Good morning. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Schneider Fourth Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. I will now turn the conference over to Steve Bindas, Director of Investor Relations. You may begin your conference. Thank you, operator, and good morning, everyone. Joining me on the call today are Mark Rourke, President and Chief Executive Officer, Darrell Campbell, Executive Vice President and Chief Financial Officer, and Jim Filter, Executive Vice President and Group President of Transportation Logistics. Earlier today, the company issued an earnings press release. This release and an investor presentation are available on the Investor Relations section of our website at schneider.com. Our call will include remarks about future expectations, forecasts, plans, and prospects for Schneider. These constitute forward-looking statements for the purposes of the safe harbor provisions under applicable federal securities laws. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from current expectations. The company urges investors to review the risks and uncertainties discussed in our SEC filings, including, but not limited to, our most recent annual report on Form 10-K, and those risks identified in today's earnings release. All forward-looking statements are made as of the date of this call, and Schneider disclaims any duty to update such statements except as required by law. In addition, pursuant to Regulation G, a reconciliation of any non-GAAP financial measures referenced during today's call can be found in our earnings release and investor presentation, which includes reconciliations to the most directly comparable GAAP measures. Now, I'd like to turn the call over to our CEO, Mark Rourke. Thank you, Steve. Hello, everyone, and thank you for joining the Schneider call this morning. Let me start by offering our perspective on the current freight cycle by placing that in context for our most recent quarter results and our long-term strategic priorities. A consistent theme emerged from the discussions we have had with our highly diversified customer base through the back half of 2023. While customers still find themselves in a heightened state of uncertainty headed into 2024, virtually no one believes the current demand and capacity cycle is a new normal or even that it's durable. The consistent question is: when does it change? In alignment with that theme, at the end of January, Schneider's internal truckload freight market index crested 600 days of being below neutral, while the prior six cycles, three up and three down, have lasted an average of 575 days. Therefore, historically, we are quite long into this cycle. Invariably, macroeconomics and the demand and capacity balance environment adapts, sometimes at a slow and steady pace, and sometimes more abruptly due to a catalyst. Irrespective of the market, we are intently focused on company-specific initiatives to return our diversified and scaled operating segments of truckload, intermodal, and logistics to their long-term margin targets. Let me recap the important developments in the most recently completed quarter regarding those initiatives. First, in truckload segment, our average dedicated truck count in the quarter is up 674 units over a year ago and up 283 units sequentially from the third quarter through a combination of organic and acquisitive growth. Included in those numbers is truck count attrition across dozens of operations, particularly in retail support applications, due to less overall demand this fourth quarter versus a year ago. Encouragingly, this serves as a built-in growth channel with even modest demand improvement. Revenue per truck per week in Dedicated improved both year-over-year and sequentially, primarily due to asset productivity improvements as a result of those operation-specific truck count adjustments. Our Dedicated value proposition of strong operating performance, combined with a robust new business pipeline, gives us visibility into 700 units of additional organic growth in 2024. Dedicated, consistent revenue and earnings profile places it at the top of Schneider's strategic growth priorities alongside Intermodal. Presently, the growth and performance impact of Dedicated within truckload is muted due to the challenges of generating returns in the network offering. Over 100% of truckload's earnings in the quarter were associated with the Dedicated offering. Revenue per truck per week in Network improved sequentially, driven by asset productivity, aided by volumes improving modestly compared to the third quarter. However, at this time, there is not a compelling reason to allocate additional capital and network until freight rate levels are compensable for the service provided. Our second strategic imperative is to grow intermodal earnings, primarily through accelerating over-the-road conversion opportunities. That objective was the driving force behind our new rail partnership alignments with the Union Pacific and the CPKC. We are not gauging success with the UP network conversion off the first fourth quarter of operations. We are playing the long game here. Achieving our desired outcomes in the West requires not only service reliability, which the UP team has urgently and successfully addressed, but also flexibility in the solution commercially. 2023 was the year we took a step back in Western intermodal order volumes. The corresponding mix change is reflected in the 11% lower year-over-year revenue per order, evenly distributed between a change in mix and a change in price. That said, I am pleased that we are working in a highly collaborative manner with the UP to reverse that trend in the 2024 allocation season, and I am confident we're gonna be successful. We are also committed to leveraging Schneider's considerable strengths in Mexico with the leading intermodal service capability of the CPKC. The CPKC's best-in-class solution is one that proved its value in the quarter by eliminating handoffs and keeping freight in motion, which is the best way to avoid thefts and other disruptions. However, to unlock the full potential of the intermodal conversion opportunity requires changing long-held market beliefs and experiences on the reliability of intermodal solutions into and out of Mexico. Again, we're playing the long game here, and we expect by the time we exit 2024, we will be well on our way to realizing that potential. Thirdly, the logistics and brokerage market are hyper-competitive, and I appreciate how our team has nimbly navigated the environment by leveraging its own freight generation capability and the resilient power-only model to stay profitable. I am pleased with the advancement of Schneider Freight Power and the growth of our digital connections. Despite market softness, the number of orders that we acquired digitally increased approximately 25% over a year ago. This creates significant leverage for Schneider when the market begins to improve. Before I hand it over to Darrell for his commentary, let me offer some additional insight into fourth quarter results, including context to our guidance coming out of the third quarter Earnings Call. From a safety performance basis, our operations, safety, and professional driver teams have reduced the frequency of auto liability incidents by 19% as compared to the pre-COVID-2019 baseline. That is an important trend line, as cutting exposure is the first line of defense against rising settlement costs. However, in the quarter, we experienced adverse development, primarily on two accident claims from earlier in the year. Those two incidents snapped a Q16 consecutive period without a significant claim adjustment. On the positive side of the ledger, we posted a lower tax rate for the year. The net of the adverse safety developments and lower tax represented a 4% drag on earnings per share from what we contemplated in our prior guidance. Otherwise, the quarter played out nearly as we expected in terms of freight yields, cost performance, and lack of equipment disposal gains. Encouragingly, year-over-year volumes were up in December for both network truck and intermodal, but overall volumes in the quarter were more tepid than expected, especially around the holiday weeks in November and December. Let me now turn it over to Darrell for his insights on the most recent quarter, an update on our capital allocation expectations, and our 2024 guidance. Thank you, Mark, and thanks to each of you for joining us this morning. I'll provide a financial recap of our fourth quarter and full year results and some perspective on our 2024 guidance. You can find summaries on pages 20 to 25 of our investor presentation. Our adjusted earnings for the fourth quarter were down $116 million, or 78% from prior year. Adjusted earnings per share for the fourth quarter was $0.16, compared to $0.64 in the prior year. The fourth quarter of 2023 included a loss on the sale of revenue equipment versus a $10 million gain in 2022. As Mark indicated, compared to our most recent guidance, fourth quarter earnings per share was negatively impacted by $0.04, related to two unexpected items. Firstly, adverse development, primarily related to two accident claims that Mark mentioned. While higher claim costs were predominantly in truckload, all segments were impacted. Secondly, the favorability in our income tax rate, which related to increases in tax credits from our investments in new electric trucks and research and development activities, in addition to changes in our valuation allowance for losses associated with the sale of our Asia business. Truckload revenues, excluding fuel surcharge for the fourth quarter of 2023, were slightly above 2022, as the network pricing shortfall was more than offset by revenues from solid organic growth and dedicated, and our recent acquisition of M&M Transport. Truckload margins and earnings for the fourth quarter were also lower on a year-over-year basis, primarily due to network price, the adverse claims development discussed earlier, a loss on equipment sales, and inflationary costs. In our truckload network business, 2023, and particularly the second half, was challenging, and we believe that rates have largely reset. As we communicated last quarter, our spot exposure was uncharacteristically high, as we have sought to avoid entering into contracts at rates that are non-compensable. During the fourth quarter, we continued to rebalance our spot to contract mix and saw a marginal seasonality in pricing. We believe the pricing and volume stabilization seen sequentially in the fourth quarter are an indication of the bottoming of the current trade cycle. We expect to build on this momentum and to improve contract rates during 2024. As Mark mentioned, we remain very encouraged by the performance of our dedicated business as we continue to see solid startup activity in the fourth quarter and new business already awarded in the Q1 of 2024. We're seeing strong organic growth and stellar performance from our recently acquired businesses. Dedicated revenue per truck per week for the fourth quarter increased 3% the prior year and 4% sequentially. We remain disciplined on customer acquisitions, which should continue to support our growth and earnings expectations. As of the end of the year, dedicated truck count represented over 60% of the truckload segment total, as compared to 57% a year ago. This trend reflects progress on our stated commitment to strategically grow this business organically and through opportunistic acquisitions.... Turning to intermodal, we continue to see our intermodal business representing a key structural growth opportunity. We're well-positioned with our existing container and chassis to grow our business 25%-30% without the injection of trailing capital. For the fourth quarter, intermodal revenues, excluding fuel surcharge, declined by 17% compared to 2022. As in the truckload network, significant pricing pressures weighed heavily on results. For the quarter, volumes decreased 1% compared to 2022. However, December marked the first month of year-over-year growth since February. Intermodal earnings were impacted primarily due to price, in addition to lower orders year-over-year and increased empty repositioning and claim costs. Logistics revenues for the fourth quarter of 2023 declined by 20% versus 2022, primarily due to decreased revenue per order, as well as lower brokerage volumes. In addition to pricing and volume declines, logistics margins and earnings for the fourth quarter were also impacted by the adverse claims mentioned earlier. Our logistics businesses continue to operate profitably through a challenging freight cycle. We saw sequential improvements during the quarter in both net revenue per order and orders per day, in part due to seasonality. The asset-light nature of these businesses also continues to support our optimism for continued growth and long-term return on capital. Turning to capital allocation for the year, we ended 2023 with Net CapEx of $574 million, just below the top end of our most recent guidance of $575 million. During the year, we increased our debt balance, partially related to our acquisition of M&M Transport in August. Our net debt leverage was 0.3x at the end of the year, and we generated $680 million in cash from operations. Despite current operating conditions, the strength of our balance sheet gives us the conviction to remain confident and committed to our capital allocation strategy, including returning value to our shareholders. As such, we paid $64 million in dividends during 2023, which was 14% above 2022, and we continued to strategically repurchase shares with total activity of $66 million for the year. In addition, we recently announced an increase in our quarterly dividend to $0.095 per quarter, a 6% increase from 2023. Moving now to our forward-looking comments. From a macro perspective, while higher inflation and interest rates have pressured consumer demand, inflation has been moderating, and the Federal Reserve's indication that interest rates could be lower by the end of 2024 has been a key factor in recent optimism and consumer confidence. Given the normalization of inventories, we believe shippers will pivot to restocking in 2024 if consumer confidence persists. In addition to the actions we're taking to recover pricing and volume, we continue to maintain discipline in managing costs across our business segments in an inflationary environment. As we do throughout all market conditions, we continue to identify incremental opportunities during 2024. We expect safety costs to be higher than 2023, primarily because of increases in premiums and the full year impact of M&M Transport. Despite our ongoing focus on and investments in safety, we're also not immune to increased litigation, inflated settlements, and elevated insurance premiums. We expect equipment gains to be approximately $30 million lower than we realized in 2023, given the current and expected state of the used equipment market. Also, our 2023 adjusted EPS of $1.37 included $0.09 of net equity gains from strategic investments, while our 2024 guidance assumes none. As is our usual practice, as we record equity gains or losses, we will incorporate them into our guidance throughout the year. Taking all these considerations into account, our guided adjusted earnings per share for 2024 is $1.15-$1.30. This guidance assumes a normalized effective tax rate for 2024 of 24.5%. While we believe we're at the bottom of a cycle, both the timing and pace of recovery during 2024 remain uncertain. The continuing effects of lower contract pricing in our network businesses of truckload and intermodal, and net revenue compression in logistics are expected to impact our results as we enter 2024, and we expect sequential recovery in the freight market as the year progresses, with a heavier weighting toward the second half of 2024. Finally, I'll provide some guidance on our net CapEx plan for full year 2024. During 2023, we made notable progress towards our tractor and trailer age of fleet targets as OEMs have recovered from their production constraints. We also remain confident in our ability to grow intermodal volume without the need to add any containers or chassis in 2024. We, therefore, do not expect the same level of CapEx investments in 2024. In addition to continued technology investments, we'll invest in growth capital in dedicated and intermodal tractors. We also anticipate moderating proceeds from equipment sales as compared to 2023. As a result of these considerations, we expect net CapEx to be in the range of $400 million-$450 million for the full year 2024. With that, we'll open up the call for your questions. As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Your first question comes from the line of Bruce Chan from Stifel. Please go ahead. Hey, good morning, everyone, and thanks for the time here. Darrell, you know, welcome to the call, and it's always great to have another Floridian in the mix. But to maybe just a question here on the competitive environment in intermodal. You know, what are you seeing as far as price discipline or maybe lack thereof from your peers right now? And given that you and others have quite a bit of capacity that's, you know, kinda waiting to be unleashed there, how do you expect that competitive environment to trend, you know, if and as we see a recovery? Yeah. So the first place, when we think about the competitive landscape for Intermodal, the largest competitor is over the road. And so that is the number one place that we're looking, where the largest opportunity is. Across the competitive landscape, there's a lot of containers that are up on stacks, and so there isn't necessarily a strong need to put all of those back into service to be able to continue to operate. So I think there's discipline in terms of what's needed to take containers off the stack. We're not gonna take containers off the stack for pricing that's not compensable. Okay, that's really helpful. And maybe just a quick follow-up to that. You know, when I think about the discussions with customers in intermodal and, you know, maybe in your network business as well, how have those discussions been going? You know, contract renewals, are they trending positive so far this year? You know, any signs of a turning point? Yeah, well, it's very early in the season. There's a really wide spectrum out there. So, there's not very many that have closed out at this point. I'd say there's a couple of themes here right now. Number one, that, you know, as Darrell mentioned, that we're staying disciplined. There's just no room to take a step back further. But also our customers' approach, that there's customers that are putting a lot of work and effort into these bids, and at the same time, don't expect their bids to hold together through the entire bid cycle. That's really helpful. Thank you. Your next question comes from the line of Ravi Shanker from Morgan Stanley. Please go ahead. Thank you. Morning, everyone. Good morning EPS guidance down year-over-year seems very conservative, even with some of those cost headwinds that you mentioned, kind of the equity gains and the loss on sale, et cetera. Are you guys assuming that current conditions stay stable through the rest of the year, or kind of...? I know there's obviously tremendous uncertainty on the timing of inflection, but what exactly is underpinning this guidance? Yeah, Ravi, it's Mark. I'm hesitant to put a label on the guidance beyond what we've kinda communicated there. You know, as we look at our company-specific initiatives, as we look at where the market is from, and our expectations on price and productivity, we think we've given a fairly balanced view towards the range as we currently understand it and can anticipate. We do believe we are supremely positioned to pivot quickly, depending upon where the conditions go, particularly on the upside, and our model and our assets will be deployed, as well as what we can do with our brokerage business and pivot quickly. So, but in balance, I think we've taken into account clearly what we can anticipate at this point. And again, I would, at this juncture, probably avoid putting a label of whether that's conservative or aggressive or anything like that. Okay, got it. And maybe a quick follow-up. Can you elaborate a little bit more on the intermodal issue and the, kind of, the allocation with, with UNP? Kind of what exactly happened there, kind of why is it gonna take 12 months to resolve, what are the surprise, et cetera? Yeah, yeah. So, first of all, we're seeing out there in the broader market, there's opportunity. As I mentioned, the truckload market, that's the largest opportunity. I think the second opportunity is imports. But as it relates to, you know, our rail provider out there in the West, that this is, you know, our first year with the UP. And I really commend the UP for taking this additional on volume, improving service, but it was a year for learning for both sides. And I think we have an opportunity that we have... You know, our deals are long term. They're market-based and competitive, but they're based on normal cycles. So there's times when we go through a little bit of abnormal cycles and, you know, we seek to work a little bit differently with our rails during those, seeking out a little bit of flexibility. And, you know, with this year of learning, we're looking forward to leveraging that, for both sides and, using that alignment to move forward. Great. Thanks, both. Thanks, Ravi. Your next question comes from the line of Jordan Alliger from Goldman Sachs. Please go ahead. Yeah, hi. Just a question, sir. Once again, thinking about the guidance for the year. You talked a little bit about second half being better than the first half, but is there a way to think about the shape or the skew? I mean, as you're seeing it now, is it going to be pretty sharply second half versus first half? And is there a difference between your three business segments in terms of how you think about the year progressing, in terms of profitability? Thanks. Hey, Jordan. Thanks for the question. You know, I wouldn't give you any specific shaping comments beyond what we do believe that it will be continue to improve as we go through the year. You know, certainly, as you look at our various segments, we think that applies to all three. Dedicated is a bit more, I guess, considerably more consistent quarter to quarter, and so our Network businesses, I believe, have the biggest opportunity as we come out of 2023 and come into the 2024 allocation season, both in truck and Intermodal. So I would characterize the opportunity to be in all three segments, fairly consistent, with increasing upside relative to both volume and pricing as the year progresses. ... Thank you. Your next question comes from the line of Brian Ossenbeck from J.P. Morgan. Please go ahead. Hey, thanks. Good morning. Just want to go back first, Jim, to your question about some of the customers expecting their bids, maybe not to hold through the cycle. I don't know how to read into that. Does that mean they're expecting an inflection? Does that mean they're trying to, you know, take one more bite of the apple and see what happens, you know, in the back half of the year? Maybe you can give some context around that. Yeah. Thanks for the question. So it is the former that customers expect that there's going to be an inflection at some point, and that they may have overreached in trying to dig as far as they did, and at some point during the year that these aren't going to hold. Yeah, I would say broader conversations across the broader spectrum as folks are being, in our view, much more balanced towards the fact that we are long into this cycle. I think what Jim's referencing, there are customers that look, you know, based upon their, their approach to be more aggressive. And we think those folks, and as we communicate with them, will take all of that into account on what type of commitments we will or will not make on behalf of that approach. So, but I think increasingly, those conversations, as I said in my opening comments, no one believes we're in this condition for the long term. It's just a matter of when, and I think you're seeing more of balanced thinking going forward than we would have described as we were coming into this juncture in 2023. All right, thanks for clarifying that. And then, Mark, for you, can you just talk about how you're positioning the network truck business into this bid cycle? You mentioned hanging on to more spot, keeping some of the capacity out of the market, but it seems like that obviously came with a cost, given the performance with loss making in the fourth quarter. So do you feel like that's still, you know, first quarter drag? Is there some permanent capacity, you know, that needs to come out, or you still just waiting, kind of, biding your time until you get the right rate to move this equipment back in, into the market? Yeah, Brian, I think what we tried to communicate there is that this is a place, presently we're not looking to add capital to. We also know from our historical practice that the truck network business, both up and down cycle, reacts the quickest to change. And so that's really our focus, is to focus on improving the revenue quality well in advance before we think about adding, capital to the network. It does play an important role in support of our customers and dedicated startups. There's a lot of other things that they bring to the party, but we don't need to add additional capital there. Focus is on margin restoration and, augmenting that network, capital that we put into it with our own trucks, with increasingly, leveraging power-only capability, and third-party equipment, into that equation. Okay. Thanks, Mark. Appreciate it. Thank you. Your next question comes from the line of Ken Hoexter from Bank of America. Please go ahead. Hey, great. Good morning. Mark, yeah, I guess if we could just kind of revisit the outlook you and Darrell were talking about with Ravi. You know, the $1.15, $1.30, if you eliminate the $0.10 of gains this year, I guess that gets you you know, that's why it's kind of flattish on the outlook. But maybe can you talk about puts and takes within that, you know, your mix on volumes and pricing? You know, it sounds like you've got fleet growth based on the CapEx. So now is it more that inflation is going to offset the fleet growth and yield growth? Maybe just trying to get the puts and takes that are within your flattish outlook. Yeah, I'll start, and I'll turn the mic over to Darrell here momentarily. But what we're looking at on growth CapEx. First of all, our CapEx guidance range of $400-$450 is down fairly considerably from a year ago because of the catch-up with the OEMs and the age of fleet. So we feel really well positioned there, but depreciation is up just because of the inflationary cost associated with the last couple of years with that new equipment. From a growth standpoint, Ken, we're really focused on really two areas, and that would be dedicated, where we've had sustained success organically, and we have good visibility into both the first and second quarter of a number of startups that give us confidence that we will continue to have momentum through 2024. And then, on success of growing our intermodal business, while we won't look to put additional container in chassis because we have our ratios where we need them to be, we have terrific self-help leverage there with growth without adding trailing capacity. But we would look to add and grow the fleet, company Dray Fleet, so we have some tractor growth in there. We don't really see the need on the trailing equipment either in intermodal or truck outside of dedicated. And so that's all reflected in our forward guidance as it relates to CapEx. Yeah. The only other thing I would add is, you know, in addition to the equity gains that you mentioned, that we're not assuming in the model, there's lower gain on equipment sale of $30 million, which I've mentioned in my comments. And I also talked about safety costs, which we're expecting to increase, you know, primarily due to premium increases in the market insurance premiums. And then obviously our tax rate, which was at 22% in 2023, is expected to normalize. So all those things are headwinds that slightly impact some of what Mark talked about in terms of growth. Thanks for that. Darrell, maybe just a couple numbers follow-ups. You mentioned asset loss in the quarter. I don't think you gave a number. Was there a number with that? And then intermodal, did you say what percent of boxes are still stacked? And then I, if you let me get one more, I'll ask about contract rates, but that's it. We're gonna probably move on after the two, so thanks, Ken. All right. That's fine. Yeah, yeah. Sorry. Yes, we'll get a chance to catch up. Yeah, no, no number on the loss. But Jim, if you want to jump in on that. Yeah, so there's about 15% of the containers that are on stack. All right. Thanks, guys. Your next question comes from the line of John Chappell from Evercore ISI. Please go ahead. Yeah, thank you. Hate to be so short-term focused, but it seems like this is going to be one of those years where it's tougher to make a call with good visibility until you get closer to see the whites of the eye. So as it relates to Q1, typically seasonally weaker, but coming off a kind of a muted peak season, does one Q, in basically all of the different segments, look similar to fourth quarter, or are there some maybe idiosyncratic reasons whyQ1 should be better seasonally as we look at it sequentially? Well, thank you. It's a little early in the quarter, obviously, and we've been dealing, at least initially through the first couple of weeks, we had some adverse weather impacts, particularly in comparison to the last couple of years. So we'll keep our real thoughts as it relates to the shaping of the year, as what we've said to this point. We do think it'll continue to improve throughout the year and be a bit more robust in the second half, but not offer any more specific guidance yet here in the first quarter. Okay. Understood. Jim, as it relates to intermodal margin, obviously, there's a lot of optimism about getting volume back on the different networks, but the margin's obviously taken a pretty significant step back over the last 12 months. Is this strictly a function of the volume will drive the turns, will drive productivity, will drive margin improvement, or are there other things that you can actually do internally, to, you know, better the cost structure, provide more operating leverage, so you can even have some volume improvement... I'm sorry, some margin improvement before you really get a true volume inflection? Yeah, thanks for the question. So, obviously, during the quarter, there were some additional containers that were put on stacks, so that was some additional cost that was absorbed. There's also opportunity, just running a more efficient network. So, it's not just getting volume, but getting the right volume, that reduces our, our empty repositioning costs as well as our driver productivity. So those are all the focus areas to be able to improve margin. Okay. Thanks, Jim. Thanks, Mark. Thank you. Your next question comes from the line of Jack Atkins, from Stephens. Please go ahead. Okay, great. Thanks for taking my question. So, I guess I'm going to go back to the guidance for a second, because I think what folks are confused about is, you know, when you kind of adjust for the taxes and the insurance headwind in the fourth quarter, I mean, your exit rate is about $0.60-$0.65, something like that, for kind of a full year exit, annualize in the fourth quarter, and you're guiding to $1.15-$1.30. So I guess what I'm trying to really get, like, my arms around is what specifically are you assuming for a cycle turn in the second half of the year to kind of get to the bottom end of this guidance range? Because it would seem like there's a pretty substantial improvement in underlying business trends there. So help us think through that, because, you know, I, we all hope something's going to happen, but it seems like you're expecting it to happen. Well, thanks for the question, Jack, and I'd like to address that on a couple of fronts. First, we focused in on our company-specific objectives and the annualization of all the good work we've been doing in Dedicated, both acquisitively and organically, and the prospects that we anticipate, many of which we have visibility to, from contract closures and startups. So, you know, we are leaning into key strategic initiatives that allow us to continue to improve our overall business results, and that, in our truck business, dramatically focuses on Dedicated, and feel really good about where we're positioned there. Secondly, we do believe that, based upon our alignment with our customers, what they look to accomplish, relative to Intermodal growth and how that fits into what their strategies are, that we are well-positioned, and we're leaning in hard to change some of the trajectory we've experienced in that business in 2023, to include the really unique opportunities that are emerging in Mexico. So that's two. Third, as you would expect, we've been leaning really since the middle of 2022 into a cost structure and how we can become more efficient. You saw in our results, sequentially, the third to the fourth quarter, that asset productivity improved without demand improving in a very material way. So again, those initiatives that we are leaning into to improve asset turns across everything that we do across our portfolio, is things that we think and expect to improve results. But clearly, we believe we're also very long into this cycle. Our internal metrics that we look at, which is a combination of company-specific correlation factors and certain outside elements of data that also over time have correlated to cycles, where we, at the end of this month, will surpass 600 days, as I mentioned in my opening comments, which is historically very long in the cycle. There's some macroeconomics, whether it's rate condition, inflation, consumer confidence. We do believe things-... will turn to an extent, and we'll get back into some level of restocking that's been stubbornly slow, and capacity continues in a slow and steady pace to exit the marketplace. That doesn't include a catalyst that over time has occurred that can accelerate that. So we're taking those company-specific things. We're taking a slow and steady capacity exit, a restocking, again, a slow and steady restocking that will continue, that we believe has the highest probability to improve throughout the year, and that's what we put into that context. That's what we put into that guidance range. Okay. Okay, Mark, thank you for that color. And then I guess maybe for my follow-up, it's really on insurance. I mean, I think almost everyone that's reported so far during this earnings season has had some sort of insurance, you know, either accrual, true up, it's been a, you know, kind of key topic on all these calls. You know, as you sort of are thinking about this moving forward, could you talk about, you know, any sort of inflation that you're expecting in your premium costs in 2024? But, you know, or would you just expect, you know, insurance as a percentage of revenue moving forward to just be a higher number? It just feels like structurally, the market's just hard in some. Yeah, I think the insurance markets, whether you're talking trucking or really any other portion of the economy, is under pressure from a premium standpoint, and certainly we're expect, and we feel that. I think what's really important when we look at Schneider specifically, we had a 16 consecutive quarter streak where we did not have these type of adjustments. So, you know, we take, first of all, safety from a training, a technology, what we do every day, from the core value of the company, very seriously, and it's reflected in our results, and you see it in the incident exposure reduction that I shared with you, 19% over the last couple of years. So all of that is incredibly important, and it's also incredibly important to be realistic about when you have a risk exposure, that you have evaluated it correctly, and you deal with it in a way that it doesn't escalate. Unfortunately, that 16 consecutive quarter streak snapped on us in this year primarily around two incidents. So again, I don't accept the fact that it's a continuous issue, but they do happen, and this was our time for them to happen. So Jack, yeah, I think the insurance premium side of that is an external factor that we're going to have to deal with, as everybody will. But we are leaning in really hard because nothing we do is worth hurting ourselves or others, and it, and it permeates every part of our organization. Thank you, Mark. Your next question comes from the line of Tom Wadewitz from UBS. Please go ahead. Yeah, good morning. So I wanted to ask a little bit about the intermodal margin. I think there's been this kind of, you know, anticipated help on purchase transportation. That seems like it just hasn't been visible yet, in terms of helping you on the margin side. Is that something that you think will continue to be elusive, or is it reasonable to think that if you look at, you know, whether it's 1Q or 2Q, that you would see sequential improvement in that intermodal margin, supported by, that kind of, you know, lagged reduction in purchase transportation? Yeah. Thanks, Tom. So, yeah, we, you know, we still have our long-term margin targets out there, and we still believe that those are the right target margins for all three of our segments. And believe there will be a point that we get to that spot. I couldn't give you a timing of as, you know, which quarter do we get back to that, but we do anticipate that we'll get back to those long-term margin targets. Yeah, Tom, and I think, you know, our approach, particularly on intermodal, is well positioned to be highly competitive and effective through normal freight and business cycles. I think obviously we've been through a significant upside. Now, we've seen the backside of that, and we're working to become more nimble commercially with our customers, how we partner with our rail providers, particularly our newest ones, to deal with those market abnormality, abnormality, easy for me to say, period. But I think overall, we're positioned well. We would continue to expect improvement there operationally, as service improves, and really pleased with how the rail partners have leaned into that to give confidence to our customer base. And then I think we have some unique capabilities that we'll continue to pursue, and I think we do have the absolute best solution in and out of Mexico, and we've got a great provider there, and really looking forward to exercising that to the degree we can here through this next allocation season. So, I guess I would read that as optimistic and feeling that we're in a good position and it should continue to improve. Right. Okay. Mark, I wanted to ask you a cycle question too. I, as I look at these results, and, you know, you alluded to Network losing some money, you know, Heartland's losing money, other, you know, is pressure on the market, right? And I, I think it's just like, I don't recall a cycle downturn where there's been such pronounced, pressure on, on big truckload carriers, you know, big, well-run truckload carriers. Do you think that, results in, at some point, maybe a bigger capacity adjustment? I'm just trying to figure out how do you... You know, what's the result of this? Because it does seem like a kind of a, a tougher downturn than we've seen in prior cycles. Yeah, I think we've all been talking about the stubborn exit of capacity. I think certainly it's occurring. Would we have expected maybe a bigger exit at a faster rate? I think all, many of us in the industry would have, based upon history got there. But there's different dynamic market forces at play. I think the compression, perhaps what you're pushing at, Tom, is as we went through the pandemic-driven upside, we also had some inflationary factors play there, particularly in the equipment space, the driver wages space, and those are a bit more difficult, at least in the short term, to get through your results, particularly on the backside of a correction. And so, and perhaps that is a factor that's a bit more pronounced than may have happened in some prior periods, like 2009 and some of the other more pronounced downturns. So, I think we got a handle on those costs. I think we got an approach to that, but certainly we don't think the rates are compensable for the service provided, the cost to serve. Now, you throw the insurance question we had here just prior, that there needs to be, and I we're confident that there will be a market correction on the pricing side to reflect that. I mean, I guess we'll see what the result is, but do you agree with the premise that this is maybe a tougher downturn than we've seen? Well, memory gets harder as it... My 36 year in the industry, I would say this has been, at least from my experience, the most challenging on both sides. When it was extremely robust and what those implications were, and now as we're sitting here on the backside of that correction, I would put this as, if not the, it's got to be in the top two. Yeah. Okay, great. Thank you for the time. Your next question comes from the line of Bascome Majors from Susquehanna International Group. Please go ahead. Yeah, thanks for taking my questions. You know- Good morning. Following up on Tom. Good morning. Following up on Tom's question about the network margin, would network have operated at a loss without the claims charges that you dealt with in the quarter? And can you give us any historical context on where you are in the gap between what dedicated is earning now versus what network is, and how that's looked at other cycle troughs, just to understand how different this environment is today? And just to extend that, how necessary is pricing above inflation in intermodal and one-way to get to your second half objectives? Thank you. Thanks, Bhaskaran. Let me try to unpack that. Yes, so the safety implication was pronounced, much more pronounced in truck in the quarter and certainly reflective in our network results, and would have been certainly in the black without that. So a clear indicator. This is from a pricing standpoint, and first of all, dedicated, we feel is positioned very, very well. Obviously, when you're in a growth spurt, you have some additional friction costs around startups and recruiting and all the things that naturally come with leaning into that portion of the business. But even with that, in addition to our acquisitions, the gap is material, and because of the volatility associated with the pricing mechanism that plays out in our network business. So we do need to lean in the price. We do need to improve our book of business, and that's why we're not going to be adding capital. That's priority one, is simply to get after margin restoration, and that's a combination of productivity, cost, and rate recovery. Thank you. Your next question comes from the line of Uday Khanapurkar from TD Cowen. Please go ahead. Hi. Thanks. This is Uday in for Jason Seidel. Maybe just a longer one, longer-term one on intermodal. I appreciate that this is a fairly distinct possibility at this stage, but with China tariffs sort of creeping back into the conversation, how do you evaluate the volume and pricing dynamics in intermodal if those play out? Maybe it would be helpful if you could remind us how the intermodal business adapted to the imposition of tariffs in 2019. Did it have any predictable mix implications, anything on the cross-border? Any color there would be appreciated. Thanks. Yes, thank you for the question. And certainly of all of our service offerings, the one that leans in most heavily towards imports and the effect of imports is our Intermodal business. And the West Coast is a place that we have not maintained the share that we would have typically expected, and so import recovery is an important component, particularly in the western side of our network. We also have some real positives on some of the response to those geopolitical, which is the nearshoring activity that's going on, the investment taking place in Mexico that I think is the biggest winner here. Some of those investments take time to mature and to take hold, but clearly, the biggest opportunity is how much freight moves over the road on the long length of hauls that make most sense economically and mission-wise in and out of Mexico. So while there might be some over time geopolitical pressures in other parts of the network, there's also some winners and other parts that we want to make sure we're well positioned to take advantage of. And we have seen some shifting, obviously, from port activity to eastern ports and southern ports, in addition to Mexico, so which are more generally attractive to truck as opposed to intermodal over time. But, Jim, maybe just other comments as- Yeah 2019. If I go back to 2019, it did cause a little bit of a short-term blip, really, as you know, some of our customers were finding other sources of to get their products. but when they came back, it created a surge in demand. So we saw both sides of those. And so, you had that type of impact right away. Most of our customers have been, you know, they took the lessons learned. They've been de-risking their supply chain, using other Asian countries, other low-cost countries. That's why Mexico is so strategic for us, because more and more of our customers are looking at Mexico as their other low-cost option, and we have a really great service to help them. All right, thanks. That's really helpful on the historical trends. That was my one. Thanks. Appreciate it. Your next question comes from the line of Chris Wetherbee from Citigroup. Please go ahead. Hey, thanks. Well, good morning, guys. Hi, Chris. You know, I wanted to ask on the dedicated side. So we've heard a little bit of, I think, competitive dynamics on the dedicated side picking up. I guess, as you'd expect, where we kinda are in the overall cycle here. So just wanted to kinda touch base and get a sense of what the health that you think of of that market. Obviously, the metrics you guys post, whether it be revenue per truck per week or the addition of trucks, looks reasonably good in that context. But I wanted to get a sense, as you think about, you know, the guidance and how the outlook for 2024 looks, where that fits in. Is that market stabilized? Is it sort of doing what you'd expect it to do at this point in the cycle? Yeah, Chris, thank you for the question. As it relates to Dedicated, generally has a little longer sales cycle, and so, the work that you do in the year prior, you've got a lot of work under your belt, and so you generally have a little better visibility to at least six months out, where you expect both your retention levels of your current business, but also as we have been leaning into the extension of our reach here. And so that's part and parcel of what you see into our guidance. We would say, the market and our pipeline is still very, very robust. We've successfully are in the process, it not only new business in the fourth quarter, but we have scheduled starts that we have visibility to, both in the first and second quarter. You know, not as visible yet for decision-making out into the third and fourth quarter, but based upon that pipeline and our recent experience and success gives us confidence that that's gonna be another really good story for us through calendar year 2024. Okay. Okay, that's helpful. And then just maybe one quick one on intermodal. Just kind of thinking a little bit more big picture. I know you have the 2030 goals of doubling the business there. I guess, what are the sort of breakpoints we should be thinking about in terms of profitability or maybe it's asset utilization, where you start to sort of turn on the growth again? Just kind of curious how you think about what you need to see from a hurdle perspective to get more constructive on investment in that business. Yeah. We need to, to be able to see that we're, we're getting back to the long-term margin targets. And as we get back to, to those levels and we see the, the level of quality demand, that's when we'll be turning that back on and increasing capital. Yeah, we have just such productivity opportunities in front of us, not even having to get back to, you know, pre-highs as it relates to box turns. I think the good news is, we're seeing our customer base, for the most part, be very efficient with the container. We're getting back to a more normalized turn focus with our customers. And this past year, we did some investments in the chassis front to make sure that we could take advantage of that. So our ratios are where they need to be there, Chris. And so, we like the incremental growth margins that come with not having to invest in additional capital and cost to bring things on to get after improved volumes. So, it's not that we're don't want to invest, it's that we think we have invested, now it's time to yield the benefit of those investments. Okay. That's helpful. Thank you. We have no further questions in our queue at this time. I will turn the conference over to Mark Rourke for closing remarks. Thank you, operator, and I really appreciate everybody's attention this morning. We had an opportunity to talk about our commitment to advance our strategic growth drivers of dedicated truck, our confidence around intermodal conversion, and the aggregation of our capacity and demand through our FreightPower platform and logistics. So, we do see, at least as we get in here to 2024 early, that we're in a bit of a transition year with capacity and demand, balancing, improving as with the year progresses, and as we've talked about, throughout this call, a bit more heavily weighted to the second half. So thank you for your attention, and we look forward to engaging here as we get into conference season. This concludes today's conference call. Thank you for your participation, and you may now disconnect.