040 Speaker 2: Yeah. No, that's a great question. And i'd say you're you're, 347 00:19:22,119 --> 00:19:24,120 Speaker 2: you're spot on in terms of how you led into 348 00:19:24,119 --> 00:19:25,840 Speaker 2: that question. It might be a little bit too litly 349 00:19:25,880 --> 00:19:31,520 Speaker 2: to call, you know, interestingly. Uh. There is a pretty 350 00:19:31,600 --> 00:19:34,320 Speaker 2: large industry not pretty large, a very large industry event 351 00:19:35,520 --> 00:19:39,800 Speaker 2: uh starting Sunday, which is a TPM conference. The GC 352 00:19:39,960 --> 00:19:43,159 Speaker 2: runs it, which is a transpecific miritime conference. It's that 353 00:19:43,320 --> 00:19:46,920 Speaker 2: kind of annual you know, sort of Transpacific trade lane 354 00:19:47,480 --> 00:19:51,240 Speaker 2: UH conference that happens in Long Beach every year. UH. 355 00:19:51,280 --> 00:19:53,280 Speaker 2: And it's often a conference where it is a conference 356 00:19:53,320 --> 00:19:56,640 Speaker 2: where a lot of ocean carriers UH and a lot 357 00:19:56,640 --> 00:19:59,439 Speaker 2: of shippers are you know, sort of negotiating their their 358 00:19:59,440 --> 00:20:04,760 Speaker 2: ocean kind tracks for the coming year. And what's sort 359 00:20:04,760 --> 00:20:07,399 Speaker 2: of happening what what what shippers views are, What ocean 360 00:20:07,440 --> 00:20:11,879 Speaker 2: carriers view are? Views are on demand for your shooping 361 00:20:11,880 --> 00:20:15,840 Speaker 2: capacity on the trans pack is obviously a hot topic 362 00:20:15,840 --> 00:20:18,120 Speaker 2: of discussion in terms of how they think about how 363 00:20:18,200 --> 00:20:20,080 Speaker 2: what where rates are going to go and what capacity 364 00:20:20,160 --> 00:20:22,320 Speaker 2: is going to look like over the course of the 365 00:20:22,800 --> 00:20:26,640 Speaker 2: next twelve months. So I think, uh, next week will 366 00:20:26,640 --> 00:20:31,320 Speaker 2: be a good way for our team to get you know, 367 00:20:31,400 --> 00:20:35,359 Speaker 2: kind of the real time sort of qualitative feedback on 368 00:20:35,560 --> 00:20:38,840 Speaker 2: how people are thinking about what that that care fooling 369 00:20:38,960 --> 00:20:42,719 Speaker 2: means for for how they think about their import trends 370 00:20:42,760 --> 00:20:44,159 Speaker 2: over the course of the next twelve months. 371 00:20:44,400 --> 00:20:47,080 Speaker 1: Yeah. As tough as the spot truckload market has been, 372 00:20:47,119 --> 00:20:51,040 Speaker 1: the spot container market has been probably a lot worse. 373 00:20:51,080 --> 00:20:53,200 Speaker 1: So I would I would imagine that the shippers will 374 00:20:53,200 --> 00:20:56,480 Speaker 1: have the upper hand. Yeah, and those negotiations. 375 00:20:55,720 --> 00:20:59,119 Speaker 2: Yeah yeah. And I think the other thing that my senses, 376 00:20:59,160 --> 00:21:01,119 Speaker 2: I think people are probably going to be a little 377 00:21:01,119 --> 00:21:07,440 Speaker 2: bit circumspect about reacting too quickly to ruling when you know, 378 00:21:07,480 --> 00:21:11,920 Speaker 2: obviously the administration pretty quickly moved to uh put something 379 00:21:11,960 --> 00:21:15,120 Speaker 2: else back in place, uh to to to make sure 380 00:21:15,119 --> 00:21:18,880 Speaker 2: that those TIFFs, which are obviously a huge priority for them, uh, 381 00:21:18,960 --> 00:21:20,160 Speaker 2: you know, we're still intact. 382 00:21:20,600 --> 00:21:25,040 Speaker 1: So more on the regulatory front, you know, there's a 383 00:21:25,080 --> 00:21:28,639 Speaker 1: big proposed merger in the rail industry with UNW Pacific 384 00:21:28,680 --> 00:21:32,480 Speaker 1: and or Folks Southern yeah. Are. I guess do you 385 00:21:32,560 --> 00:21:36,159 Speaker 1: have like a main carrier that you go your intermodal 386 00:21:36,200 --> 00:21:37,919 Speaker 1: business travels on? 387 00:21:38,640 --> 00:21:44,040 Speaker 2: Yeah? Yeah, so, uh, no secrets there. We're primarily uh 388 00:21:44,320 --> 00:21:47,960 Speaker 2: are are are are? We're exclusively at work with the 389 00:21:48,040 --> 00:21:50,280 Speaker 2: UP in the west, the western region of the US, 390 00:21:51,560 --> 00:21:53,879 Speaker 2: and then our our our significant primary career on the 391 00:21:53,880 --> 00:21:57,040 Speaker 2: east is cs X. We we we have a relationship 392 00:21:57,040 --> 00:21:59,919 Speaker 2: and do do have some work with with the n AS, 393 00:22:00,160 --> 00:22:02,600 Speaker 2: but but primarily UP and c s X. 394 00:22:03,200 --> 00:22:06,280 Speaker 1: So, I guess do you do you do you have 395 00:22:06,320 --> 00:22:08,240 Speaker 1: a stance on the deal? Have you have you said 396 00:22:08,280 --> 00:22:10,600 Speaker 1: we like it or we don't like it? I'm assuming 397 00:22:10,840 --> 00:22:12,520 Speaker 1: I'm pretty sure I know where you're gonna answer. 398 00:22:12,520 --> 00:22:18,200 Speaker 2: But yeah, look so so first and foremost, all those 399 00:22:18,200 --> 00:22:21,720 Speaker 2: companies I just named, you know, we we've been doing 400 00:22:21,760 --> 00:22:25,280 Speaker 2: business with them for a long time. They're they're great 401 00:22:25,320 --> 00:22:27,760 Speaker 2: partners to us. We have tremendous respect and value of 402 00:22:27,760 --> 00:22:32,520 Speaker 2: those relationships. Highly. I think our view is, you know, uh, 403 00:22:32,840 --> 00:22:35,439 Speaker 2: we're gonna we're gonna sort of do whatever we need 404 00:22:35,480 --> 00:22:39,000 Speaker 2: to do to adapt to whatever the changing landscape is. 405 00:22:39,080 --> 00:22:43,199 Speaker 2: If if there is a changing landscape, you know, I think, uh, 406 00:22:43,200 --> 00:22:47,239 Speaker 2: you know, I I admire the UP for uh, you know, 407 00:22:47,520 --> 00:22:49,960 Speaker 2: going out there and trying to do something to sort 408 00:22:49,960 --> 00:22:52,040 Speaker 2: of change uh, you know, sort of the landscape. I mean, 409 00:22:52,080 --> 00:22:53,480 Speaker 2: I think you know, you have to you have to 410 00:22:53,520 --> 00:22:56,480 Speaker 2: admire someone who's going to uh, you know, sort of 411 00:22:57,240 --> 00:23:01,720 Speaker 2: take a big swing. But ultimately, we're we value the 412 00:23:01,760 --> 00:23:05,760 Speaker 2: relationships that we have now we continue to value those partnerships, uh, 413 00:23:05,800 --> 00:23:08,760 Speaker 2: and we're gonna we're going to do uh whatever we 414 00:23:08,800 --> 00:23:10,720 Speaker 2: need to do to be uh the best carrier that 415 00:23:10,760 --> 00:23:14,480 Speaker 2: we can be uh and uh for our customers. In 416 00:23:14,560 --> 00:23:15,879 Speaker 2: terms of however this shakes. 417 00:23:15,680 --> 00:23:17,959 Speaker 1: Up, and I'm assuming you guys are doing you know, 418 00:23:18,520 --> 00:23:20,560 Speaker 1: a lot of game theory stuff about you know, the 419 00:23:20,600 --> 00:23:24,080 Speaker 1: possible outcomes. So if if the deal did get approved 420 00:23:24,680 --> 00:23:27,600 Speaker 1: with that mean that would be more or less would 421 00:23:27,640 --> 00:23:33,200 Speaker 1: be on your Your business with with UP would increase, 422 00:23:33,840 --> 00:23:35,959 Speaker 1: and you'd probably do less with CSX. 423 00:23:36,080 --> 00:23:37,640 Speaker 2: Yeah I don't. I don't. Yeah, I don't know. That's 424 00:23:37,680 --> 00:23:40,879 Speaker 2: the answer to that question, honestly, because but my expectation is, 425 00:23:40,920 --> 00:23:44,760 Speaker 2: and I think our team's expectation is, Ultimately we do 426 00:23:44,880 --> 00:23:47,040 Speaker 2: think that it's it's very likely the case that if 427 00:23:47,080 --> 00:23:52,080 Speaker 2: the transaction is approved, you know, the railroads are going 428 00:23:52,160 --> 00:23:54,880 Speaker 2: to continue to uh to interchange with each other as 429 00:23:54,920 --> 00:23:59,000 Speaker 2: they are now. Right, So we would expect, uh, right now, 430 00:23:59,040 --> 00:24:01,040 Speaker 2: you know, we would sort of expect that the way 431 00:24:01,040 --> 00:24:03,760 Speaker 2: we're operating the business now is going to continue to 432 00:24:03,760 --> 00:24:07,240 Speaker 2: be a sort of a viable path for us going forward. Obviously, 433 00:24:07,320 --> 00:24:11,000 Speaker 2: if we need to adapt or adjust as networks change 434 00:24:11,080 --> 00:24:13,480 Speaker 2: or whatever, we'll sort of look at that carefully and 435 00:24:13,520 --> 00:24:15,280 Speaker 2: make sure we're doing the right things for us and 436 00:24:15,359 --> 00:24:20,800 Speaker 2: our customers. But ultimately, our expectation is that the railroads 437 00:24:20,800 --> 00:24:22,359 Speaker 2: will continue to in or change even though you have 438 00:24:22,480 --> 00:24:28,120 Speaker 2: this now new potential trans con GPK and US Aligned network. 439 00:24:28,480 --> 00:24:32,600 Speaker 1: Yeah, for those you to read more about the PNS merger, 440 00:24:32,640 --> 00:24:34,320 Speaker 1: we have a lot of work on the Bloomberg terminal 441 00:24:34,359 --> 00:24:38,320 Speaker 1: at birail you can access. You know, we still think 442 00:24:38,320 --> 00:24:42,200 Speaker 1: they're pretty high regulatory hurdles for the deal to pass, 443 00:24:42,320 --> 00:24:46,400 Speaker 1: for the STB to give it their stamp of approval, 444 00:24:46,440 --> 00:24:49,040 Speaker 1: but it'll be a while so so we find out 445 00:24:49,280 --> 00:24:52,480 Speaker 1: the ruling on that, probably a twenty twenty seven event, 446 00:24:55,359 --> 00:24:58,600 Speaker 1: let's see. So, I guess, you know, we talked about 447 00:24:58,640 --> 00:25:02,960 Speaker 1: like the trucking market, you're cautiously optimistic. I'm assuming you're 448 00:25:03,000 --> 00:25:08,360 Speaker 1: talking with customers today whether it's on the drage part 449 00:25:08,480 --> 00:25:12,480 Speaker 1: or the intermodial part or both. What are those conversations 450 00:25:12,520 --> 00:25:14,720 Speaker 1: going when it comes to rates or are you guys 451 00:25:14,800 --> 00:25:18,439 Speaker 1: able to increase rates or is it still you know, 452 00:25:18,800 --> 00:25:21,359 Speaker 1: the shippers have the negotiating power at the table. 453 00:25:21,600 --> 00:25:25,200 Speaker 2: Yeah, I'd say it's it's it's evolving, But i'd say, 454 00:25:25,320 --> 00:25:28,480 Speaker 2: you know, our our views are that, you know, we 455 00:25:28,560 --> 00:25:32,480 Speaker 2: think that it's like, we're not anticipating sort of a 456 00:25:32,560 --> 00:25:37,200 Speaker 2: hockey stick rate environment in twenty twenty six. I think 457 00:25:37,200 --> 00:25:41,800 Speaker 2: we are anticipating obviously some some upward sort of pressure 458 00:25:42,640 --> 00:25:46,680 Speaker 2: in favor of carriers, just given the inflationary costs pressures 459 00:25:46,680 --> 00:25:48,800 Speaker 2: that we've experienced over the course the past couple of years. 460 00:25:49,800 --> 00:25:52,600 Speaker 2: But you know, I think we're we continue to want 461 00:25:52,640 --> 00:25:57,240 Speaker 2: to be a good partner to our customers, and you know, 462 00:25:57,240 --> 00:26:00,800 Speaker 2: we're sort of approaching the conversations in that manner. 463 00:26:01,240 --> 00:26:04,840 Speaker 1: So I know this probably isn't your number one scenario 464 00:26:05,359 --> 00:26:07,480 Speaker 1: given the conversation we've had so far. But you know, 465 00:26:07,480 --> 00:26:09,640 Speaker 1: if there was a snapback in demand where we did 466 00:26:09,680 --> 00:26:16,119 Speaker 1: see like demand increase for god knows whatever reason, is 467 00:26:16,520 --> 00:26:21,800 Speaker 1: the industry prepared, Does it have enough capacity that it 468 00:26:21,800 --> 00:26:27,679 Speaker 1: can put into place to accept, you know, an acceleration 469 00:26:27,800 --> 00:26:28,840 Speaker 1: in demand growth. 470 00:26:28,920 --> 00:26:32,439 Speaker 2: Yeah, I think so from my perspective, speaking mostly like 471 00:26:32,440 --> 00:26:36,800 Speaker 2: from the perspective of an intermodal transportation and logistics provider. 472 00:26:37,720 --> 00:26:40,159 Speaker 2: You know, you know, my view is that, you know, 473 00:26:40,200 --> 00:26:44,120 Speaker 2: if there is significant and kind of wrap and inflection 474 00:26:44,240 --> 00:26:47,199 Speaker 2: and demand, you know, I'm not going to pretend to 475 00:26:47,280 --> 00:26:49,560 Speaker 2: have any idea what would drive that, to your point, 476 00:26:49,600 --> 00:26:52,960 Speaker 2: but if there is, I do believe that the industry 477 00:26:53,800 --> 00:26:58,880 Speaker 2: is well positioned to absorb that, certainly much more much 478 00:26:58,920 --> 00:27:02,800 Speaker 2: better position than is or was uh in coming out 479 00:27:02,800 --> 00:27:06,080 Speaker 2: of you know, back half of twenty. And the way 480 00:27:06,080 --> 00:27:09,560 Speaker 2: I think about that is, you know, there's folks like us, 481 00:27:10,359 --> 00:27:13,240 Speaker 2: our competitors, you know, we we've all invested in capacity, 482 00:27:14,040 --> 00:27:16,880 Speaker 2: uh coming out of of of COVID. Uh. So there 483 00:27:16,960 --> 00:27:20,720 Speaker 2: is incremental capacity uh in the marketplace from a container perspective, 484 00:27:21,200 --> 00:27:25,000 Speaker 2: from a chassis perspective, you know, from ah, there's there 485 00:27:25,080 --> 00:27:29,119 Speaker 2: there is excess capacity from a warehousing perspective to allow 486 00:27:29,240 --> 00:27:32,520 Speaker 2: for you know, goods to be stored and or translated 487 00:27:32,640 --> 00:27:36,320 Speaker 2: or you know sort of reworked, consolidated, deconsolidated. And then 488 00:27:36,320 --> 00:27:40,440 Speaker 2: I'd say the railroads have obviously invested a lot over 489 00:27:40,480 --> 00:27:42,639 Speaker 2: the course of the past couple of years, uh, in 490 00:27:42,760 --> 00:27:46,879 Speaker 2: terms of building uh a better you know sort of 491 00:27:46,880 --> 00:27:50,840 Speaker 2: pipeline pipe capacity, pipe as well. UH. Whether that's you know, 492 00:27:51,359 --> 00:27:54,680 Speaker 2: investments from a from a capital perspective and infrastructure, whether 493 00:27:54,720 --> 00:27:58,320 Speaker 2: it's you know, their focus on service uh and making 494 00:27:58,359 --> 00:28:01,640 Speaker 2: that uh you know, sort of mental or are more 495 00:28:01,680 --> 00:28:04,200 Speaker 2: instrumental to to sort of their operating cadence and things 496 00:28:04,280 --> 00:28:09,240 Speaker 2: like that. So I'm optimistic that the business is sort 497 00:28:09,280 --> 00:28:12,159 Speaker 2: of well positioned in the industry, is well positioned in 498 00:28:12,200 --> 00:28:15,199 Speaker 2: the event that we do get you know, sort of 499 00:28:15,440 --> 00:28:17,800 Speaker 2: a meaningful castep change inflection on demand. 500 00:28:18,000 --> 00:28:21,480 Speaker 1: You know, you mentioned weather disruptions earlier, and you know, 501 00:28:21,560 --> 00:28:24,119 Speaker 1: we were talking about the railroads. So I'm just curious 502 00:28:24,160 --> 00:28:26,639 Speaker 1: because you're obviously, what, you know, a big customer of 503 00:28:26,680 --> 00:28:30,919 Speaker 1: the railroads, how has their service levels been, you know, 504 00:28:31,680 --> 00:28:34,800 Speaker 1: over the last twelve months or yeah, and also how 505 00:28:35,119 --> 00:28:39,600 Speaker 1: how have they been during these last weather incidents versus 506 00:28:39,640 --> 00:28:40,480 Speaker 1: in years past. 507 00:28:40,840 --> 00:28:43,920 Speaker 2: Yeah, I think the service has been on both fronts 508 00:28:43,960 --> 00:28:49,440 Speaker 2: has been good. So the I think you know, the railroads, 509 00:28:49,760 --> 00:28:53,800 Speaker 2: particularly the ones that we work with, have recognized that 510 00:28:53,800 --> 00:28:57,720 Speaker 2: that service is paramount, particularly in the event that you 511 00:28:58,720 --> 00:29:01,840 Speaker 2: are going to go out and try and convert trucks 512 00:29:02,120 --> 00:29:06,080 Speaker 2: to rail moves. You know, you need that real move 513 00:29:06,120 --> 00:29:09,440 Speaker 2: to feel as much like truck as it can, and 514 00:29:09,440 --> 00:29:14,400 Speaker 2: that requires, you know, consistent, reliable service in order to 515 00:29:14,400 --> 00:29:18,840 Speaker 2: be able to do so. And I have been, you know, 516 00:29:18,920 --> 00:29:23,600 Speaker 2: really kind of struck, honestly by the progress that's been 517 00:29:23,640 --> 00:29:26,680 Speaker 2: made by the railroads to kind of continue to improve 518 00:29:26,760 --> 00:29:30,280 Speaker 2: enhand service. Uh. They've invested in infrastructure, like I said, 519 00:29:30,280 --> 00:29:36,040 Speaker 2: that's designed to provide more consistent capacity and consistent service 520 00:29:36,960 --> 00:29:39,680 Speaker 2: over the course of you know, the next five, ten, fifteen, 521 00:29:39,800 --> 00:29:43,240 Speaker 2: twenty years. And I have to you know, sort of 522 00:29:43,240 --> 00:29:45,200 Speaker 2: take my cap a little bit too them because that 523 00:29:45,200 --> 00:29:48,680 Speaker 2: that really has has shown up in the sort of 524 00:29:48,680 --> 00:29:50,560 Speaker 2: service metrics that they've been able to deliver over the 525 00:29:50,560 --> 00:29:52,720 Speaker 2: course the past twelve months and even during some of 526 00:29:52,720 --> 00:29:57,960 Speaker 2: these challenging weather periods. But also, you know, I expect 527 00:29:58,000 --> 00:30:01,680 Speaker 2: well pay dividends down the road, uh as we go 528 00:30:01,760 --> 00:30:04,960 Speaker 2: out and market and sell intermodel as as a mode. 529 00:30:05,160 --> 00:30:08,920 Speaker 1: So a couple of weeks ago, attended Manifest, which is 530 00:30:08,960 --> 00:30:12,880 Speaker 1: like a conference with technology and transports. You know, I'm 531 00:30:12,880 --> 00:30:17,040 Speaker 1: curious for STG, you know, how are you employing technology 532 00:30:17,160 --> 00:30:19,480 Speaker 1: as a productivity tool and if you can talk about 533 00:30:19,760 --> 00:30:22,480 Speaker 1: you know, what you're spending on it and the benefits 534 00:30:22,520 --> 00:30:23,239 Speaker 1: you're getting from it. 535 00:30:23,320 --> 00:30:28,480 Speaker 2: Yeah, sure, sure, so we And maybe I'm sort of 536 00:30:28,480 --> 00:30:33,160 Speaker 2: betraying some of my philosophy around technology more more generally 537 00:30:33,200 --> 00:30:35,160 Speaker 2: here with what I'm about to say, but you know, 538 00:30:35,200 --> 00:30:39,520 Speaker 2: we view technology as an enabler for us, uh and 539 00:30:39,560 --> 00:30:44,480 Speaker 2: not necessarily a producting of itself. Right, and so, uh, 540 00:30:44,720 --> 00:30:47,240 Speaker 2: the way we think about many of these tools, which 541 00:30:47,280 --> 00:30:50,720 Speaker 2: are sort of rapidly advancing in terms of their capabilities 542 00:30:50,960 --> 00:30:54,920 Speaker 2: here in real time is, you know, our focus has 543 00:30:54,960 --> 00:31:00,720 Speaker 2: been on identifying processes in our business, whether it's you know, 544 00:31:00,840 --> 00:31:02,880 Speaker 2: in the operation of the business itself, you know, the 545 00:31:02,880 --> 00:31:06,760 Speaker 2: physical moving of freight or in uh you know, sort 546 00:31:06,760 --> 00:31:11,800 Speaker 2: of support or back office uh, processes where we can 547 00:31:11,840 --> 00:31:15,800 Speaker 2: deploy you know, automation tools AI or not that can 548 00:31:15,840 --> 00:31:19,200 Speaker 2: allow us to be more efficient or accurate, uh, smarter 549 00:31:19,400 --> 00:31:21,080 Speaker 2: and kind of how we do things day and day out. 550 00:31:21,240 --> 00:31:24,200 Speaker 2: So so the area is where we've deployed tools thus far, 551 00:31:24,520 --> 00:31:27,720 Speaker 2: things like you know, how do we how do we 552 00:31:27,800 --> 00:31:30,920 Speaker 2: bid or quote you know, kind of spot market opportunities, 553 00:31:30,920 --> 00:31:34,120 Speaker 2: whether that's an intermodial or truck how do we use 554 00:31:34,160 --> 00:31:38,640 Speaker 2: some of these intelligence tools to better plan routes uh 555 00:31:38,680 --> 00:31:43,640 Speaker 2: each day for our drivers, Uh, so that we can 556 00:31:44,280 --> 00:31:48,120 Speaker 2: minimize things like empty miles, which obviously is a cost 557 00:31:48,120 --> 00:31:53,000 Speaker 2: production lever, but also a sustainability lever as well, and 558 00:31:53,120 --> 00:31:55,040 Speaker 2: and things like that. Right, So that that's where we've 559 00:31:55,040 --> 00:31:57,720 Speaker 2: deployed them, is identifying these processes that are sort of 560 00:31:57,760 --> 00:32:01,880 Speaker 2: ripe for the use of some of the tools. But 561 00:32:02,120 --> 00:32:07,440 Speaker 2: we're certainly not a business right now. Uh that is 562 00:32:07,920 --> 00:32:13,120 Speaker 2: uh going to uh say, hey, we're no longer Uh, 563 00:32:14,480 --> 00:32:19,719 Speaker 2: We're gonna basically be an AI enabled company that needs 564 00:32:19,840 --> 00:32:23,120 Speaker 2: you know, forty percent less of our workforce as a result. 565 00:32:23,560 --> 00:32:27,040 Speaker 2: For example, like some of the software and service tech 566 00:32:27,200 --> 00:32:30,080 Speaker 2: platforms have announced literally in the past, you know, twenty 567 00:32:30,080 --> 00:32:31,320 Speaker 2: four to forty eight hours. 568 00:32:31,280 --> 00:32:34,160 Speaker 1: And so like are you using I mean, you know, 569 00:32:34,160 --> 00:32:38,200 Speaker 1: because are you using like AI chat bots for like 570 00:32:38,960 --> 00:32:41,160 Speaker 1: for to dealing with customers and things like that. 571 00:32:41,240 --> 00:32:43,880 Speaker 2: Yeah, so we have we have AI chatbots that we 572 00:32:44,040 --> 00:32:48,720 Speaker 2: use for things like kind of level one customer service stuff. 573 00:32:49,720 --> 00:32:52,880 Speaker 2: And then you know the other area that that you know, 574 00:32:52,960 --> 00:32:55,800 Speaker 2: it's kind of softer, but I think is maybe not 575 00:32:55,920 --> 00:32:58,800 Speaker 2: talked about as much. What is probably kind of highly 576 00:32:58,840 --> 00:33:04,480 Speaker 2: relevant is you know, we've empowered uh teams to just 577 00:33:04,680 --> 00:33:09,080 Speaker 2: use lll MS obviously through our you know, managed through 578 00:33:09,080 --> 00:33:13,840 Speaker 2: our sort of I T security and compliance environment, just 579 00:33:13,880 --> 00:33:15,880 Speaker 2: in support of like day to day tasks. Right. So 580 00:33:16,560 --> 00:33:20,920 Speaker 2: think about you know, commercial teams and marketing teams uh 581 00:33:21,240 --> 00:33:26,040 Speaker 2: using uh things like you know, Microsoft Copilot to research uh, 582 00:33:26,080 --> 00:33:30,320 Speaker 2: you know, target customers and help them sort of uh 583 00:33:30,440 --> 00:33:33,800 Speaker 2: kind of make those processes more efficient or research. You know, 584 00:33:33,880 --> 00:33:36,360 Speaker 2: kind of hey what what what's a what's an application 585 00:33:36,520 --> 00:33:40,320 Speaker 2: that we could use in our business that would be 586 00:33:40,360 --> 00:33:42,440 Speaker 2: relevant for this customer based on you know, things that 587 00:33:42,480 --> 00:33:46,000 Speaker 2: we know about their sort of free flows. Right. So 588 00:33:46,520 --> 00:33:47,880 Speaker 2: those are the kind of things that just sort of 589 00:33:48,000 --> 00:33:51,320 Speaker 2: enable kind of everyday activity and make them more efficient 590 00:33:51,400 --> 00:33:53,800 Speaker 2: that you can't necessarily put a finger on to say, 591 00:33:53,840 --> 00:33:56,440 Speaker 2: hey this is what this is worth some business? Uh, 592 00:33:56,480 --> 00:33:59,800 Speaker 2: but I think it just makes people that much kind 593 00:33:59,800 --> 00:34:01,640 Speaker 2: of aster and smarter and is a little bit sort 594 00:34:01,680 --> 00:34:04,040 Speaker 2: of a force multiplier from a productivity perspective. 595 00:34:04,200 --> 00:34:07,600 Speaker 1: So you you mentioned sustainability. If we can pivot to 596 00:34:07,680 --> 00:34:09,960 Speaker 1: there for a minute, do you have any thoughts on 597 00:34:10,000 --> 00:34:12,719 Speaker 1: the twenty twenty seven EPA compliant trucks. Are you guys 598 00:34:12,719 --> 00:34:13,200 Speaker 1: pre buying. 599 00:34:13,480 --> 00:34:18,080 Speaker 2: Yeah, so obviously we're watching that. That's uh I mentioned 600 00:34:18,080 --> 00:34:22,720 Speaker 2: to earlier. We're an owner operator, an independent contractor driven model, 601 00:34:23,360 --> 00:34:27,239 Speaker 2: so we're obviously not buying trucks on behalf of our 602 00:34:27,239 --> 00:34:30,600 Speaker 2: independent contractor owner operators, but we're obviously encouraging them to 603 00:34:30,640 --> 00:34:34,200 Speaker 2: do the right thing. And obviously, well we'll make sure 604 00:34:34,239 --> 00:34:37,520 Speaker 2: that our capacity is compliant to whatever sort of regulatory 605 00:34:37,600 --> 00:34:40,719 Speaker 2: regimes are in place. Come come twenty twenty six, later 606 00:34:40,760 --> 00:34:43,520 Speaker 2: twenty twenty six, earlier in twenty twenty seven. To the 607 00:34:43,520 --> 00:34:46,560 Speaker 2: extent that we are running our own trucks in certain markets, 608 00:34:46,600 --> 00:34:48,040 Speaker 2: we're obviously did the same. Okay. 609 00:34:48,280 --> 00:34:50,640 Speaker 1: And for those those markets where you're running your own trucks, 610 00:34:50,640 --> 00:34:53,400 Speaker 1: are you guys playing around with evs or autonomous trucks 611 00:34:53,400 --> 00:34:53,680 Speaker 1: at all? 612 00:34:53,800 --> 00:34:58,880 Speaker 2: Yeah? So we where we have deployed electric vehicles has 613 00:34:59,040 --> 00:35:04,680 Speaker 2: been primarily in our yard trucks. Right, So we're running 614 00:35:05,360 --> 00:35:09,040 Speaker 2: roughly four five minutes square feet of warehouse space. Uh. 615 00:35:09,080 --> 00:35:11,960 Speaker 2: Most of those warehouses obviously have yard trucks to you know, 616 00:35:12,040 --> 00:35:19,799 Speaker 2: reposition containers and traders on site. Those amazingly those yard trucks, Uh, 617 00:35:19,840 --> 00:35:24,440 Speaker 2: those diesel yard trucks are pretty significant uh emissions uh 618 00:35:24,440 --> 00:35:30,759 Speaker 2: sources and UH deploying electric vehicles uh and uh and 619 00:35:30,760 --> 00:35:34,360 Speaker 2: and and and those in that context has been a 620 00:35:34,360 --> 00:35:38,040 Speaker 2: pretty nice uh kind of win for us, and in 621 00:35:38,120 --> 00:35:42,160 Speaker 2: terms of reducing kind of our emissions footprint, uh, in 622 00:35:42,200 --> 00:35:44,200 Speaker 2: terms of what we you know, sort of generate as 623 00:35:44,280 --> 00:35:48,040 Speaker 2: as a business. And then autonomous is not not really 624 00:35:48,120 --> 00:35:51,239 Speaker 2: a sort of front of mind uh sort of thing 625 00:35:51,320 --> 00:35:54,600 Speaker 2: for us. And then we obviously monitor the space. I 626 00:35:54,640 --> 00:35:58,279 Speaker 2: think we'd like to see you know a little bit 627 00:35:58,320 --> 00:36:02,080 Speaker 2: more uh sort of special the city around kind of 628 00:36:02,080 --> 00:36:03,480 Speaker 2: how those are going to work, how they're going to 629 00:36:03,520 --> 00:36:06,560 Speaker 2: be regulated, you know, kind of how a trans carriers 630 00:36:06,600 --> 00:36:11,520 Speaker 2: are going to think about autonomous vehicles and the like 631 00:36:11,640 --> 00:36:14,000 Speaker 2: before we sort of dive in. So I think I 632 00:36:14,000 --> 00:36:16,360 Speaker 2: think that's still a little bit sort of down the 633 00:36:16,680 --> 00:36:18,879 Speaker 2: down the horizon, at least from STG, at least from 634 00:36:18,880 --> 00:36:19,760 Speaker 2: STGs persctive. 635 00:36:19,880 --> 00:36:22,560 Speaker 1: So you know, you know, I mentioned, you know earlier 636 00:36:22,680 --> 00:36:26,799 Speaker 1: you joined STG in twenty sixteen. How did you get 637 00:36:26,840 --> 00:36:31,000 Speaker 1: into the transports industry? We involved in transports before that 638 00:36:31,200 --> 00:36:33,879 Speaker 1: kind of you know, how did you get to where 639 00:36:33,920 --> 00:36:34,480 Speaker 1: you are today? 640 00:36:34,560 --> 00:36:39,440 Speaker 2: Yeah? Yeah, So I don't think I'm unique in this industry. 641 00:36:39,480 --> 00:36:41,000 Speaker 2: I kind of I kind of got into it a 642 00:36:41,000 --> 00:36:45,799 Speaker 2: little bit by accident, so I actually, please please don't 643 00:36:45,800 --> 00:36:48,839 Speaker 2: hold this against me. I actually started my career as 644 00:36:48,840 --> 00:36:54,240 Speaker 2: an attorney, So I went to law school, graduated law school. 645 00:36:55,000 --> 00:36:58,120 Speaker 2: My first job was in was in downtown Chicago with 646 00:36:58,200 --> 00:37:03,759 Speaker 2: a large law firm uh called Kirkland and Ellis, And 647 00:37:03,880 --> 00:37:06,520 Speaker 2: I was a private equity m and a attorney. So 648 00:37:06,600 --> 00:37:12,040 Speaker 2: my clients were private equity firms who were investing in businesses, uh, 649 00:37:12,080 --> 00:37:16,880 Speaker 2: primarily through control acquisitions of those businesses. I pretty quickly 650 00:37:16,960 --> 00:37:20,160 Speaker 2: learned that I didn't didn't want to be a lawyer 651 00:37:20,600 --> 00:37:23,000 Speaker 2: for the long term, you know, you know, I kind 652 00:37:23,040 --> 00:37:24,719 Speaker 2: of wished I had figured that out before I spent 653 00:37:24,760 --> 00:37:26,799 Speaker 2: three years going to law school, but but ultimately I 654 00:37:26,800 --> 00:37:29,239 Speaker 2: had to to kind of figure it out on the job. 655 00:37:30,360 --> 00:37:32,680 Speaker 2: And so at that time I had the opportunity to 656 00:37:32,800 --> 00:37:36,480 Speaker 2: join a private equity firm, win Point Partners, who just 657 00:37:36,480 --> 00:37:38,280 Speaker 2: so happens to be one of our our our financial 658 00:37:38,280 --> 00:37:43,680 Speaker 2: sponsors uh and kind of learn uh finance and investing 659 00:37:44,480 --> 00:37:47,399 Speaker 2: on the job. So so did that for a couple 660 00:37:47,440 --> 00:37:51,640 Speaker 2: of years. Uh, you know, kind of pretty quickly again 661 00:37:51,760 --> 00:37:55,960 Speaker 2: learned that you know, while I really appreciated sort of, 662 00:37:56,760 --> 00:38:01,120 Speaker 2: uh the rigor and intensity of of of and and 663 00:38:01,160 --> 00:38:03,680 Speaker 2: sort of the intellectual challenge of what we did there. 664 00:38:04,320 --> 00:38:08,200 Speaker 2: I also sort of pretty quickly learned that the folks 665 00:38:08,360 --> 00:38:12,279 Speaker 2: who are often driving a lot of the value and 666 00:38:12,320 --> 00:38:15,920 Speaker 2: improving businesses are are not, you know, necessarily the investors. 667 00:38:15,920 --> 00:38:19,279 Speaker 2: It's the folks who are running the business, uh and 668 00:38:20,520 --> 00:38:25,040 Speaker 2: actually doing the things that are captured on the PowerPoint 669 00:38:25,080 --> 00:38:28,320 Speaker 2: slides and in the Excel spreadsheets that the actually drive 670 00:38:28,360 --> 00:38:32,040 Speaker 2: the value and create value in the business. And so, 671 00:38:33,080 --> 00:38:35,399 Speaker 2: you know, I realized at that time I really wanted 672 00:38:35,400 --> 00:38:38,040 Speaker 2: to go out and get some operating experience, and so 673 00:38:39,120 --> 00:38:43,240 Speaker 2: had the opportunity to join a private, kind of family 674 00:38:43,280 --> 00:38:45,239 Speaker 2: owned business at that time that was going through a 675 00:38:45,239 --> 00:38:48,520 Speaker 2: pretty significant sort of inflection from an ownership perspective as 676 00:38:48,560 --> 00:38:52,000 Speaker 2: well as a uh sort of transformation perspective in terms 677 00:38:52,040 --> 00:38:55,560 Speaker 2: of where the business was trying to go. And I, 678 00:38:55,640 --> 00:38:58,640 Speaker 2: during that business as CFO, helped help the CEO there 679 00:38:59,480 --> 00:39:02,960 Speaker 2: kind of execute on what he wanted to execute, and 680 00:39:03,000 --> 00:39:05,480 Speaker 2: it was a pretty pretty big success story. So I 681 00:39:05,480 --> 00:39:07,160 Speaker 2: spent you know, kind of five six years doing that. 682 00:39:08,440 --> 00:39:11,920 Speaker 2: Once I Once I departed there, I reconnected with a 683 00:39:11,960 --> 00:39:15,800 Speaker 2: good friend at Winpoint who has been actively investing in 684 00:39:16,000 --> 00:39:21,040 Speaker 2: transportation logistics businesses for some time now and got involved 685 00:39:21,560 --> 00:39:26,279 Speaker 2: with uh ST what was in St. George Logistics, an 686 00:39:26,320 --> 00:39:29,360 Speaker 2: investment that he had made in twenty sixteen, and so 687 00:39:30,360 --> 00:39:34,719 Speaker 2: joined what was then Saint George now STG as a 688 00:39:35,200 --> 00:39:39,200 Speaker 2: kind of a strategy finance, corporate development leader, ultimately became 689 00:39:39,239 --> 00:39:42,759 Speaker 2: the CFO of the business, then became a president chief 690 00:39:42,760 --> 00:39:44,600 Speaker 2: operating officer who hit some of this on the front end, 691 00:39:44,640 --> 00:39:48,200 Speaker 2: and ultimately the CEO in April of twenty twenty five. 692 00:39:48,280 --> 00:39:51,640 Speaker 2: So I've been in the industry or around the industry 693 00:39:51,680 --> 00:39:55,640 Speaker 2: for ten years at Saint George almost and then uh 694 00:39:55,680 --> 00:39:57,440 Speaker 2: and then you know, four or five years before that, 695 00:39:57,560 --> 00:40:01,360 Speaker 2: and a retail distribution business. But I always like to say, 696 00:40:01,480 --> 00:40:05,799 Speaker 2: I mean this sincerely. Folks like yourself, others that I've 697 00:40:05,840 --> 00:40:08,480 Speaker 2: worked with her at STG or met in the industry 698 00:40:08,520 --> 00:40:12,960 Speaker 2: have often forgotten more about transportational logistics than I'll ever know. 699 00:40:14,320 --> 00:40:16,719 Speaker 2: And so I've been pretty fortunate over the course in 700 00:40:16,719 --> 00:40:18,440 Speaker 2: the past ten years to kind of work with some 701 00:40:18,960 --> 00:40:22,200 Speaker 2: really seasoned and experienced and knowledgeable and talented folks. You've 702 00:40:22,600 --> 00:40:24,680 Speaker 2: kind of helped me get to where I am today. 703 00:40:24,840 --> 00:40:27,480 Speaker 1: That's a great arc, career arc that you've had, Thank 704 00:40:27,520 --> 00:40:31,680 Speaker 1: you and much success going forward. So I also, like 705 00:40:31,760 --> 00:40:34,040 Speaker 1: before close, I always like to ask this question as 706 00:40:34,080 --> 00:40:36,720 Speaker 1: the guests of talking Transports about you know, any books 707 00:40:36,719 --> 00:40:39,799 Speaker 1: that you have read that are kind of close to 708 00:40:39,880 --> 00:40:43,319 Speaker 1: your heart, whether it's on transportation, leadership or in your case, 709 00:40:43,400 --> 00:40:44,439 Speaker 1: finance or law. 710 00:40:44,520 --> 00:40:50,239 Speaker 2: Yep. So my days of reading law books are well 711 00:40:50,280 --> 00:40:53,920 Speaker 2: behind me. You know, I went from when I was 712 00:40:53,920 --> 00:40:56,919 Speaker 2: in law school. I went from twenty ten vision, which 713 00:40:56,920 --> 00:41:00,359 Speaker 2: I think is better than perfect, to you know, needing 714 00:41:00,560 --> 00:41:04,200 Speaker 2: thick classes pretty quickly. So so hopefully that's well in 715 00:41:04,200 --> 00:41:05,840 Speaker 2: the review mirror for me at this point. But listen, 716 00:41:05,960 --> 00:41:09,440 Speaker 2: I'm I'll give you some leadership books that are kind 717 00:41:09,440 --> 00:41:12,239 Speaker 2: of near and dear to my heart. Uh and and 718 00:41:12,280 --> 00:41:13,840 Speaker 2: some of these are going to be a little bit cliched, 719 00:41:13,960 --> 00:41:16,360 Speaker 2: so forgive me, but but they're they're they're real in 720 00:41:16,480 --> 00:41:19,279 Speaker 2: terms of what I'm sharing. So good to great is 721 00:41:19,520 --> 00:41:21,680 Speaker 2: Jim Collins, you know kind of business classic is one 722 00:41:21,719 --> 00:41:25,920 Speaker 2: that I find myself, uh, sort of reminding myself of 723 00:41:25,960 --> 00:41:28,120 Speaker 2: things that i've that the knowledge it's important in that 724 00:41:28,160 --> 00:41:32,520 Speaker 2: book pretty frequently, you know, I I I think such 725 00:41:32,560 --> 00:41:36,840 Speaker 2: an important part of uh, making a business successful is 726 00:41:36,880 --> 00:41:40,080 Speaker 2: making sure that you have the right people in the 727 00:41:40,120 --> 00:41:42,839 Speaker 2: right seats from a talent perspective, and and that's kind 728 00:41:42,840 --> 00:41:46,799 Speaker 2: of a an underlying maxim and everything that uh kind 729 00:41:46,800 --> 00:41:50,160 Speaker 2: of all that's in good to great, you know, sort 730 00:41:50,160 --> 00:41:53,280 Speaker 2: of jumping on the back of that, there's a book 731 00:41:53,880 --> 00:41:57,160 Speaker 2: out there called Who. It's written by h a guy 732 00:41:57,200 --> 00:42:00,960 Speaker 2: named Jeff Smart who runs a you know, talent a 733 00:42:01,040 --> 00:42:05,920 Speaker 2: large talent or executive assessment business called gh Smart. In 734 00:42:06,000 --> 00:42:09,399 Speaker 2: that book, you know, it's probably ten fifteen years old 735 00:42:09,440 --> 00:42:11,080 Speaker 2: at this point, maybe even attle bit older than that, 736 00:42:12,239 --> 00:42:14,960 Speaker 2: you know, not necessarily earth shattering in the content, but 737 00:42:15,400 --> 00:42:18,080 Speaker 2: it does a nice job of sort of framing how 738 00:42:18,120 --> 00:42:21,160 Speaker 2: you think about who you bring into the organization from 739 00:42:21,160 --> 00:42:24,440 Speaker 2: a talent perspective. What is it you're trying to sort 740 00:42:24,440 --> 00:42:26,759 Speaker 2: of what are you trying to achieve with the role, 741 00:42:26,960 --> 00:42:28,879 Speaker 2: And then how do you sort of take that brick 742 00:42:29,320 --> 00:42:34,520 Speaker 2: map it onto a person's personality, experience, expertise and you know, 743 00:42:34,560 --> 00:42:37,719 Speaker 2: sort of maximize the potential for that person to be 744 00:42:37,760 --> 00:42:40,000 Speaker 2: successful in the role that you're hiring for. And then 745 00:42:40,760 --> 00:42:43,600 Speaker 2: you know, one other that i'd throw out there, This 746 00:42:43,640 --> 00:42:46,560 Speaker 2: one might might come across as a little a little wonky, 747 00:42:46,680 --> 00:42:53,120 Speaker 2: but it's it's Meditations by Marcus Aurelius, So going back 748 00:42:53,160 --> 00:42:56,480 Speaker 2: a couple thousand years in terms of sort of the 749 00:42:56,520 --> 00:43:00,680 Speaker 2: longevity of that book. But Marcus Relius obviously Roman emperor 750 00:43:02,320 --> 00:43:06,399 Speaker 2: stoic uh kind of philosopher. Uh. And that's been one 751 00:43:06,440 --> 00:43:09,799 Speaker 2: that I short of lean on frequently, particularly when you're 752 00:43:09,800 --> 00:43:13,640 Speaker 2: going through the ups and downs of a cyclical business 753 00:43:14,880 --> 00:43:16,880 Speaker 2: in terms of just maintaining a long term, kind of 754 00:43:16,880 --> 00:43:20,560 Speaker 2: measured view of the world. Uh. So that you cannot 755 00:43:20,640 --> 00:43:23,240 Speaker 2: show up in the best ways for for your customers, 756 00:43:23,280 --> 00:43:24,920 Speaker 2: string employees, for your for your partners. 757 00:43:25,120 --> 00:43:27,480 Speaker 1: Well, I haven't heard of the last two or I 758 00:43:27,480 --> 00:43:29,440 Speaker 1: haven't read the last two, so I'll have to go 759 00:43:29,440 --> 00:43:34,399 Speaker 1: go search those out again, maybe some summer reading. Well, Jeff, 760 00:43:34,400 --> 00:43:35,719 Speaker 1: I really want to thank you for your time in 761 00:43:35,719 --> 00:43:39,160 Speaker 1: Insights today and enjoyed learning more about stg No. 762 00:43:39,320 --> 00:43:43,120 Speaker 2: Thank you. I appreciate, appreciate the opportunity to chat and 763 00:43:43,520 --> 00:43:44,720 Speaker 2: thanks again for your time. 764 00:43:44,760 --> 00:43:46,359 Speaker 1: And I want to thank you for tuning in. If 765 00:43:46,400 --> 00:43:48,880 Speaker 1: you liked the episode, please subscribe and leave a review. 766 00:43:48,920 --> 00:43:51,120 Speaker 1: We've lined up a number of great guests for the podcast, 767 00:43:51,120 --> 00:43:55,279 Speaker 1: so check back to hear conversations with C suite executives, shippers, regulators, 768 00:43:55,280 --> 00:43:58,200 Speaker 1: and decision makers within the freight markets. Also, if you 769 00:43:58,239 --> 00:44:01,040 Speaker 1: want to learn more about the freight transports, check out 770 00:44:01,040 --> 00:44:03,719 Speaker 1: our work on the Bloomberg Terminal at BIG and on 771 00:44:03,760 --> 00:44:06,640 Speaker 1: social media. I'd also like to thank Miriam Trure and 772 00:44:06,760 --> 00:44:09,719 Speaker 1: Adidia some money from our editing team for helping pull 773 00:44:09,760 --> 00:44:12,600 Speaker 1: this podcast together. This is Lee Clascow signing off and 774 00:44:12,640 --> 00:44:15,080 Speaker 1: thanks for talking transports with me. Talk to you next week.