1 00:00:06,080 --> 00:00:09,039 Speaker 1: Hi everyone, this is Lee Klaskow when We're Talking Transports. 2 00:00:09,080 --> 00:00:12,560 Speaker 1: Welcome to Bloomberg Intelligence Talking Transports podcast. I'm your host, 3 00:00:12,920 --> 00:00:17,400 Speaker 1: Lee Klaskow, Senior freight transportation logistics Analysts at Bloomberg Intelligence, 4 00:00:17,640 --> 00:00:21,000 Speaker 1: Bloomberg's in house research arm of almost five hundred analysts 5 00:00:21,040 --> 00:00:24,400 Speaker 1: and strategists around the globe. Before diving in a little 6 00:00:24,400 --> 00:00:27,760 Speaker 1: public service announcement, your support is instrumental to keep bringing 7 00:00:27,800 --> 00:00:31,639 Speaker 1: great guests and conversations to You are listeners, and we 8 00:00:31,720 --> 00:00:34,520 Speaker 1: need your support. So please, if you enjoyed this podcast, 9 00:00:34,720 --> 00:00:37,559 Speaker 1: share it, like it and leave a comment. Also, if 10 00:00:37,560 --> 00:00:39,760 Speaker 1: you have any ideas for future episodes you just want 11 00:00:39,760 --> 00:00:42,960 Speaker 1: to talk transports, please hit me up on the Bloomberg terminal, 12 00:00:43,000 --> 00:00:46,199 Speaker 1: on LinkedIn or on Twitter at Logistics League. Now on 13 00:00:46,240 --> 00:00:49,280 Speaker 1: to our episode we're delighted to have with us today. 14 00:00:49,400 --> 00:00:52,879 Speaker 1: John Jansen, Vice President of Global Logistics at Sandmar, a 15 00:00:52,920 --> 00:00:57,560 Speaker 1: privately held premiere supplier of whossale and printable clothing and accessories. 16 00:00:58,000 --> 00:01:02,680 Speaker 1: John has over thirty years of experience piloting global logistics 17 00:01:02,720 --> 00:01:07,240 Speaker 1: for industry leading companies. In twenty twenty two, he was 18 00:01:07,280 --> 00:01:11,080 Speaker 1: honored by DC Velocity with their rain Maker Award. He 19 00:01:11,200 --> 00:01:16,119 Speaker 1: has served on advisory boards for Nastrak, University of Auburn Logistics, 20 00:01:16,400 --> 00:01:19,920 Speaker 1: and the Parcel Forum. He has participated on numerous panels 21 00:01:19,959 --> 00:01:22,760 Speaker 1: and has been featured as a speaker at several of 22 00:01:23,080 --> 00:01:27,320 Speaker 1: CSCMP and JOC events. Actually, that's I think where John 23 00:01:27,360 --> 00:01:30,200 Speaker 1: and I met years and years ago at a JOC event. 24 00:01:30,720 --> 00:01:34,240 Speaker 1: He's also a graduate from Boise State University, so go Broncos. 25 00:01:35,440 --> 00:01:39,560 Speaker 1: And he's also a doting grandfather. So you are had 26 00:01:39,600 --> 00:01:42,520 Speaker 1: the distinction of being a return guest. So thank you 27 00:01:42,560 --> 00:01:45,000 Speaker 1: so much for joining us again. John. It's great to 28 00:01:45,040 --> 00:01:45,920 Speaker 1: see and hear you. 29 00:01:46,360 --> 00:01:47,480 Speaker 2: Lee. It's great to be back. 30 00:01:47,520 --> 00:01:51,240 Speaker 3: It's certainly challenging times and we've got a few topics 31 00:01:51,240 --> 00:01:52,240 Speaker 3: we could talk about today. 32 00:01:52,920 --> 00:01:53,640 Speaker 1: Absolutely. 33 00:01:53,840 --> 00:01:54,040 Speaker 2: You know. 34 00:01:54,200 --> 00:01:55,840 Speaker 1: One of the reasons why I wanted to have you 35 00:01:55,880 --> 00:01:58,960 Speaker 1: on is, you know, there's a lot of things going 36 00:01:58,960 --> 00:02:02,200 Speaker 1: on with supply chain, with the more protectionist stance coming 37 00:02:02,200 --> 00:02:05,200 Speaker 1: out of the United States, and I love speaking to 38 00:02:05,200 --> 00:02:07,360 Speaker 1: you because you're kind of a straight shooter from all 39 00:02:07,480 --> 00:02:10,200 Speaker 1: the other shippers that I speak with, So you know, 40 00:02:10,240 --> 00:02:12,840 Speaker 1: I really appreciate your honesty and insights. 41 00:02:13,200 --> 00:02:13,760 Speaker 2: Well, thank you. 42 00:02:13,840 --> 00:02:17,920 Speaker 3: It's I mean, in today's world, I mean, all we 43 00:02:17,960 --> 00:02:21,920 Speaker 3: are we're trying to react, engauge and make sure that 44 00:02:21,919 --> 00:02:24,640 Speaker 3: we're able to continue to bring our product in and 45 00:02:24,639 --> 00:02:25,600 Speaker 3: support our customers. 46 00:02:26,840 --> 00:02:29,120 Speaker 1: Okay, and can you like, you know, I gave Sandmar 47 00:02:29,160 --> 00:02:32,239 Speaker 1: a little introduction. It's a privately held company, so many 48 00:02:32,280 --> 00:02:35,040 Speaker 1: people might not know that they actually use it or 49 00:02:35,120 --> 00:02:37,120 Speaker 1: wearing some of your products. So can you talk a 50 00:02:37,120 --> 00:02:38,080 Speaker 1: little bit about Sandmar? 51 00:02:38,480 --> 00:02:38,799 Speaker 2: Sure? 52 00:02:38,919 --> 00:02:41,359 Speaker 3: I mean I always tell people when I'm speaking at 53 00:02:41,360 --> 00:02:44,800 Speaker 3: a conference that we're probably the largest company you've never 54 00:02:44,840 --> 00:02:49,600 Speaker 3: heard of. We are the largest producer and distributor of 55 00:02:49,880 --> 00:02:54,000 Speaker 3: blank apparel to the promotional industry. So you know, it 56 00:02:54,040 --> 00:02:56,440 Speaker 3: goes into a uniform, it goes into the shirt you 57 00:02:56,480 --> 00:03:00,280 Speaker 3: bought at a concert, goes into a fun run, and 58 00:03:00,320 --> 00:03:03,760 Speaker 3: so our product ends up all over the United States 59 00:03:04,120 --> 00:03:06,519 Speaker 3: and ends up but the name stand Mart doesn't show 60 00:03:06,560 --> 00:03:10,040 Speaker 3: up on anything, because we're either producing the product or 61 00:03:10,040 --> 00:03:13,280 Speaker 3: we're distributing a retail brand. And then it goes into 62 00:03:13,440 --> 00:03:16,800 Speaker 3: becoming a uniform in your store and or something that 63 00:03:16,840 --> 00:03:20,480 Speaker 3: you purchased, and so it's a really unique I didn't 64 00:03:20,480 --> 00:03:23,040 Speaker 3: know anything about Sandmar before I joined them nine years ago, 65 00:03:23,440 --> 00:03:25,840 Speaker 3: and then all of a sudden, you know, you realize 66 00:03:25,880 --> 00:03:29,480 Speaker 3: that they're this very very significant player in the logistics 67 00:03:29,480 --> 00:03:32,320 Speaker 3: world and provider of apparel. 68 00:03:33,000 --> 00:03:36,120 Speaker 1: And because of that, you know, you get to see 69 00:03:36,160 --> 00:03:38,080 Speaker 1: and touch a lot of things when it comes to 70 00:03:38,240 --> 00:03:41,480 Speaker 1: freight transportation logistics. Can you talk about your supply chain? 71 00:03:42,120 --> 00:03:45,440 Speaker 3: Sure? I mean you start at the very front end. 72 00:03:46,200 --> 00:03:50,280 Speaker 3: Apparel has long since left manufacturing in the United States, 73 00:03:50,720 --> 00:03:54,560 Speaker 3: and so today we manufacture in twenty five countries around 74 00:03:54,560 --> 00:03:58,160 Speaker 3: the world, and we import the product to East and 75 00:03:58,200 --> 00:04:01,920 Speaker 3: West Coast locations and then we distribute it from one 76 00:04:01,960 --> 00:04:05,720 Speaker 3: of ten distribution centers spread out of across the United States. 77 00:04:06,040 --> 00:04:10,520 Speaker 3: So we are a significant importer. Normally we're in the 78 00:04:10,520 --> 00:04:14,800 Speaker 3: top fifty importers in the United States. And then we 79 00:04:14,880 --> 00:04:19,960 Speaker 3: have a very large intermodal truckload LTL. And our largest 80 00:04:19,960 --> 00:04:22,799 Speaker 3: spend is in the parcel arena. It's the last mile 81 00:04:22,880 --> 00:04:26,680 Speaker 3: from our distribution center to our customer. And our primary 82 00:04:26,720 --> 00:04:28,400 Speaker 3: customer is a B to B customer. 83 00:04:28,720 --> 00:04:29,320 Speaker 2: I mean, we. 84 00:04:29,200 --> 00:04:34,720 Speaker 3: Support sixty five thousand small businesses that are printing and 85 00:04:34,760 --> 00:04:36,880 Speaker 3: delivering products to their customers. 86 00:04:38,240 --> 00:04:41,719 Speaker 1: All right, that's great, And you know you mentioned that 87 00:04:41,839 --> 00:04:44,760 Speaker 1: you're manufacturing I think said in twenty five for countries 88 00:04:44,760 --> 00:04:48,640 Speaker 1: that I hear that five different countries, So is there 89 00:04:48,720 --> 00:04:51,440 Speaker 1: one that is the dominant country. 90 00:04:52,880 --> 00:04:55,039 Speaker 3: Our largest port that we deal with is the port 91 00:04:55,040 --> 00:04:59,160 Speaker 3: of Cortez in Honduras, and so Honduras is our largest 92 00:04:59,160 --> 00:05:02,800 Speaker 3: manufacturing facilit But then spread out across the rest of 93 00:05:02,839 --> 00:05:08,240 Speaker 3: the world is everything from you know, Vietnam to Bangladesh, 94 00:05:08,320 --> 00:05:11,960 Speaker 3: to India, to Pakistan to me and mar to several 95 00:05:12,000 --> 00:05:16,640 Speaker 3: locations in Africa. Good I mean from a China perspective, 96 00:05:17,520 --> 00:05:23,120 Speaker 3: we have sourcing offices in Hong Kong, Dubai, in Honduras, 97 00:05:23,160 --> 00:05:26,839 Speaker 3: and in the United States. But production we have limited 98 00:05:26,880 --> 00:05:30,640 Speaker 3: our production in China to less than probably seven percent 99 00:05:30,680 --> 00:05:34,640 Speaker 3: at this point, and based on recent actions by the administration, 100 00:05:35,040 --> 00:05:38,200 Speaker 3: we'll probably be completely out of China before the end 101 00:05:38,240 --> 00:05:38,640 Speaker 3: of the year. 102 00:05:39,640 --> 00:05:41,720 Speaker 1: I'm assuming those jobs aren't coming back to the United 103 00:05:41,720 --> 00:05:42,360 Speaker 1: States though. 104 00:05:42,279 --> 00:05:46,400 Speaker 3: Right, No, they're not. I mean, if you just think 105 00:05:46,440 --> 00:05:51,880 Speaker 3: about trying to hire people to sew garments, there is 106 00:05:51,920 --> 00:05:54,719 Speaker 3: not enough sewers in the United States to begin to 107 00:05:54,760 --> 00:05:56,200 Speaker 3: support what sanmar. 108 00:05:55,800 --> 00:05:57,279 Speaker 2: Does, right. 109 00:05:57,839 --> 00:06:02,080 Speaker 1: Okay, So you have a very interesting perspective because you're 110 00:06:02,120 --> 00:06:05,560 Speaker 1: involved in a lot of different countries that are impacted 111 00:06:05,600 --> 00:06:08,960 Speaker 1: by the tariffs. So can you talk about you know, 112 00:06:09,920 --> 00:06:14,600 Speaker 1: your I guess your your your inbound supply chain or 113 00:06:14,720 --> 00:06:18,440 Speaker 1: is that considered outbound the stuff coming from that in that? Okay, 114 00:06:18,960 --> 00:06:22,000 Speaker 1: that was right? Your your I told you earlier before 115 00:06:22,040 --> 00:06:26,320 Speaker 1: the call, right, fifty two percent of the time inbound 116 00:06:26,400 --> 00:06:29,800 Speaker 1: supply chain. Can can you talk about how that's changed, 117 00:06:29,839 --> 00:06:35,799 Speaker 1: maybe from pre pandemic pandemic today? 118 00:06:36,200 --> 00:06:40,880 Speaker 3: Sure, you know it's it's where we try to develop 119 00:06:40,960 --> 00:06:44,919 Speaker 3: these long standing relationships with our providers. And so during 120 00:06:44,920 --> 00:06:50,040 Speaker 3: the pandemic, when a lot of major customers were canceling pos, 121 00:06:50,520 --> 00:06:53,760 Speaker 3: we kept our factories going, We kept funding them, we 122 00:06:53,880 --> 00:06:57,200 Speaker 3: kept producing product because we were a firm believer that 123 00:06:57,720 --> 00:07:02,320 Speaker 3: our supply chain prowess lead us out of the pandemic 124 00:07:02,760 --> 00:07:06,520 Speaker 3: and help us jump the industry. And it worked because 125 00:07:06,680 --> 00:07:09,039 Speaker 3: we were not laying off people. They didn't have to 126 00:07:09,080 --> 00:07:12,400 Speaker 3: recall factory workers, and we were because our product, if 127 00:07:12,440 --> 00:07:16,040 Speaker 3: you think about it, it doesn't really age. So we're 128 00:07:16,040 --> 00:07:19,720 Speaker 3: always introducing new styles. But our number one selling polo 129 00:07:19,800 --> 00:07:22,800 Speaker 3: five years ago is our number one selling polo today 130 00:07:23,160 --> 00:07:26,600 Speaker 3: because companies don't like to change their uniforming, and so 131 00:07:28,080 --> 00:07:31,120 Speaker 3: it helped us out from a standpoint that when the 132 00:07:31,160 --> 00:07:35,760 Speaker 3: pandemic finally ended and during the pandemic, our business dropped 133 00:07:35,800 --> 00:07:39,840 Speaker 3: seventy percent. I mean, you think about that, that is 134 00:07:39,880 --> 00:07:44,120 Speaker 3: a horribly scary number because our business is built around 135 00:07:44,120 --> 00:07:47,960 Speaker 3: social gatherings and during the pandemic everything stopped. And so 136 00:07:48,320 --> 00:07:53,400 Speaker 3: we we did start producing ppe, which was a great 137 00:07:53,440 --> 00:07:56,880 Speaker 3: savior and helped out a lot, but we kept our 138 00:07:56,880 --> 00:08:00,520 Speaker 3: factories going. And so that's it go back to the 139 00:08:00,560 --> 00:08:05,040 Speaker 3: overall this private company philosophy that you know, business is 140 00:08:05,080 --> 00:08:08,320 Speaker 3: personal and we want to make sure that we're we're 141 00:08:08,360 --> 00:08:12,840 Speaker 3: operating that way. So you come out of COVID, business 142 00:08:12,920 --> 00:08:15,320 Speaker 3: has gone well, and then you know, we hit the 143 00:08:15,360 --> 00:08:18,120 Speaker 3: next uncertainty. You look at the Red Sea and you 144 00:08:18,160 --> 00:08:20,800 Speaker 3: look at all the challenges that hit the ocean industry, 145 00:08:21,680 --> 00:08:26,120 Speaker 3: and now we're dealing with the new administration and this 146 00:08:26,200 --> 00:08:30,360 Speaker 3: new world order of tariffs and you know, trying to 147 00:08:30,360 --> 00:08:33,120 Speaker 3: bring product back and manufacturing back to the United States. 148 00:08:33,520 --> 00:08:37,559 Speaker 3: And so that literally is the focus of where we're 149 00:08:37,559 --> 00:08:40,319 Speaker 3: at right now is how can we continue to produce 150 00:08:40,920 --> 00:08:43,160 Speaker 3: and have the less impact on our customer. 151 00:08:43,920 --> 00:08:47,719 Speaker 1: And just for clarity, where you manufacture is sand Maar, 152 00:08:48,120 --> 00:08:51,360 Speaker 1: do you own the manufacturing or you you have partners 153 00:08:51,360 --> 00:08:53,080 Speaker 1: that you work with in these other countries. 154 00:08:53,120 --> 00:08:57,440 Speaker 3: So in Honduras we're a joint partner. Everywhere else in 155 00:08:57,440 --> 00:09:01,480 Speaker 3: the world you would call it contract manufacturing, not in 156 00:09:01,520 --> 00:09:05,520 Speaker 3: the typical fashion because normally the people that were manufacturing 157 00:09:05,559 --> 00:09:09,360 Speaker 3: with the only product they've build to Sandmar. So it's 158 00:09:09,720 --> 00:09:12,240 Speaker 3: it's like having our own factories, you know, all these 159 00:09:12,240 --> 00:09:18,440 Speaker 3: different locations. And sand Mar has worked really hard to 160 00:09:18,840 --> 00:09:22,640 Speaker 3: be a very good steward in the apparel industry, an 161 00:09:22,640 --> 00:09:25,160 Speaker 3: industry that doesn't always have the best name for how 162 00:09:25,200 --> 00:09:28,120 Speaker 3: they manufacture and how they treat employees. So in that 163 00:09:28,240 --> 00:09:30,760 Speaker 3: set that we've worked really hard to elevate ourselves so 164 00:09:31,120 --> 00:09:32,400 Speaker 3: that we're at the top of the game. 165 00:09:33,520 --> 00:09:35,600 Speaker 1: And you know, you mentioned about seven percent of your 166 00:09:35,640 --> 00:09:38,760 Speaker 1: production is in China right now, what was that number 167 00:09:38,800 --> 00:09:41,680 Speaker 1: if you can remember back before the pandemic, if. 168 00:09:41,600 --> 00:09:44,080 Speaker 3: You go back to pre damp pandemic, we were probably 169 00:09:44,080 --> 00:09:48,160 Speaker 3: eighteen to twenty percent of our operation was out of China, 170 00:09:48,760 --> 00:09:52,920 Speaker 3: And so it's been a significant shift as we've moved 171 00:09:52,920 --> 00:09:57,319 Speaker 3: that toward Vietnam or we've moved that toward other countries. 172 00:09:57,400 --> 00:10:00,720 Speaker 3: And I mean, if you look at it today, we're 173 00:10:00,760 --> 00:10:04,800 Speaker 3: the second largest apparel distributor to the United States out 174 00:10:04,840 --> 00:10:09,240 Speaker 3: of Africa and so again based on the fact that 175 00:10:09,640 --> 00:10:14,800 Speaker 3: there's been trade friendly agreements established that allow us to 176 00:10:15,480 --> 00:10:17,720 Speaker 3: take production to those types of locations. 177 00:10:18,600 --> 00:10:22,080 Speaker 1: And you know, so to get to zero, where does 178 00:10:22,120 --> 00:10:22,880 Speaker 1: the production go. 179 00:10:25,400 --> 00:10:26,880 Speaker 2: You know, we'll be shifting to. 180 00:10:28,800 --> 00:10:30,960 Speaker 3: Probably add you know, adding more to places that we 181 00:10:31,040 --> 00:10:35,000 Speaker 3: already are and then we're looking at countries like Jordan, 182 00:10:35,840 --> 00:10:40,360 Speaker 3: We're looking at countries like Egypt, and we're looking at 183 00:10:40,400 --> 00:10:45,600 Speaker 3: maybe increasing the volume in Honduras and Latin America and 184 00:10:46,000 --> 00:10:51,240 Speaker 3: locations like Haiti. So it and one of the benefits 185 00:10:51,240 --> 00:10:54,200 Speaker 3: of those are it's a very short supply chain and 186 00:10:54,480 --> 00:11:00,200 Speaker 3: we're able to claim a KAFTA certificate because we export 187 00:11:00,280 --> 00:11:04,520 Speaker 3: US yarn into those regions, produce product and bring it 188 00:11:04,559 --> 00:11:08,160 Speaker 3: back to the United States. So it's, uh, it's a 189 00:11:08,200 --> 00:11:11,320 Speaker 3: relatively stable from a tariff position. 190 00:11:11,920 --> 00:11:12,079 Speaker 2: Right. 191 00:11:12,120 --> 00:11:13,559 Speaker 1: Can you share what CAFTA is. 192 00:11:14,600 --> 00:11:16,960 Speaker 2: It's the it's. 193 00:11:17,120 --> 00:11:18,280 Speaker 1: You don't have to say with you, I don't I 194 00:11:18,280 --> 00:11:19,199 Speaker 1: don't know what it's stands. 195 00:11:19,440 --> 00:11:23,520 Speaker 3: But what is America free trade? Okay, it's geared around 196 00:11:23,559 --> 00:11:26,960 Speaker 3: the fact that we're as long as we're providing the 197 00:11:26,960 --> 00:11:30,280 Speaker 3: product from the United States and then they're just providing labor, 198 00:11:30,640 --> 00:11:32,560 Speaker 3: then we can bring it back in at a very 199 00:11:32,559 --> 00:11:34,520 Speaker 3: low duty rate, if any duty rate at all. 200 00:11:35,840 --> 00:11:39,240 Speaker 1: Okay, So you're so you're supplying the raw materials to 201 00:11:39,360 --> 00:11:41,160 Speaker 1: all these different places. 202 00:11:40,960 --> 00:11:44,080 Speaker 3: Only place, you know, we control the raw materials to 203 00:11:44,200 --> 00:11:48,240 Speaker 3: lots of places, but like in Honduras, we provide the garment, 204 00:11:48,480 --> 00:11:51,760 Speaker 3: We provide the yarn and the fabric going in and 205 00:11:51,800 --> 00:11:52,920 Speaker 3: so then they can produce. 206 00:11:53,000 --> 00:11:56,160 Speaker 2: So when bring it back to the United States, I. 207 00:11:56,160 --> 00:11:58,920 Speaker 1: Mean, you named a lot of interesting places to do business. 208 00:11:59,200 --> 00:12:02,400 Speaker 1: It must be very, very very interesting to do. 209 00:12:02,360 --> 00:12:08,560 Speaker 3: So it is, it's it's it's always, it's really rewarding. 210 00:12:09,920 --> 00:12:12,840 Speaker 3: At a conference at one point, one of our standmar 211 00:12:12,920 --> 00:12:18,000 Speaker 3: executives was asked, when will you quit chasing poverty? And 212 00:12:19,440 --> 00:12:21,960 Speaker 3: the moderator literally looked at our said, hey, you don't 213 00:12:21,960 --> 00:12:24,600 Speaker 3: have to answer that, And the answer was, we want 214 00:12:24,600 --> 00:12:28,360 Speaker 3: to answer that because we're making a difference. 215 00:12:28,480 --> 00:12:30,280 Speaker 2: When you look at countries. 216 00:12:30,280 --> 00:12:34,320 Speaker 3: Like you know, Madagascar and Tons and thea and you 217 00:12:34,360 --> 00:12:37,800 Speaker 3: look at the social economic growth in those communities that 218 00:12:37,840 --> 00:12:43,840 Speaker 3: have been provided by stable, good jobs, it's incredible. I've 219 00:12:43,880 --> 00:12:47,160 Speaker 3: been to Hunduras multiple times and to see the impact 220 00:12:47,200 --> 00:12:53,520 Speaker 3: of providing housing and a stable job for the for 221 00:12:53,600 --> 00:12:57,120 Speaker 3: the people of that country. If if they have education 222 00:12:57,760 --> 00:13:00,640 Speaker 3: and we're building schools down there, If they have education 223 00:13:00,760 --> 00:13:03,960 Speaker 3: and they have healthcare and they have a job, they're 224 00:13:04,000 --> 00:13:06,160 Speaker 3: not going to show up on the southern border. And 225 00:13:06,240 --> 00:13:10,160 Speaker 3: so it really is making an impact outside of the 226 00:13:10,160 --> 00:13:13,439 Speaker 3: four walls of the factories that we're in, and it's 227 00:13:13,480 --> 00:13:16,600 Speaker 3: something that's it's very rewarding to work for a company 228 00:13:16,600 --> 00:13:17,400 Speaker 3: that's invested in that. 229 00:13:18,120 --> 00:13:21,080 Speaker 1: Yeah, it's great to be part of organizations that give back. 230 00:13:21,240 --> 00:13:24,720 Speaker 1: Bloomberg is definitely one of those organizations as well. Let's 231 00:13:24,760 --> 00:13:27,319 Speaker 1: talk transports, because it's the name of the podcast. Tell 232 00:13:27,400 --> 00:13:30,439 Speaker 1: us what you're doing, Like, so, I'm assuming you use 233 00:13:30,720 --> 00:13:33,599 Speaker 1: predominantly ocean to get your product here back to the 234 00:13:33,679 --> 00:13:34,360 Speaker 1: United States. 235 00:13:34,520 --> 00:13:34,880 Speaker 2: We do. 236 00:13:35,160 --> 00:13:38,400 Speaker 3: The very first point that hit was when the tariffs 237 00:13:38,400 --> 00:13:41,800 Speaker 3: first came out. The ten percent took effect in a 238 00:13:41,880 --> 00:13:44,840 Speaker 3: very short time period. So it was like full court pressure. 239 00:13:45,200 --> 00:13:49,240 Speaker 3: Can we get product on the water before the tariffs hit? 240 00:13:49,920 --> 00:13:53,240 Speaker 3: And are we able to make sure that we're doing 241 00:13:53,320 --> 00:13:56,440 Speaker 3: that to save some money. And then the other side 242 00:13:56,480 --> 00:13:59,679 Speaker 3: of it is as this supply chain changes and we 243 00:13:59,720 --> 00:14:03,040 Speaker 3: move product from one country to another, that impacts all 244 00:14:03,080 --> 00:14:05,840 Speaker 3: of our ocean sourcing. And so we've had to be 245 00:14:06,520 --> 00:14:11,080 Speaker 3: really leaning into some relationships with our ocean carriers. So 246 00:14:11,600 --> 00:14:15,600 Speaker 3: normally not we would contract for specific lanes, and we're 247 00:14:15,600 --> 00:14:17,959 Speaker 3: telling them, you got to be flexible this year. You 248 00:14:18,000 --> 00:14:22,160 Speaker 3: know today we may be manufacturing here. Tomorrow we may 249 00:14:22,200 --> 00:14:26,520 Speaker 3: need manufacturing here, and we need your support. And then 250 00:14:26,720 --> 00:14:29,760 Speaker 3: a lot of it comes down to some of these 251 00:14:30,520 --> 00:14:33,240 Speaker 3: a tariff when they say that expires in ninety days, 252 00:14:33,840 --> 00:14:35,760 Speaker 3: well then we need to do whatever we can do 253 00:14:35,840 --> 00:14:38,680 Speaker 3: to try to move the product and get it on 254 00:14:38,800 --> 00:14:41,920 Speaker 3: the water or to the United States before those tariffs 255 00:14:41,960 --> 00:14:44,840 Speaker 3: are implicated. Because if you look at the cost of 256 00:14:44,880 --> 00:14:48,160 Speaker 3: the tariff times of product, it allows a pretty good 257 00:14:48,160 --> 00:14:50,520 Speaker 3: freight budget to try and move some of this stuff. 258 00:14:51,520 --> 00:14:54,320 Speaker 1: Right and for your ocean capacity, are you going through 259 00:14:54,400 --> 00:14:57,480 Speaker 1: freight forwarders? Are you going directly to the liners? 260 00:14:58,280 --> 00:15:01,840 Speaker 3: We've contracted ninety five percent z of our volume direct 261 00:15:01,960 --> 00:15:07,480 Speaker 3: and our belief is that that and we keep like 262 00:15:07,600 --> 00:15:10,400 Speaker 3: the five percent out for some of the strange places 263 00:15:10,760 --> 00:15:15,440 Speaker 3: where maybe a forwarder has expertise over a direct relationship, 264 00:15:15,880 --> 00:15:20,200 Speaker 3: but the fact that we've built long term relationships. This 265 00:15:20,400 --> 00:15:25,600 Speaker 3: last year, we spent three days in Taiwan visiting with 266 00:15:26,000 --> 00:15:29,120 Speaker 3: two of our carriers there Earlier in the year, we 267 00:15:29,160 --> 00:15:32,640 Speaker 3: spent time in France visiting with one of our strategic partners, 268 00:15:33,000 --> 00:15:35,800 Speaker 3: and so the fact that we're we're trying to edge 269 00:15:35,800 --> 00:15:38,320 Speaker 3: it go all the way to their corporate headquarters and 270 00:15:38,360 --> 00:15:42,160 Speaker 3: then spend time with them. We believe investing that relationship 271 00:15:42,200 --> 00:15:44,600 Speaker 3: really pays off at the end of the day. 272 00:15:45,600 --> 00:15:49,000 Speaker 1: You know, the spot market's really weak recently, it's down 273 00:15:49,000 --> 00:15:53,000 Speaker 1: around sixty five seventy five percent from the July peaks. 274 00:15:54,160 --> 00:15:57,360 Speaker 1: You know, obviously you're you're contracting, so you're not really 275 00:15:57,360 --> 00:15:59,960 Speaker 1: playing that much in the spot market. Can you tell 276 00:16:00,000 --> 00:16:03,240 Speaker 1: talk about, you know, your bid season this year. Did 277 00:16:03,280 --> 00:16:06,040 Speaker 1: you did you have are you paying more? Are you 278 00:16:06,120 --> 00:16:06,880 Speaker 1: paying less? 279 00:16:07,360 --> 00:16:10,560 Speaker 3: You know, we we we relatively held serve this year 280 00:16:11,560 --> 00:16:14,400 Speaker 3: as far as from the contract where we were toward 281 00:16:14,440 --> 00:16:18,160 Speaker 3: the end of last year. And our goal is to 282 00:16:18,240 --> 00:16:21,880 Speaker 3: try to be within a couple hundred dollars of the 283 00:16:21,920 --> 00:16:25,360 Speaker 3: big boys that are out there, because you know, that 284 00:16:25,360 --> 00:16:28,320 Speaker 3: puts us in a great position that you know, the 285 00:16:28,360 --> 00:16:32,680 Speaker 3: carriers still making money and by us playing what I 286 00:16:32,760 --> 00:16:35,880 Speaker 3: call the long game, we're not chasing the spot market. 287 00:16:36,240 --> 00:16:40,240 Speaker 3: And so when we have requests and capacity can be 288 00:16:40,320 --> 00:16:43,320 Speaker 3: king at times. Right now, capacity is king, So we 289 00:16:43,360 --> 00:16:46,960 Speaker 3: want to make sure that our containers are getting on 290 00:16:47,000 --> 00:16:50,800 Speaker 3: the vessels, and that only happens really either one if 291 00:16:50,800 --> 00:16:53,680 Speaker 3: you're a mega shipper and can leverage volume, or two 292 00:16:54,200 --> 00:16:55,440 Speaker 3: we leverage relationship. 293 00:16:55,760 --> 00:16:58,880 Speaker 1: It's interesting you said you're usually like a top fifty importer, 294 00:16:59,000 --> 00:17:00,480 Speaker 1: but you're not one of the boys. 295 00:17:01,640 --> 00:17:03,720 Speaker 3: I mean, it's there's such a drop off when you 296 00:17:03,720 --> 00:17:09,680 Speaker 3: go Amazon, Walmart, Home Depot, all those guys, and they're 297 00:17:09,720 --> 00:17:12,760 Speaker 3: talking hundreds of thousands of containers and then you drop 298 00:17:12,840 --> 00:17:15,840 Speaker 3: down to the mid tiers. And we're a solid mid 299 00:17:15,840 --> 00:17:19,680 Speaker 3: tier player. I mean, we we certainly have enough volume 300 00:17:19,680 --> 00:17:23,480 Speaker 3: that did that gets everybody's attention, but we're we're not 301 00:17:23,600 --> 00:17:27,240 Speaker 3: anywhere near the the megas like Costco and Walmart and 302 00:17:27,640 --> 00:17:29,159 Speaker 3: Home Goods and all those guys. 303 00:17:30,320 --> 00:17:34,040 Speaker 1: And is your is your freight kind of balance because 304 00:17:34,040 --> 00:17:37,119 Speaker 1: you're bringing in the yarn and all that stuff to 305 00:17:37,240 --> 00:17:38,320 Speaker 1: some of these places. 306 00:17:38,720 --> 00:17:42,480 Speaker 3: Uh, trans Pacific and out of the into the East Coast. 307 00:17:42,720 --> 00:17:46,320 Speaker 3: We're definitely one way, so we're not exporting anything. Our 308 00:17:46,359 --> 00:17:50,480 Speaker 3: only exports go to Latin America, So we do some 309 00:17:50,600 --> 00:17:54,280 Speaker 3: to Europe, really small amounts, but that comes from Honduras. 310 00:17:54,320 --> 00:17:57,919 Speaker 3: So we're a we're a one way shipper, but where 311 00:17:58,040 --> 00:18:03,280 Speaker 3: we attract value is we tell them three things. You know, One, 312 00:18:03,520 --> 00:18:07,040 Speaker 3: our volumes year round. We're not a big peak season shipper. Two, 313 00:18:07,560 --> 00:18:10,359 Speaker 3: we are going to be a good steward of your asset, 314 00:18:10,600 --> 00:18:13,080 Speaker 3: so when it comes to the United States, we unload it, 315 00:18:13,400 --> 00:18:16,639 Speaker 3: we put it into our transload program and give it 316 00:18:16,680 --> 00:18:19,600 Speaker 3: back to you. And three we've pay our bills on time. 317 00:18:20,080 --> 00:18:23,360 Speaker 3: So if we can do those three things, we think 318 00:18:23,400 --> 00:18:25,360 Speaker 3: it makes us a very attractive shipper. 319 00:18:25,640 --> 00:18:25,840 Speaker 2: Right. 320 00:18:26,240 --> 00:18:29,840 Speaker 1: You know, with the tariffs, you're talking about telling your 321 00:18:30,119 --> 00:18:32,679 Speaker 1: your your partners on the water that you need to 322 00:18:32,680 --> 00:18:35,719 Speaker 1: be flexible. Where do you see the long term shift? 323 00:18:35,880 --> 00:18:40,600 Speaker 1: Do you do you guys see yourself consolidating to other places. 324 00:18:40,800 --> 00:18:42,800 Speaker 1: I know you mentioned you're you're you're in a lot 325 00:18:42,800 --> 00:18:46,960 Speaker 1: of different places, but like, are there areas where you 326 00:18:47,000 --> 00:18:52,439 Speaker 1: can see you growing at the cost of other geographic locations. 327 00:18:52,760 --> 00:18:56,880 Speaker 3: I think the Latin American countries of Honduras and Haiti 328 00:18:56,920 --> 00:19:01,760 Speaker 3: will continue to garnish volume. I think the Vietnams of 329 00:19:01,800 --> 00:19:08,400 Speaker 3: the world, the India, Bangladesh, Pakistan, the Jordan and Egypt. 330 00:19:08,760 --> 00:19:10,840 Speaker 3: I think those are all going to continue to be 331 00:19:11,560 --> 00:19:16,720 Speaker 3: areas that the tariffs hopefully are going to be minimal. 332 00:19:17,119 --> 00:19:21,560 Speaker 3: I mean, we are making decisions about Africa, and that's 333 00:19:21,600 --> 00:19:25,600 Speaker 3: a tough decision because the AGOA, which is the African 334 00:19:25,680 --> 00:19:31,520 Speaker 3: Growth and Opportunity Act, expires in September and we have 335 00:19:31,600 --> 00:19:35,480 Speaker 3: to try to decide do we stay in those AGOA 336 00:19:35,560 --> 00:19:40,480 Speaker 3: countries or do we leave? And those are discussions that 337 00:19:40,200 --> 00:19:43,520 Speaker 3: we're having on a day to day basis right now, 338 00:19:43,840 --> 00:19:46,960 Speaker 3: because it's kind of before we jumped on here, you're 339 00:19:47,000 --> 00:19:51,639 Speaker 3: trying to predict the direction and the bipartisanship of the 340 00:19:51,680 --> 00:19:55,199 Speaker 3: administration in Congress, and so we're not certain on some 341 00:19:55,240 --> 00:19:55,800 Speaker 3: of those things. 342 00:19:55,960 --> 00:19:58,560 Speaker 1: And so let's talk Turkey. So the tariffs, what has 343 00:19:58,640 --> 00:20:03,119 Speaker 1: been the impact to business? If from a cost perspective, 344 00:20:03,760 --> 00:20:06,320 Speaker 1: and you know what you're seeing your customers do. 345 00:20:07,240 --> 00:20:10,200 Speaker 3: So if you were to do worst case and worst 346 00:20:10,280 --> 00:20:13,439 Speaker 3: case be is that all the reciprocal terrorists were put 347 00:20:13,480 --> 00:20:16,679 Speaker 3: into place as announced back on whatever the date was, 348 00:20:18,160 --> 00:20:21,880 Speaker 3: that would be a hundreds of millions of dollars impact 349 00:20:23,400 --> 00:20:26,080 Speaker 3: to a company like us. Now, we don't think any 350 00:20:26,119 --> 00:20:27,760 Speaker 3: of that. We don't think that's the level what's going 351 00:20:27,800 --> 00:20:32,119 Speaker 3: to hit. So, I mean we think that based on 352 00:20:32,160 --> 00:20:36,600 Speaker 3: our supply chain based on inventory that we've already imported. 353 00:20:37,080 --> 00:20:40,040 Speaker 3: We think that we can minimize the impact to our customers. 354 00:20:40,480 --> 00:20:44,240 Speaker 3: We think it's you know, we've taken We've announced once 355 00:20:44,800 --> 00:20:49,520 Speaker 3: relatively small increase going into starting in June, and we 356 00:20:49,600 --> 00:20:51,600 Speaker 3: hope that's the only increase we take for the year. 357 00:20:52,720 --> 00:20:56,080 Speaker 3: So again, we're we're banking on the fact that we 358 00:20:56,160 --> 00:21:01,919 Speaker 3: can manage the supply chain and the tariffs don't go wild. 359 00:21:02,440 --> 00:21:05,200 Speaker 1: So are you able to share about, you know, roughly 360 00:21:05,240 --> 00:21:07,919 Speaker 1: what that increase was we were going to get. 361 00:21:07,800 --> 00:21:08,159 Speaker 2: Out with it. 362 00:21:08,359 --> 00:21:10,320 Speaker 3: We came out with a three and a half percent 363 00:21:10,400 --> 00:21:14,760 Speaker 3: increase on some of our products, not all of the products, 364 00:21:15,000 --> 00:21:18,040 Speaker 3: and we think that's the industry. We think that's a 365 00:21:18,160 --> 00:21:21,640 Speaker 3: number that we can support and we can operate within. 366 00:21:22,320 --> 00:21:26,320 Speaker 3: And again that we want to play the long game 367 00:21:26,320 --> 00:21:29,520 Speaker 3: as a company. And so the fact that we can 368 00:21:29,560 --> 00:21:32,840 Speaker 3: try to provide stable product and pricing to our customers 369 00:21:33,920 --> 00:21:35,760 Speaker 3: makes it really a much better deal. 370 00:21:36,560 --> 00:21:39,640 Speaker 1: And even though you're you're you're you're announcing these increases, 371 00:21:40,160 --> 00:21:42,200 Speaker 1: is it still hurting on the margin side, because maybe 372 00:21:42,240 --> 00:21:45,560 Speaker 1: you're not willing or you're not wanting to pass off 373 00:21:46,080 --> 00:21:47,640 Speaker 1: all those costs. 374 00:21:47,880 --> 00:21:50,840 Speaker 3: Yeah, And and I think we have to really lean 375 00:21:51,600 --> 00:21:56,399 Speaker 3: on our supply chain execution and our suppliers and us 376 00:21:56,800 --> 00:22:01,080 Speaker 3: our carriers and trying to put together the programs that 377 00:22:01,160 --> 00:22:03,439 Speaker 3: allow us to continue to do what we do. If 378 00:22:03,480 --> 00:22:07,160 Speaker 3: you're looking at right now, ocean volume is down. I mean, 379 00:22:07,240 --> 00:22:11,919 Speaker 3: carriers have had multiple blank sailings. The volume coming from 380 00:22:12,040 --> 00:22:14,919 Speaker 3: China's dried up, and so the carriers are trying to 381 00:22:15,000 --> 00:22:18,760 Speaker 3: drive capacity at this point by removing volume from the marketplace. 382 00:22:19,200 --> 00:22:21,920 Speaker 3: And so how does that play out long term? 383 00:22:23,119 --> 00:22:23,679 Speaker 2: I don't know. 384 00:22:25,440 --> 00:22:27,680 Speaker 3: I would much rather be an importer than an exporter 385 00:22:27,800 --> 00:22:31,120 Speaker 3: right now. I think the export market could really suffer 386 00:22:31,160 --> 00:22:36,280 Speaker 3: based upon the reciprocal tariffs from the other end and 387 00:22:36,400 --> 00:22:38,440 Speaker 3: the availability of equipment coming in. 388 00:22:39,240 --> 00:22:41,960 Speaker 1: And I know you like to be consistent with your 389 00:22:42,000 --> 00:22:44,840 Speaker 1: supply chains, and you know you kind of mentioned your 390 00:22:44,840 --> 00:22:48,560 Speaker 1: inventories are pretty good. Are you guys at a position to, 391 00:22:49,119 --> 00:22:53,639 Speaker 1: you know, if the tariffs get a little crazy, to 392 00:22:53,760 --> 00:22:57,919 Speaker 1: hold off on taking on new inventory for a while. 393 00:22:58,400 --> 00:23:01,840 Speaker 3: There are some areas think that you know, we've looked at. 394 00:23:01,840 --> 00:23:06,040 Speaker 3: How do you can you postpone using a bonded warehouse? 395 00:23:07,800 --> 00:23:12,680 Speaker 3: Can you postpone by delaying orders that only happens only 396 00:23:12,800 --> 00:23:16,080 Speaker 3: can work for so long, because the key to our 397 00:23:16,119 --> 00:23:19,879 Speaker 3: business is available inventory, and especially for some of the 398 00:23:19,960 --> 00:23:24,960 Speaker 3: larger orders. When the Sacramento Kings call and they want 399 00:23:25,000 --> 00:23:28,080 Speaker 3: a T shirt on every chair in the arena for 400 00:23:28,119 --> 00:23:31,040 Speaker 3: a playoff game, well, there's one place that can do that, 401 00:23:31,240 --> 00:23:33,840 Speaker 3: it's us. And to do that, we have to have inventory. 402 00:23:34,200 --> 00:23:37,560 Speaker 3: So our goal is that we're going to continue to 403 00:23:37,640 --> 00:23:40,640 Speaker 3: keep inventory on hand to support our business. 404 00:23:41,119 --> 00:23:44,360 Speaker 1: Right okay, and so if you know, if we can 405 00:23:44,520 --> 00:23:48,840 Speaker 1: change gears and talk about your your domestic supply chains. 406 00:23:49,119 --> 00:23:50,880 Speaker 1: You know you mentioned I think you said you had 407 00:23:50,880 --> 00:23:55,399 Speaker 1: ten distribution or warehouses across the country. You mentioned the 408 00:23:55,520 --> 00:23:59,439 Speaker 1: use particularly more parcel. Can you talk about, you know, 409 00:23:59,560 --> 00:24:02,000 Speaker 1: what you're doing the parcel market. Do you just use 410 00:24:02,359 --> 00:24:04,600 Speaker 1: the big players like the FedEx's and the ups is 411 00:24:04,800 --> 00:24:07,880 Speaker 1: or are you using some of these Gay Economies providers 412 00:24:08,200 --> 00:24:12,040 Speaker 1: or other alternatives that are out there in the parcel world. 413 00:24:12,160 --> 00:24:16,720 Speaker 3: Sure, we've had a long, long standing relationship with UPS 414 00:24:16,760 --> 00:24:22,320 Speaker 3: and so they are our primary provider by far. With 415 00:24:22,440 --> 00:24:26,160 Speaker 3: that said, we do utilize some of the regional carriers 416 00:24:26,560 --> 00:24:31,280 Speaker 3: in the marketplace where the regional carrier can provide us 417 00:24:31,359 --> 00:24:35,240 Speaker 3: a service advantage, either like a one day time in 418 00:24:35,280 --> 00:24:39,080 Speaker 3: transit advantage or in that type of setting. I think 419 00:24:39,800 --> 00:24:44,679 Speaker 3: as you look at the parcel industry, it's a crazy landscape. 420 00:24:44,720 --> 00:24:47,479 Speaker 3: Right now, UPS announced they were going to lay off 421 00:24:47,480 --> 00:24:54,200 Speaker 3: twenty thousand employees close seventy four facilities. That's a significant impact. Now, 422 00:24:54,320 --> 00:24:57,320 Speaker 3: the good news is because of the fact that we've 423 00:24:57,359 --> 00:25:01,879 Speaker 3: had a strategic relationship. We've been working with them on 424 00:25:02,080 --> 00:25:05,320 Speaker 3: how to make sure there's the least amount of impact 425 00:25:05,320 --> 00:25:08,639 Speaker 3: to Sandmar on our customers. But at the same time, 426 00:25:09,160 --> 00:25:12,119 Speaker 3: we have to look at some of the other solutions 427 00:25:12,119 --> 00:25:15,400 Speaker 3: that are out there, and the regional marketplace is growing. 428 00:25:15,720 --> 00:25:19,000 Speaker 3: There's players in that space that I think are going 429 00:25:19,119 --> 00:25:23,239 Speaker 3: to be more competitive, and I think at the end 430 00:25:23,240 --> 00:25:26,440 Speaker 3: of the day, you've got a couple of very large, 431 00:25:27,320 --> 00:25:31,719 Speaker 3: looming companies that as they enter the parcel world, they 432 00:25:31,760 --> 00:25:33,360 Speaker 3: could be disruptors in the next. 433 00:25:33,160 --> 00:25:33,920 Speaker 2: Two to three years. 434 00:25:34,320 --> 00:25:37,959 Speaker 3: And those are Amazon and the United States Postal Service. 435 00:25:38,359 --> 00:25:41,960 Speaker 3: And I think one of those two has the potential 436 00:25:42,000 --> 00:25:43,160 Speaker 3: to be a serious disruptor. 437 00:25:43,600 --> 00:25:47,879 Speaker 1: Yeah, no, absolutely, it may take some time from the 438 00:25:47,920 --> 00:25:48,919 Speaker 1: Amazon side. 439 00:25:49,119 --> 00:25:50,600 Speaker 2: From both Yeah, do you. 440 00:25:50,920 --> 00:25:52,760 Speaker 1: Guys leverage the US Postal Service? 441 00:25:53,560 --> 00:25:58,320 Speaker 3: We do. I just recently got back from where were 442 00:25:58,359 --> 00:26:01,040 Speaker 3: we were national and we met with US Postal Service 443 00:26:01,119 --> 00:26:05,480 Speaker 3: and that they are certainly their goal is to become 444 00:26:05,640 --> 00:26:10,680 Speaker 3: more of a parcel carrier. They have to fight themselves 445 00:26:11,840 --> 00:26:16,720 Speaker 3: to become more of a parcel company. And I think 446 00:26:16,760 --> 00:26:21,920 Speaker 3: their former Postmaster General de Joy was very committed to 447 00:26:21,960 --> 00:26:26,800 Speaker 3: the parcel industry. I think the question is will that 448 00:26:27,000 --> 00:26:30,600 Speaker 3: carry on and then can they do what it takes 449 00:26:31,320 --> 00:26:37,760 Speaker 3: to become a parcel carrier, both in technology, equipment, infrastructure 450 00:26:38,440 --> 00:26:43,159 Speaker 3: and all those things. And I think they can. I 451 00:26:43,200 --> 00:26:47,800 Speaker 3: think it's probably in that one to six pound arena 452 00:26:49,840 --> 00:26:52,240 Speaker 3: and I think it's more of a B two C play, 453 00:26:53,359 --> 00:26:56,000 Speaker 3: But I do think that they have the ability to 454 00:26:56,400 --> 00:26:58,200 Speaker 3: impact the market absolutely. 455 00:26:59,359 --> 00:27:02,199 Speaker 1: And do you guys, I mean, do you guys go 456 00:27:02,280 --> 00:27:05,480 Speaker 1: through Amazon? Is Amazon? Are you on Amazon? And Sanmar 457 00:27:05,560 --> 00:27:06,200 Speaker 1: on Amazon? 458 00:27:06,440 --> 00:27:10,440 Speaker 3: We are on Amazon as an Amazon, We're on the 459 00:27:10,480 --> 00:27:15,359 Speaker 3: Amazon Seller. It's a smaller percentage of our business, but 460 00:27:15,440 --> 00:27:17,639 Speaker 3: we we do, and then we deal with them in 461 00:27:17,680 --> 00:27:21,480 Speaker 3: a couple of other their business segments. But yeah, it's 462 00:27:21,480 --> 00:27:24,520 Speaker 3: certainly is an area that we're we've explored we can. 463 00:27:24,600 --> 00:27:27,920 Speaker 3: We're primarily B to B so the B two C 464 00:27:28,160 --> 00:27:31,119 Speaker 3: is not a major market for us, but we've explored it. 465 00:27:31,440 --> 00:27:35,640 Speaker 3: And Amazon as a carrier is an interesting perspective. We've 466 00:27:35,680 --> 00:27:38,879 Speaker 3: been approached by their intermodal and their truckload. We've not 467 00:27:39,000 --> 00:27:42,919 Speaker 3: been approached by their parcel division yet. And from an 468 00:27:42,920 --> 00:27:47,840 Speaker 3: intermodal and truckload, our volumes aren't going to the locations 469 00:27:47,840 --> 00:27:51,600 Speaker 3: that are best to where they're looking for volume, and 470 00:27:52,320 --> 00:27:56,480 Speaker 3: we're in the same boat there. I would rather work 471 00:27:56,600 --> 00:27:59,960 Speaker 3: with the JB Hunts and the Schneiders of the world 472 00:28:00,400 --> 00:28:06,000 Speaker 3: and have consistent, committed relationships then diving into the spot 473 00:28:06,080 --> 00:28:09,120 Speaker 3: market and saving a few hundred dollars on a container 474 00:28:10,000 --> 00:28:11,000 Speaker 3: to the West to East. 475 00:28:12,480 --> 00:28:14,840 Speaker 1: Yeah, it seems like those offerings for Amazon and more 476 00:28:14,840 --> 00:28:19,160 Speaker 1: commoditized than you know, folks that need that higher level 477 00:28:19,359 --> 00:28:20,800 Speaker 1: of service and consistency. 478 00:28:20,960 --> 00:28:23,440 Speaker 3: I think if you're a major shipper and you're trying 479 00:28:23,480 --> 00:28:25,600 Speaker 3: to get back to the east, the West coast, or 480 00:28:25,640 --> 00:28:28,640 Speaker 3: you're trying to reposition equipment to where Amazon is trying 481 00:28:28,640 --> 00:28:31,640 Speaker 3: to get empties back, I think it's a great opportunity. 482 00:28:31,920 --> 00:28:37,080 Speaker 3: And I think that they're marketing that and some shippers 483 00:28:37,080 --> 00:28:39,800 Speaker 3: will be able to take advantage of it. That's not 484 00:28:39,880 --> 00:28:44,120 Speaker 3: really our game, so but but we certainly have had discussions. 485 00:28:45,560 --> 00:28:48,440 Speaker 1: You know, a lot of these parcel carriers on their calls, 486 00:28:48,640 --> 00:28:50,760 Speaker 1: they talk about pricing, and you know how they're trying 487 00:28:50,760 --> 00:28:55,720 Speaker 1: to increase pricing, whether through service or other means. You know, obviously, 488 00:28:55,800 --> 00:28:57,800 Speaker 1: you know you mentioned you're a big shipper, especially with 489 00:28:57,840 --> 00:29:00,880 Speaker 1: the UPS and some others. Where's icing been for you? 490 00:29:00,920 --> 00:29:04,320 Speaker 1: What have I mean, I'm assuming you're not paying the GRI. 491 00:29:04,360 --> 00:29:08,320 Speaker 3: I well, it's it's what's interesting now rating for those 492 00:29:08,320 --> 00:29:12,000 Speaker 3: that don't. You know, we've we've signed some long term 493 00:29:12,000 --> 00:29:15,760 Speaker 3: contracts and uh, we're certainly not going to pay the 494 00:29:15,800 --> 00:29:20,200 Speaker 3: mark gr I But I think the challenges are that 495 00:29:22,040 --> 00:29:25,840 Speaker 3: carriers have learned, and the parcel industry started it, and 496 00:29:25,880 --> 00:29:30,480 Speaker 3: now it's carried into other industries ascessorials are profit margin 497 00:29:31,000 --> 00:29:35,280 Speaker 3: and their margin enhancers, and the fact that you know, 498 00:29:35,320 --> 00:29:38,760 Speaker 3: you can have an extended area or a super extended 499 00:29:38,800 --> 00:29:42,520 Speaker 3: area or all the rest of the whatever comes up. 500 00:29:42,520 --> 00:29:45,920 Speaker 3: As far as ascessorials, those are the ones that really 501 00:29:46,960 --> 00:29:52,120 Speaker 3: determine where your pricing is going. And I think those 502 00:29:52,160 --> 00:29:56,400 Speaker 3: are as UPS continues to make changes where you know, 503 00:29:56,560 --> 00:30:00,400 Speaker 3: I think it really inherent on staying in close contact 504 00:30:00,440 --> 00:30:03,840 Speaker 3: with what they're doing, because they've made some decisions where 505 00:30:04,320 --> 00:30:08,000 Speaker 3: a rural point may only get serviced three days a 506 00:30:08,040 --> 00:30:11,720 Speaker 3: week and it's an extra fee to go there. Well, 507 00:30:11,800 --> 00:30:14,960 Speaker 3: those are the ones where USPS has a chance to 508 00:30:15,000 --> 00:30:18,880 Speaker 3: really steal some market share because they're dictated to serve 509 00:30:18,920 --> 00:30:21,240 Speaker 3: every zip code in the United States five days a week, 510 00:30:21,720 --> 00:30:24,760 Speaker 3: and if they can effectively inefficiently figure out how to 511 00:30:24,760 --> 00:30:29,120 Speaker 3: do it, there's an opportunity for him there. But that's 512 00:30:29,520 --> 00:30:32,840 Speaker 3: not a small chasm that USPS has to cross before 513 00:30:32,840 --> 00:30:33,600 Speaker 3: they get there. 514 00:30:34,080 --> 00:30:37,120 Speaker 1: Right and Amazon just announced plans to kind of go 515 00:30:37,200 --> 00:30:40,760 Speaker 1: deeper into to rural America and expand their footprint. So 516 00:30:41,400 --> 00:30:44,200 Speaker 1: that's something to watch in the months and years to come. 517 00:30:45,560 --> 00:30:49,480 Speaker 1: Can you talk about your LTL business less than truckload? 518 00:30:50,120 --> 00:30:52,560 Speaker 1: About how much of your domestics spend is LTL. 519 00:30:54,120 --> 00:30:59,080 Speaker 3: It's probably our third largest spend and unlike our other 520 00:30:59,160 --> 00:31:03,440 Speaker 3: business again, you know, we have partnered with one national 521 00:31:03,480 --> 00:31:07,680 Speaker 3: carrier and we work with rn L. Then we sub 522 00:31:07,840 --> 00:31:11,400 Speaker 3: We've backed that up with regional players on each side 523 00:31:11,400 --> 00:31:13,840 Speaker 3: of the coast and in the regions where we where 524 00:31:13,840 --> 00:31:18,440 Speaker 3: they give us an advantage on service and cost and services. Primarily, 525 00:31:19,000 --> 00:31:20,760 Speaker 3: if somebody can do it in one day versus two, 526 00:31:20,800 --> 00:31:23,920 Speaker 3: they win and so but again, you know here we've 527 00:31:23,920 --> 00:31:27,840 Speaker 3: probably we've partnered with a region what I would call 528 00:31:27,880 --> 00:31:32,080 Speaker 3: a national privately held company that looks and feels a 529 00:31:32,160 --> 00:31:36,720 Speaker 3: lot like Sandmar And so normally you don't hear, maybe 530 00:31:36,720 --> 00:31:38,720 Speaker 3: you don't hear a lot of major shippers coming out 531 00:31:38,760 --> 00:31:41,320 Speaker 3: and say, yep, we name RNL is our carrier. But 532 00:31:41,960 --> 00:31:45,840 Speaker 3: they do a fantastic job, and uh that again it 533 00:31:45,920 --> 00:31:47,000 Speaker 3: lines up with our business. 534 00:31:48,400 --> 00:31:52,280 Speaker 1: So what's this the second biggest bucket that you're spending Domesica, 535 00:31:52,400 --> 00:31:54,200 Speaker 1: so it's parcels and then al. 536 00:31:54,120 --> 00:31:59,280 Speaker 3: Tahia it's intermodal and ocean are they're they're a jump 537 00:31:59,320 --> 00:32:00,560 Speaker 3: ball between the two of them. 538 00:32:00,760 --> 00:32:04,480 Speaker 1: So right, talk about innermodial. What do you guys do there? 539 00:32:04,520 --> 00:32:09,080 Speaker 1: Like are you one carrier? You're using multiple carriers. 540 00:32:09,520 --> 00:32:12,760 Speaker 3: We bring all product into two coasts, so either the 541 00:32:13,120 --> 00:32:17,280 Speaker 3: east coast flows into Savannah and down to Jacksonville, which 542 00:32:17,320 --> 00:32:20,680 Speaker 3: is our crosstock, and the west coast flows into Seattle 543 00:32:21,080 --> 00:32:24,200 Speaker 3: and from there we unload all of our containers and 544 00:32:24,240 --> 00:32:27,560 Speaker 3: then we shoot intermobile to our ten distribution centers. So 545 00:32:28,200 --> 00:32:31,440 Speaker 3: you look at us, we're a pretty balanced east to 546 00:32:31,480 --> 00:32:36,280 Speaker 3: west and west to east, and we participate with both 547 00:32:36,520 --> 00:32:39,760 Speaker 3: Schneider and Hunt, which puts us as a major player 548 00:32:39,800 --> 00:32:45,240 Speaker 3: both on the BNSF and the UP and we probably 549 00:32:45,320 --> 00:32:48,600 Speaker 3: were a little more BNSF loaded than we are up 550 00:32:49,400 --> 00:32:54,760 Speaker 3: but they're both are are very solid partners. And the 551 00:32:54,840 --> 00:32:57,960 Speaker 3: same thing with CSX and the Norfolk Southern up and 552 00:32:58,000 --> 00:32:58,400 Speaker 3: down the. 553 00:32:58,320 --> 00:33:01,440 Speaker 1: Coast, and where in our model pricing event. 554 00:33:02,040 --> 00:33:06,120 Speaker 3: You know, if it is really flattened out, and you know, 555 00:33:06,360 --> 00:33:09,920 Speaker 3: you look at the fact that one of the CEOs 556 00:33:09,960 --> 00:33:12,560 Speaker 3: of one of the larger truckload companies came out and 557 00:33:12,600 --> 00:33:17,680 Speaker 3: it's talking about ending this freight recession, and we've not 558 00:33:17,800 --> 00:33:23,480 Speaker 3: seen the pricing impact. And I think until something happens 559 00:33:23,920 --> 00:33:28,080 Speaker 3: to move markets, to move capacity, then we're still staying 560 00:33:28,120 --> 00:33:30,960 Speaker 3: in the same market, the same area. And I just 561 00:33:31,000 --> 00:33:33,480 Speaker 3: don't know what is going to happen in the near 562 00:33:33,600 --> 00:33:37,280 Speaker 3: future that's going to change capacity in the truckload marketplace. 563 00:33:37,680 --> 00:33:39,880 Speaker 3: I mean, I think you still continue to see maybe 564 00:33:40,120 --> 00:33:43,200 Speaker 3: the owner operators and the independence falling out of it 565 00:33:43,280 --> 00:33:46,920 Speaker 3: because they can't make money. But I don't see the 566 00:33:46,960 --> 00:33:51,240 Speaker 3: market shifting from where it's at today. And again, we've 567 00:33:51,560 --> 00:33:54,920 Speaker 3: played this very long game where we've tried to bucket 568 00:33:54,960 --> 00:33:58,200 Speaker 3: with our business. So it's meaningful to the large players 569 00:33:58,200 --> 00:34:01,440 Speaker 3: that we're dealing with, and we play in multiple areas, 570 00:34:01,680 --> 00:34:05,560 Speaker 3: So we may play with them as a intermodial player, 571 00:34:05,640 --> 00:34:08,799 Speaker 3: a truckload player, and a DRE player, or we may 572 00:34:08,840 --> 00:34:13,840 Speaker 3: play with them as a intermodial player and their brokerage division, 573 00:34:14,280 --> 00:34:17,359 Speaker 3: so that we're putting dollars in multiple buckets. But it's 574 00:34:17,400 --> 00:34:20,200 Speaker 3: all rolling up to the corporate end. And again, I 575 00:34:20,239 --> 00:34:25,160 Speaker 3: think it makes us a desirable customer. And then we've 576 00:34:25,200 --> 00:34:30,560 Speaker 3: had a huge commitment to being driver friendly and so 577 00:34:31,000 --> 00:34:34,600 Speaker 3: from the standpoint that when drivers come into our facilities, 578 00:34:34,600 --> 00:34:37,879 Speaker 3: they like coming there. They're they're dropping their equipment, they're 579 00:34:37,880 --> 00:34:42,000 Speaker 3: hooking their equipment, they have access to our facilities. And 580 00:34:43,040 --> 00:34:46,440 Speaker 3: you know, we're planning right now for what does truck 581 00:34:46,520 --> 00:34:49,560 Speaker 3: driver appreciation we look like when it hits this next year. 582 00:34:49,600 --> 00:34:53,399 Speaker 3: What can we do And so again it's it's all 583 00:34:53,440 --> 00:34:56,920 Speaker 3: about how do we make ourselves a very attractive customer. 584 00:34:58,280 --> 00:35:00,680 Speaker 1: You know, you mentioned supplying the truckload side. You know, 585 00:35:00,880 --> 00:35:05,520 Speaker 1: falling fuel prices with WTI coming down is going to 586 00:35:05,640 --> 00:35:09,919 Speaker 1: kind of prolong that that recovery because it'll keep those 587 00:35:10,040 --> 00:35:12,680 Speaker 1: truckers that are struggling on life support for for a 588 00:35:12,680 --> 00:35:16,600 Speaker 1: little longer. So yeah, I agree. In January I was 589 00:35:16,760 --> 00:35:20,799 Speaker 1: very bullish on the freight recovery. And you know, with 590 00:35:21,160 --> 00:35:25,960 Speaker 1: Trump getting elected, you know, low taxes, low regulations, that's 591 00:35:26,000 --> 00:35:28,640 Speaker 1: good for freight. You know, this should be great. And 592 00:35:28,680 --> 00:35:32,680 Speaker 1: then you know Blamo that that just kind of blew up, 593 00:35:33,360 --> 00:35:35,560 Speaker 1: and it just seems like the freight recovery is getting 594 00:35:35,600 --> 00:35:39,120 Speaker 1: pushed off further and further off into twenty twenty five. 595 00:35:39,480 --> 00:35:41,880 Speaker 3: Well, I think if you look at like John Wolf, 596 00:35:42,800 --> 00:35:45,360 Speaker 3: the CEO of the Northwest Seaport, or you look at 597 00:35:45,400 --> 00:35:49,080 Speaker 3: Gene Soroka, the CEO of the l A Long Beach, 598 00:35:49,680 --> 00:35:53,400 Speaker 3: their volumes are down, the import volumes are down. And 599 00:35:53,440 --> 00:35:56,840 Speaker 3: if import volumes are down, it's like that snake eating 600 00:35:56,880 --> 00:36:00,239 Speaker 3: a rat. It just worked itself across the supply chains 601 00:36:00,239 --> 00:36:04,680 Speaker 3: are down. UPS's earnings call this week their margins and 602 00:36:04,719 --> 00:36:08,000 Speaker 3: their their package dollars per package were up, but their 603 00:36:08,080 --> 00:36:14,040 Speaker 3: volume was down. Yeah, that's the indication that this freight 604 00:36:14,120 --> 00:36:15,200 Speaker 3: recession continues. 605 00:36:16,400 --> 00:36:18,600 Speaker 1: Yeah, and just you know, a lot of people have 606 00:36:18,640 --> 00:36:21,319 Speaker 1: been talking about air pockets of freight. You know, we 607 00:36:21,360 --> 00:36:23,719 Speaker 1: have data on the Bloomberg Terminal that kind of is 608 00:36:24,000 --> 00:36:29,680 Speaker 1: hinting that ships leaving China for the US UH in 609 00:36:29,760 --> 00:36:34,160 Speaker 1: terms of capacity, it's down around thirty five percent just 610 00:36:34,239 --> 00:36:37,279 Speaker 1: in the last couple of months. So you're seeing a 611 00:36:37,400 --> 00:36:41,279 Speaker 1: huge decline and stuff leaving China, and like you said, 612 00:36:41,280 --> 00:36:45,640 Speaker 1: that's gonna you know, create an air pocket if you will, 613 00:36:46,040 --> 00:36:49,320 Speaker 1: of demand, which is gonna, you know, not be great 614 00:36:49,400 --> 00:36:51,200 Speaker 1: for for freight economics. 615 00:36:51,400 --> 00:36:54,680 Speaker 3: Well, and I think what happens if the pocket, if 616 00:36:54,719 --> 00:36:58,719 Speaker 3: the bubble breaks, if we restore trading with China, and 617 00:36:58,760 --> 00:37:01,440 Speaker 3: now you have this huge end up supply of business 618 00:37:01,480 --> 00:37:03,759 Speaker 3: sitting there that all comes trying to hit the market 619 00:37:03,800 --> 00:37:06,480 Speaker 3: at one time, that could be that could be up 620 00:37:06,760 --> 00:37:10,360 Speaker 3: a market changer if it were to occur, right. 621 00:37:11,239 --> 00:37:15,080 Speaker 1: And so on the truckload side, I guess you're not 622 00:37:15,160 --> 00:37:17,680 Speaker 1: You're not really using that much on the truckload side. 623 00:37:17,680 --> 00:37:18,640 Speaker 1: That's the fourth. 624 00:37:19,040 --> 00:37:22,839 Speaker 3: Primarily it's it's it's it's our smallest spin and it's 625 00:37:22,880 --> 00:37:25,960 Speaker 3: mostly out of one location in Dallas that goes out 626 00:37:26,000 --> 00:37:29,600 Speaker 3: to some of our larger customers. And uh so it's 627 00:37:30,000 --> 00:37:36,040 Speaker 3: and and we deal almost exclusively with a brokerage division 628 00:37:36,120 --> 00:37:39,000 Speaker 3: of one of the larger truckload carriers. 629 00:37:39,320 --> 00:37:41,560 Speaker 1: Okay, do you want to share where that is or 630 00:37:41,560 --> 00:37:42,160 Speaker 1: you'd rather. 631 00:37:42,120 --> 00:37:45,680 Speaker 3: Not it's a I mean, we deal with Schneider and 632 00:37:45,719 --> 00:37:49,000 Speaker 3: their brokerage division and they do a wonderful job. And 633 00:37:49,080 --> 00:37:53,160 Speaker 3: so again we're trying to make it look like very 634 00:37:53,320 --> 00:37:57,080 Speaker 3: much almost it's you know, it's drop hooks drivers in 635 00:37:57,160 --> 00:38:00,320 Speaker 3: and out going to the same locations. It's it's c 636 00:38:00,520 --> 00:38:03,279 Speaker 3: spot run type of freight. So it's very attractive to 637 00:38:03,320 --> 00:38:07,279 Speaker 3: the brokerage marketplace. They can align carriers that want to 638 00:38:07,280 --> 00:38:09,440 Speaker 3: come to deck Texas and they know they're going to 639 00:38:09,440 --> 00:38:12,359 Speaker 3: get a load back to some other desirable area. And 640 00:38:13,280 --> 00:38:16,759 Speaker 3: you know, as far as a dedicated we got into 641 00:38:16,800 --> 00:38:22,279 Speaker 3: the dedicated business just over three years ago and we 642 00:38:22,400 --> 00:38:25,160 Speaker 3: use it for our dre and we have dedicated drey 643 00:38:25,239 --> 00:38:28,440 Speaker 3: on both ends of the country and that has proved 644 00:38:28,480 --> 00:38:32,400 Speaker 3: to be very effective for us. It allows us to 645 00:38:32,440 --> 00:38:34,920 Speaker 3: clear the port with volume when we get it in 646 00:38:35,560 --> 00:38:38,759 Speaker 3: and avoid to merge and it's been a it's been 647 00:38:38,800 --> 00:38:39,719 Speaker 3: a big win for us. 648 00:38:40,239 --> 00:38:42,279 Speaker 1: So do you do you use one of the large 649 00:38:42,320 --> 00:38:46,720 Speaker 1: publicly traded carriers for dredge. We just dedicated drage we do. 650 00:38:47,040 --> 00:38:47,239 Speaker 2: JB. 651 00:38:47,360 --> 00:38:52,640 Speaker 3: Hunt manages our dre on the West coast and Cargo 652 00:38:52,680 --> 00:38:55,320 Speaker 3: Matic manages our dre on the East coast. 653 00:38:56,640 --> 00:38:58,840 Speaker 1: Cargo Matic. I don't think I'm familiar with them. I 654 00:38:58,880 --> 00:38:59,680 Speaker 1: have to go look them up. 655 00:38:59,880 --> 00:39:04,440 Speaker 3: They ended up with one of The Ocean's former CEOs 656 00:39:04,840 --> 00:39:07,080 Speaker 3: that went into their company and really has brought them 657 00:39:07,080 --> 00:39:10,760 Speaker 3: around into a very effective dre partner. 658 00:39:11,200 --> 00:39:14,600 Speaker 1: Okay, so you know, I hate to ask you this 659 00:39:14,719 --> 00:39:17,640 Speaker 1: question because I don't know. I don't know what your 660 00:39:17,680 --> 00:39:19,040 Speaker 1: answer is going to be, if it's going to be 661 00:39:19,040 --> 00:39:21,840 Speaker 1: an answer. But so, you know, a lot there's a 662 00:39:21,840 --> 00:39:25,560 Speaker 1: lot of talk about tech and AI. Are you leveraging 663 00:39:25,600 --> 00:39:27,759 Speaker 1: that in your supply chain in your day to day 664 00:39:28,560 --> 00:39:29,800 Speaker 1: At Sandmar. 665 00:39:30,000 --> 00:39:33,560 Speaker 3: We're you know, there's parts of the company that are 666 00:39:33,600 --> 00:39:37,359 Speaker 3: certainly leveraging AI, the marketing, and there's some of those 667 00:39:37,400 --> 00:39:41,960 Speaker 3: other areas that are We've not really figured it out. 668 00:39:42,120 --> 00:39:46,040 Speaker 3: On the logistics side, I don't. I don't know if 669 00:39:46,040 --> 00:39:48,920 Speaker 3: that's due to the fact that our senior executive in 670 00:39:49,000 --> 00:39:53,320 Speaker 3: charge of global logistics is an age away from AI. 671 00:39:53,840 --> 00:39:56,839 Speaker 3: But but no, I think we're we're looking I think 672 00:39:56,880 --> 00:40:00,839 Speaker 3: we have to look at it. We're not today as 673 00:40:00,880 --> 00:40:04,719 Speaker 3: far as logistics as a company. We certainly are across 674 00:40:05,000 --> 00:40:08,839 Speaker 3: customer service and sales and all the other areas, but 675 00:40:08,880 --> 00:40:11,520 Speaker 3: we it has not spun into global logistics. 676 00:40:11,560 --> 00:40:13,399 Speaker 2: Hit right, And. 677 00:40:13,320 --> 00:40:15,799 Speaker 1: You know, I forgot to ask you when we were 678 00:40:15,800 --> 00:40:18,760 Speaker 1: talking about truckload and your brokerage and all that stuff. 679 00:40:18,800 --> 00:40:20,680 Speaker 1: Do you guys use like the dropping hook? A lot 680 00:40:20,680 --> 00:40:22,759 Speaker 1: of the publicly traded companies like to talk about it, 681 00:40:22,800 --> 00:40:26,200 Speaker 1: how it's a growing business. Can you talk are you 682 00:40:26,320 --> 00:40:29,200 Speaker 1: using that service and kind of how you're using that 683 00:40:29,280 --> 00:40:31,280 Speaker 1: service and how you're benefiting from that service. 684 00:40:31,840 --> 00:40:37,080 Speaker 3: It's well with Schneider and Hunt specifically our two largest 685 00:40:37,600 --> 00:40:45,239 Speaker 3: everything's drop hook. So that drivers entering our facilities are 686 00:40:45,719 --> 00:40:48,879 Speaker 3: dropping a trailer, grabbing and empty and leaving our yard 687 00:40:50,200 --> 00:40:53,520 Speaker 3: so that their their drivers. They're not working in our 688 00:40:53,600 --> 00:40:54,800 Speaker 3: yard as yard hustlers. 689 00:40:56,360 --> 00:40:58,200 Speaker 1: That's good and it's good. It's good for them because 690 00:40:58,200 --> 00:41:01,279 Speaker 1: they can just hit the road. Do they use your facilities, 691 00:41:01,440 --> 00:41:03,560 Speaker 1: hit the road and it and get back back there. 692 00:41:03,880 --> 00:41:08,319 Speaker 3: Well, it's funny because both of them, you'll kind of 693 00:41:08,320 --> 00:41:11,160 Speaker 3: give you that driver ratings. Do drivers like come into 694 00:41:11,200 --> 00:41:15,600 Speaker 3: your facilities? Drivers love coming to our facilities, you know 695 00:41:15,600 --> 00:41:19,120 Speaker 3: they again, we treat them like they should be and 696 00:41:19,520 --> 00:41:22,600 Speaker 3: their time is valuable and getting them in and out 697 00:41:22,600 --> 00:41:25,320 Speaker 3: and it doesn't take that much. I mean the fact 698 00:41:25,360 --> 00:41:28,440 Speaker 3: that you're being a good steward of their time. You're 699 00:41:28,480 --> 00:41:33,280 Speaker 3: giving them restrooms to use, access to your braakerooms, access 700 00:41:33,320 --> 00:41:35,919 Speaker 3: to the Internet, and putting them back on the road. 701 00:41:36,200 --> 00:41:41,239 Speaker 3: So no, it's a it's a very big commitment that 702 00:41:41,280 --> 00:41:43,520 Speaker 3: we made as a company to be a shipper of 703 00:41:43,640 --> 00:41:47,799 Speaker 3: choice several years ago and one that we're pretty proud of. 704 00:41:49,040 --> 00:41:53,240 Speaker 1: And so you know, you're, as we mentioned in the intro, 705 00:41:53,320 --> 00:41:55,279 Speaker 1: you've been in the industry for a long time in 706 00:41:55,320 --> 00:41:59,240 Speaker 1: transportation supply chains. How did you stumble your way into 707 00:42:00,760 --> 00:42:04,319 Speaker 1: the roles for the initially into transportation? 708 00:42:05,640 --> 00:42:07,359 Speaker 3: Kind of a funny story, I guess if you look 709 00:42:07,360 --> 00:42:11,279 Speaker 3: at where it really started. In college, I was a 710 00:42:11,320 --> 00:42:15,120 Speaker 3: partial scholarship football player and in an effort to try 711 00:42:15,120 --> 00:42:19,120 Speaker 3: to make ends meet that, they got me a job 712 00:42:19,160 --> 00:42:21,680 Speaker 3: as a school bus driver. So I guess that launched 713 00:42:21,719 --> 00:42:26,000 Speaker 3: my transportation career. But I came out of college in 714 00:42:26,080 --> 00:42:29,920 Speaker 3: nineteen eighty three and with a degree in communications and 715 00:42:30,040 --> 00:42:32,719 Speaker 3: planning to be the next Chris Berman before there was 716 00:42:32,719 --> 00:42:37,480 Speaker 3: a Chris Berman, and the unemployment rate was huge then, 717 00:42:38,080 --> 00:42:40,239 Speaker 3: and so I ended up getting a job with May 718 00:42:40,280 --> 00:42:45,000 Speaker 3: Trucking and I interviewed for an HR job. They hired 719 00:42:45,040 --> 00:42:47,759 Speaker 3: me as a sales guy, and I told him at 720 00:42:47,760 --> 00:42:49,560 Speaker 3: the time, I've never sold a thing in my life. 721 00:42:49,960 --> 00:42:54,040 Speaker 3: I don't know anything about trucking. And I ended up 722 00:42:54,040 --> 00:42:57,719 Speaker 3: working with May Trucking as a truckload carrier and got 723 00:42:57,719 --> 00:43:01,879 Speaker 3: a great appreciation for the industry and went from there 724 00:43:01,920 --> 00:43:05,879 Speaker 3: to consolidated freightways to yellow Freight, and then from yellow Freight, 725 00:43:05,920 --> 00:43:08,120 Speaker 3: I jumped to the other side of the fence and 726 00:43:08,320 --> 00:43:14,320 Speaker 3: have worked for significant shippers ever since. And so started 727 00:43:14,320 --> 00:43:15,720 Speaker 3: out of college, and I have been in this industry 728 00:43:15,719 --> 00:43:16,239 Speaker 3: a long time. 729 00:43:17,239 --> 00:43:20,319 Speaker 1: All right, great, and John, we're coming up on the 730 00:43:20,400 --> 00:43:22,239 Speaker 1: end of our time. So I just really want to 731 00:43:22,280 --> 00:43:25,359 Speaker 1: thank you for your insights, if you can just leave 732 00:43:25,520 --> 00:43:28,680 Speaker 1: us with some words of wisdom of you know, how 733 00:43:28,760 --> 00:43:32,480 Speaker 1: you think shippers should be dealing with these tariffs or 734 00:43:33,040 --> 00:43:35,160 Speaker 1: you know the risk of tariffs. 735 00:43:36,320 --> 00:43:36,520 Speaker 2: You know. 736 00:43:36,760 --> 00:43:41,600 Speaker 3: I think it's being nimble is probably one of the things. 737 00:43:42,320 --> 00:43:46,239 Speaker 3: I think, being patient, not jerking the wheel too hard 738 00:43:46,280 --> 00:43:50,720 Speaker 3: to be left at one time. And again, I believe 739 00:43:50,719 --> 00:43:54,080 Speaker 3: in leaning on our professional relationships in this industry that 740 00:43:54,160 --> 00:43:56,560 Speaker 3: are closer to the situation than we are. 741 00:43:57,520 --> 00:44:00,280 Speaker 2: And I think that's going to get us by. 742 00:44:00,239 --> 00:44:03,200 Speaker 1: All right, great, well, John, I really want to thank 743 00:44:03,239 --> 00:44:05,560 Speaker 1: you for your timing your insights today. I really appreciate it. 744 00:44:06,120 --> 00:44:06,640 Speaker 2: Thank you, sir. 745 00:44:06,680 --> 00:44:08,799 Speaker 3: It's always good to talk to you. I know we 746 00:44:08,800 --> 00:44:11,759 Speaker 3: see each other at conferences across America, but it's always 747 00:44:11,800 --> 00:44:12,400 Speaker 3: good to talk to you. 748 00:44:13,160 --> 00:44:15,400 Speaker 1: Absolutely, and I want to thank you for tuning in. 749 00:44:15,440 --> 00:44:18,040 Speaker 1: If you'd liked the episode, please subscribe and leave a review. 750 00:44:18,400 --> 00:44:20,800 Speaker 1: We've lined up a number of great guests for the podcast, 751 00:44:20,800 --> 00:44:25,560 Speaker 1: so please check back to hear conversations with C suite executives, shippers, regulators, 752 00:44:25,600 --> 00:44:28,640 Speaker 1: and decision makers within the freight markets. Also, if you 753 00:44:28,680 --> 00:44:31,640 Speaker 1: want to learn more about the freight transportation markets, check 754 00:44:31,640 --> 00:44:34,719 Speaker 1: out our work on the Bloomberg Terminal at BIGO or 755 00:44:34,760 --> 00:44:37,720 Speaker 1: on social media. Take care and let's keep those supply 756 00:44:37,800 --> 00:44:38,359 Speaker 1: chains moving.