We are very excited to be joined to kick off the morning with J.B. Hunt. From J.B. Hunt, we have Spencer Frazier, who is the Executive Vice President of Sales and Marketing. We have Bill Dietrich, Senior Vice President, Intermodal Operations, and Andrew Hall, Senior Director of Finance. Gentlemen, first off, thanks so much for joining us. Really appreciate it.
Yeah. Well, hey, Chris, thank you for having us here. We always like being a part of this event, and just looking forward to sharing some information about the momentum that we really started in Q4 of last year, and the strength of our performance through Q1.
Yep.
Answer any questions that you may have. Looking forward to the discussion.
Absolutely. That may be a great segue to where we want to kind of kick off, which is sort of the current market. Maybe, Spencer, I'll turn it over to you. A couple of comments, what you're seeing here in the second quarter. Obviously, capacity on the truckload side started tightening in the fall of last year. That's continued as we've moved into this year. I think the month of May might have been sort of the biggest sequential step down we've seen in FMCSA carrier authorization.
Yeah.
It does feel like things are starting to happen, Maybe we can sprinkle a little bit of demand on the top as well. Maybe just a broad overview of what you're seeing in the end market, so we can kind of dig into each one of your businesses.
Yeah, you bet. I do believe, you've all read about it, you've seen it. Our customers are experiencing basically the increased enforcement of government regulations that were existing, and a few new ones. That started basically with some changes and announcements, and audits and research done back last spring. Some of those things were implemented in the summer of last year, really started to take hold and show the impact, I'm going to say in Q4 of 2025, kind of post-Thanksgiving. We started to see it and feel it, and that accelerated, to your point, through Q1, and is definitely being felt this quarter. There are a lot of different aspects to the regulations that are being enforced. We put out a white paper back in October of 2025. We updated it in March, based on specifically the non-domicile regulation implementation.
Then we've seen different things specifically with the Montgomery case, with the Supreme Court having a unanimous decision supporting the broker liability changes. So a lot of different things have happened to impact capacity. Within that, our customers, we talked about this on the earnings call, they really started to understand what was changing in Q1 and this quarter. I'd say at this particular moment, as we sit here and think about what could happen through the rest of this year and into 2027, we're really trying to help our customers educate their internal stakeholders and their organizations about what could be a significant change and the dramatic could be speed, could be amount of change in this upcycle.
The capacity-driven things that are going on in our market are significant. Then also, I think one of the things I really like to look at are facts and data. You look at the facts and data from the LMI, from really the concerns about capacity. If you think about our industry, I might give you a couple words here. Since 2022, we've been in an oversupplied, over capacity, what would be called a freight recession. Again, that happened for the last four years. I think if you look at the LMI and the PMI since 2022, and both March and May respectively, they're now at their highs. Even some of them are all-time highs as indicators of capacity challenges as well as overall potential demand. I might pivot into that, and then Bill, if you've got anything you want to say on capacity, I'd love to hear it too.
From a demand perspective, things that we've seen is the companies that we do business with, they always find ways to meet their customers where they are. Again, you look at any kind of macro numbers, but also specific commentary, whether it's a consumer or industrial, demand is solid. Customers are resilient. You can see that while there are potential things that could impact demand over time, I think that's the case all the time. At this particular moment in time, demand is still pretty solid across our customer portfolio. We do have winners and losers, again, in every industry, depending on how their value proposition stacks up to meet their customers' needs. We see that too in our portfolio.
That's a great overview. Maybe let's dig into a few of those things. I wanted to start on the capacity side. That's been the big topic over the course of the last several quarters. As you noted, I think you're probably doing a bit of education to some of your customers about this. I think as we were going through the wintertime, there was a lot of discussion about weather. I think it's probably pretty clear that it hasn't just been weather that's been driving sort of the tightness in the market.
I guess as you think about some of these initiatives, whether it be the safety and regulatory enforcement that's really kind of coming down on the non-dom CDLs, or maybe it's going to be enhanced carrier vetting post-Montgomery. Any sort of thoughts you want to throw out there on what you think the capacity reduction might begin to look like on the truckload side? I think some people are beginning to think this is a bit more structural, so kind of curious your take.
Yeah. I might say a few things, and then Bill, if you've got some comments on it. I think structural is the right word. It is different this time.
Yeah.
There have been capacity challenges in our industry in the past. Those things were typically met by rapid increases in supply. I think this time, when you think about the regulatory impact of really stopping the importation, illegal and fraudulent drivers in our industry, all in the vein of improving safety, that is a structural change.
Yeah.
The ability for our industry to respond to that in the old way is just not going to be there. Now, within that, we had some estimates that there could be an impact of 200,000-400,000 drivers. I think the non-domicile FMCSA's internal impact, they thought 200,000 drivers could be impacted. We've seen tens of thousands of drivers come out of the system so far and believe that we're just in, I would say, the early innings, maybe the second inning, which could be a long inning of change from a driver perspective. Then just one benefit from that, obviously, safety on America's highways is number one. Additionally, this industry, like any other, will respond and find a way to do that. The way to do that is going to be creating good-paying American jobs, and I think that lines up with other things, specifically that this Administration wants to do.
The challenge will be is how quickly and how significant the cost impact of driving that change will be. One more comment, specifically around cost. If you look at our industry since 2022, and really look at our cost categories, ATRI, the American Transportation Research Institute, does a great job with their annual study, and they study costs for carriers to operate. Every cost category has basically been up 30%-50%. Over the past five years, the industry has a catch-up period from a cost perspective to go through. Secondarily, whatever this impact is from a driver perspective going forward is that we're going to have to invest in. I don't know, Bill, do you have any thoughts on the capacity side?
I would just add from my perspective in operations, I've certainly felt the capacity crunch, and it's slowly ramped up. Recruiting drivers for intermodal has been more difficult throughout the year. Really, the past six to eight weeks, has been even a little bit of an inflection point. To Spencer's points around some capacity coming out immediately, whether that's from enforcement of cabotage or the non-domicile CDL piece, to me, that's part of it. Also new entrants. I think these enforcements of regulations are throttling supply as much. You kind of have a double-edged sword.
You're pulling stuff out, but then a large majority or I think a large percentage, I don't know what percentage that is, of new entrants tended to be maybe foreign born or maybe English isn't your first language. Enforcement of English Language Proficiency. Do you want to be a truck driver and be concerned about being harassed when you're pulled over? Can you speak XYZ? I think there's definitely more barriers to entry and pushing people to do other jobs than truck driving. At some point, the correction's going to be very difficult, more difficult than the past.
That makes a ton of sense, and I think lays the groundwork really nice for the next part of the conversation, which I think is the natural one, which is we're starting to see spot rates really inflect much more meaningfully on the truckload side over the course of the last several weeks. It's really been going, to your point, I think, since the fourth quarter post-Thanksgiving timeframe. We've seen these step function moves, and importantly, we seem to be holding these higher rates.
Yeah.
You spent a lot of time talking to customers, so like you said, educating customers about what's happening here. How is the contract negotiation process kind of going? We're getting towards the tail end of bid season. Most implementation for you guys is going to be sort of 3Q and beyond.
Yeah.
What sort of is the dynamic? I think you gave us an update last time on some of the highway businesses, were kind of double-digit contract increases. I know intermodal is going to be less than that, but maybe if you could kind of help us understand what you guys are seeing.
Yeah. If you think about our bid season, you're right. It is kind of winding down in this quarter and then getting ready to ramp back up here starting in July. It kind of goes July to June is the typical cycle. Within that, I would say going through the fourth quarter and through Q1, we saw a normal approach from our customers. Pretty much staying on time. Also, the same types of discussions. Not really anticipating or preparing for much change. When those bids implemented, this is probably the biggest indicator of change in the market and customer behavior, is the amount of mini-bids or rebidding that takes place post-bid implementation.
The only reason that happens is because routing guides, once implemented, start to crumble. They're falling apart. That's what has happened at an accelerated pace, and I would say, Chris, really, probably from March through today. If you think about what's changed in the mini-bid, it might not even be called a mini-bid anymore. It's almost a rebid of the entire network. A bid where there might be some routing guide fallout historically would be maybe a couple lanes here and there. Nothing of magnitude. Maybe a few hundred loads, maybe 1,000 on an annual basis. We're seeing almost Full network rebids that have tens of thousands of loads in them. With us sitting here today, if you look back at last week, I think tender rejections on SONAR were almost 18%.
Yeah.
That hasn't happened since really probably 2021, if ever. Significant change. Our customers are feeling it. We're trying to work with them through the discussions post-implementation, through this mini-bid process, and then again, also setting up into the next bid cycle.
It does seem like there is more of a real-time reaction function because we are seeing routing guides fall apart, there is this more sort of incremental activity occurring in the market.
That's exactly right.
Okay. That's helpful. I guess as you start to think about that, any context on maybe how we think about what that means from a rate perspective, whether it be broadly across highway services or on the intermodal side? We know that that's going to lag. I think there's traditionally a couple of quarter lag between what we're seeing on TL and then flowing through to intermodal. How are you sort of breaking down those different parts of the business?
Yeah. I think to your point, obviously, we can see everything that's happening in real time in the spot market.
Yeah.
What's changed there, and again, that impacts the broker world more significantly first.
Yep.
Both on the rate side and also the cost of capacity. Second, really having the rebid opportunities to change pricing from a contract perspective. Typically, highway comes next, and that's happening at the moment.
Yeah.
Intermodal has the opportunity there as well. Really our discussions are more forward-looking, talking about and trying to anticipate what the cost of capacity is going to be to make sure that it's relevant to service our customers' freight. Also then the rates across all of our services and what we need to execute. Go back to what I said from an industry perspective, this industry is behind. It's been four years in a cost inflationary environment and a rate deflationary environment. The industry is still not healthy. It hasn't generated the returns it's needed to reinvest, and that has a catch-up aspect that's going on right now. The magnitude of what could happen from a catch-up perspective, but also going forward on what we need to execute, is still in flight and in motion. Could be significant, as Bill said.
Let's talk a little bit about the volume side of it. I think it's very interesting for J.B. Hunt specifically coming into 2026 as we're seeing some of this inflection on the capacity side and maybe some incremental demand. That volume is running at sort of peak-ish levels. I think record levels is probably the better way to phrase it for the intermodal business. Margins are starting off on the lower side. You've done some self-help around that. Maybe starting on the volume side, I would guess the selling proposition of intermodal in this environment is getting a bit easier.
Oh, yeah.
It's coming off of already very record levels. I guess maybe kind of walk us through a little bit of what the volume outlook might be here. We're obviously seeing the IANA numbers look reasonably constructive on the domestic side.
Yeah
In particular. I think there's been some discussion about peak season. Maybe talk a little bit about volume on intermodal.
Okay. Well, I'll just say volume across the board, I'll go in intermodal, but volume across the board for all of our services is strong.
Yeah.
Again, when you think about the momentum that we had coming through Q4 and into Q1, the reasons for that is because I believe we're taking market share because our value proposition focused on operational excellence is creating something unique for our customers across all of our services. That's something that we are very focused to continue doing, then as you also said, Chris, focused on lowering our cost to serve and making sure that we continue on this march of a structural cost takeout. Right now, I believe we're on around $130 million run rate.
Yeah.
That's something that we're making sure that we have discipline in our execution as well as in our pricing, that execution focused on service creates value. That's number one that drives volume. We think volume that's increasing in a faster rate than the overall market. Specific to intermodal, when you think about where we're at with intermodal, our industry had, prior to, I'm going to say about three years ago, had a decade of inconsistency and inconsistency of service, that creates question marks in our customers about deciding, "Can intermodal be a reliable part of my supply chain strategy?" We and our railroad partners heard that, I would say now we're on a multi-year run of very consistent, reliable service. Really the proof point going forward, customers always said, "What about if it gets busy?" To your point, last fall was busy.
Yep.
Also, this spring was busy. In March, we had a record week in intermodal. I think our volumes for the month were up 7%. Intermodal is busy, intermodal is performing. Based on great execution then Bill's team as well, making sure that we treat each customer and each load to the service parameters that it needs to hit that mark for our customers, gives them confidence. Confidence and operational excellence, then you've got this capacity issue-
Yeah.
... that now says, "Okay, our customers are going to struggle to meet their budgets. Intermodal is the right lever to pull for them to possibly get back in line on their budget line items for transportation expense." The confidence in execution makes it then a more durable long-term change. That change, just one more comment, it's not just as easy as saying, "Okay, I'm going to pull a highway box out of a customer's location and put an intermodal box in." There are things inside their routing guide, inside their supply chains, adjusting transit, making sure that their internal stakeholders are aware. When they make that change, it's not just for an on/off switch. Something that we believe we're expanding the market with more highway conversions, specifically in the East, as well as having transcon network efficiency, we're driving growth there.
That's a great segue. I wanted to ask you sort of about the East versus West dynamic. We typically think about the East as being a bit more truck competitive. When we see what's happening in the truck market and what's happening with fuel, typically seems like it would provide a bigger opportunity for your network in the East versus the transcon, where it's a little bit better penetrated, a little bit more of a mature business, I guess, is the right way to think about it. Maybe some comments about how you're thinking about the growth opportunities and maybe the pricing opportunities East versus West.
Yeah. Well, I'd say from a pricing opportunity, the gap between highway and intermodal has increased.
Yep.
Our goal is to try to make sure that we're investing in Bill's team and our equipment, also then working to close that gap. In the East is where it's the most significant, and it could be 25%-30%, depending on whosever estimate you want to look at. There's opportunity to probably get that back to a historical norm of maybe 15%. Maybe 10%, with the reliability that we've got. Inside the Eastern network, we had our strongest growth there in Q1, and I believe it was 8%, and our transcon was relatively flat. Inside of that, you might ask why. Again, that's where most of the freight that intermodal lost to the highway in the past is now being won back-
Yep.
... or converted back. It also matches up with our customers' supply chain strategies. They've got a multi-port and also regional distribution strategies. They are always trying to get closer to their customer, and in the East is where that's going to happen, where that competitiveness and even then the length of haul that our customers look at, "Hey, can this convert to intermodal? Was it 1,000 mi? Is it 800 mi? Is it 750 mi?" Had a customer conversation last week that's looking at 650 mi.
Okay.
That's an opportunity, again, to expand the intermodal market and provide a great service for our customers.
We've typically thought about 550 mi as roughly the break point, 500 mi, 550 mi.
Yeah, that'd be pretty tight. Again, getting down to that kind of short-
Yeah
... haul intermodal, you just never know what is going to be needed-
Yeah
... in this particular change.
Got it. There's opportunity on price, volume opportunity and share dynamics there. You noted the $130 million of run rate on the cost side that you guys started the process on last year to get where you need to go. I guess as you think about 2026 and maybe 2027, because it feels like this might be a multi-year opportunity of catching up, how do you think about sort of the cost opportunity? Maybe if you think about you have volume, you have price, and you have cost as different levers to pull on the margins. Maybe if you can prioritize and give a little bit of color on those.
I'll say a few things. Andrew, you might come in. I know we've often talked about specifically with intermodal, getting back to our margin targets.
Yep.
We're still working on that. Historically, I know we've shared that we'd like to think we can get one point from volume, maybe one point from price, one point from efficiency. That cost takeout that you talked about is having a significant impact.
Yeah.
Really, I know the way that Bill's running his business with his team is finding great ways to do that, leveraging technology, as well as thinking about how we serve each customer uniquely. You also look at the rest of our businesses. Our dedicated business has had probably, I think, one of the most impressive runs on double-digit returns. I believe it's over 10 years. That portfolio continues to get stronger. Our pipeline is significant. We've got a goal of growing 800 to 1,000 trucks again this year. That pipeline is increasing. Again, one other thing related to this capacity change and also the regulatory rulings or the U.S. Supreme Court ruling on carrier vetting, that's going to help our dedicated business as well expand.
Yeah.
Really make sure, again, whoever you're working with, whether it's your internal private fleet operations or external, you've got the safest people managing and mitigating risk and also creating value. That gives us a lot of kind of encouragement about where we're at in that pipeline and continuing to grow that business at the return profile it is. I don't know, did you have any other thoughts on?
Yeah, I would just say, you hit on it, Spencer, but go back to mid-year last year, Darren laid out, we were roughly a seven margin intermodal. He laid out a pathway to the bottom end of the 10-12. A point from cost, point from price, point from volume. I would say on the cost side, we're executing $100 million was the target for cost to serve. We're on $130 million run rate. I think you could say we've got the point from cost in intermodal.
I think we've done a lot of good work there. Bill's team has led a lot of productivity improvements with our assets and how we utilize our trucks and our drayage fleet. Volume, I think you've seen us outperform what I would consider normal seasonality the past few quarters intermodal. Making progress toward that point from volume. To me, the area where we still have work to do is on the price side.
Yeah.
Spencer's talked about the dynamics there. Will we get a point from price in one bid season? I don't know. It might take a couple bid seasons to fully realize that point from price. I think we're in good momentum across the board on all three of those aspects to get back to that low end of that 10 - 12 range.
Okay. That's helpful. We got 10 minutes here, certainly if anybody from the audience wants to ask a question, feel free to go ahead. Either we can get you a mic, or I can repeat it, but feel free.
How would robo-trucks affect your Just curious. If it comes along and comes real.
Autonomous truck question. How you guys think-
They all want to-
... about the impact of that?
Yeah, I think it's probably a long runway to where autonomous trucks can help us. I think that, especially on an intermodal section, I think that we're already doing drayage for the rail. There could be a future where certain lanes, maybe in the South, where you could use an autonomous truck. They have a long way to go around what is the cost structure when you deploy that vehicle, and can you make the economics work for your business? Currently, they're all tested well in the South. They're not prepared for weather. There's a long runway, in my mind, before you can find a on-the-road solution that uses autonomous trucks.
I think yard work or maybe the rail terminals will get there to where on a private property you can take advantage of that. In our space, not so much. Long term is even the highway infrastructure, if you were to ever think about it being competitive of other shipments, you need a lot more trucks, if you were to try to compete with intermodal in that space or anything like that. I think there are aspects of autonomous trucks that could help the current driver situation, make the in-cab experience for a driver more friendly, less intimidating. Maybe you could use the features of autonomous trucks-
Yeah.
... in the future to attract new entrants. I think that's optimism that I see from that front that could help our industry.
You bet.
I would add, I think there's an opportunity to use some of that technology that's in an autonomous truck, put it in the cabs with our drivers today to make our drivers even more safe. We're on three years of record safety currently. If we can take some of that technology and supplement that in our cabs with our drivers to further increase our safety performance, I think that's something we'd be interested in exploring, and see a better use case in the near term than a full autonomous truck.
Yeah.
I wanted to touch on dedicated as well. You noted some of the dynamics around Montgomery being a positive for dedicated. It also seems that when we get into these types of markets, you do see the private fleet start to pull back to some extent because it becomes more challenging to operate. Obviously, driver availability is going to start to get a little bit stretched here. How do you think about the opportunity for dedicated? I know that's the one segment, which I think because of the degree of predictability you guys have some guidance out there for that this year. Not necessarily asking you to update that, but maybe think bigger picture about the opportunity around dedicated.
We think that our business, from a dedicated perspective, we really go after private fleets.
Yeah.
I think that's a little bit unique than maybe capacity fleets that are branded dedicated elsewhere. In that private fleet conversion, our value proposition really comes into the opportunity to, A, provide talent in the cab, also in the operations, as well as then, B, mitigate risk. Risk specifically, I want to click into insurance for a second. Really, the potential changes, none of us know what this impact will be on insurance in our industry, requirements across the board, whether it's carriers, private fleets, brokers, or others, I think are going to change dramatically.
As that happens, again, managing that risk and protecting a brand, as Andrew said, we've completed three record years of safety performance. We're in our fourth year right now and have the same trajectory, and that's something that really a private fleet, if you don't have the talent and the technology, it's very hard for them to keep up with the challenges of safety and then investing in the equipment. The third is really, so you got talent, you got risk, then also capital allocation. We think our opportunity to do that at scale or at each individual customer and give them an opportunity to focus on their business really strengthens our value proposition, which is why our pipeline is really strong right now and accelerating.
That would be, I guess, as we think about the pipeline opportunity, as we see tightness continue, that would probably be something that builds and becomes a bigger opportunity beyond 2026. It starts to become something that's more of a 2027 and beyond type of opportunity for you?
Yeah, exactly. I think the other part of our dedicated business, not only is the long-term nature of the-
Yeah.
... contracts that we sign, typically five -plus years, but also our sales cycle. These are C-level sales decisions where people are saying, "Okay, we're going to take and rebrand our equipment with J.B. Hunt, and J.B. Hunt's going to provide the drivers and represent our business." They're significant decisions, and that sales cycle can be 9- 12 months. To your point, as the pipeline increases, that gives us more momentum as we turn the corner into 2027.
I want to spend the last couple minutes talking about ICS, because obviously that's a dynamic part of the market right now with what's going on in brokerage. Maybe the first question, just to get right to it, is have you guys changed your carrier vetting standards now, post the Montgomery ruling?
Yeah, I appreciate that question. We're confident in the standards and our processes that we had in place over the last several years, way ahead of this ruling. The answer to that is no, we haven't changed anything. I think the way that we go out and vet and select and also verify carriers are who they say they are, drivers are who they say they are. We put those processes in place many years ago. I'll also say one of the key catalysts, which is another big challenge in our industry, is cargo theft.
Yeah.
Having to put in preventative measures to protect our customers' cargo really helped us get ahead of having the need to make any other changes. We feel real confident about the processes we have to make sure we've got good, reliable, safe capacity in our ICS business.
Chris, I would just add to that. I think we consider ourselves above industry norm in terms of a carrier vetting standpoint. We don't use conditional carriers and we don't tender loads to them. A carrier has to have been in service for at least a year before we'll tender a load there. I think that is part of our standard today, and I think that's a little bit above where the overall industry is from a vetting standpoint.
Yep.
That makes sense. We've done some work around this discussion, you talk to some of the private brokers out there, they'll sort of suggest that maybe 50% of their volume is going down into sort of the 20% bottom pool of the carrier world. I'm not sure if that's something that you guys think is right. I guess it would suggest that if there are some vetting standard changes, it could have an outsized impact on the spot market. Kind of goes back to the beginning of the conversation we were having about structural changes in the market.
Yeah.
I don't know if you have an opinion about how to think about that. I'm not suggesting you guys necessarily are playing on that end of the pool, I'm kind of curious your thoughts.
Well, maybe I'll have to let them answer for however they've been doing business and how it's set up, but I'll share one bit of information with you. As we looked through and changed our processes and really kind of implemented the standards that Andrew just talked about. We reduced our active carrier, accessible carrier capacity by almost 50%.
Okay.
Now, that was many years ago, and specifically associated with making sure that we had a carrier who is who they said they are, and a driver who is who they say they are. We eliminated 50% of our accessible capacity for our brokerage unit. Now, what did that do? Well, it absolutely compressed margins in the moment. Was it the right thing to do to protect our customers' freight? Absolutely.
Yeah.
Anyway, that's just an indication of the steps that we've taken and the potential impact.
Yeah. Being ahead of the market probably there.
Yep.
Okay, I guess in terms of just market dynamics within ICS, we've heard of and seen more spot activity. Obviously, you're going through the contracting bid season. I don't know what your thoughts are around gross margin progression, it feels like maybe we're past the worst, I don't know. Maybe this spike in spot rates means we're not past the worst. I don't know if you had any thoughts around gross margins and ICS.
Well, I would just say when you think about being past the worst, you mentioned just a little bit ago that you saw May change again-
Yeah.
... have another step change. That would indicate that there's still a lot of challenges out there from a capacity and cost of capacity, you see spot prices continuing to accelerate. The one thing that I don't know that we know, or our customers know is, are we going to have a leveling or is this going to continue to accelerate? Time will tell on that aspect. Definitely seeing pressure and the cost of capacity continuing, and that's why we have conversations with our customers to make sure that they're working with us, their price point is relevant to that cost.
Got it. That makes sense.
Yeah.
I guess as we sort of wrap up here, I think the balance sheet and CapEx has pulled back. You guys have capacity. Maybe one of the last questions I'll have is about capacity, because that has been one of the discussions in the market. Box is stacked. Obviously, we're at record volume. There's an opportunity probably to pull some more of those boxes off, but how do you think about the relationship of box capacity to how you approach the pricing discussions with your customers? Is that the right piece of capacity we should be focused on, or is it something different?
Well, I would say something we've shared many times, we're proud of the strategies that we put in place regarding capital and pre-funding our growth. We are built for this moment in time.
Yeah.
For our customers, and our customers know that, so they have confidence in that continued conversion from highway to intermodal. I think as we look forward, definitely looking at where our capacity is, box turns, and all that kind of stuff, but specifically stay focused on the highway side. Our customers know that we can continue to grow into their business needs. As an industry, I think intermodal still has plenty of boxes right now, but an opportunity to fill those up is happening quickly.
Chris, I would just add, you're right. We've pre-funded our capacity in intermodal. We're not pricing to fill boxes. We're being disciplined with our approach during bid season, and making sure that the way we price our freight generates the return and margin profile we expect.
Makes sense.
Okay. We are out of time. I could probably ask you six or seven more questions. I appreciate you coming here and spending some time with us. Always very helpful. Thanks very much, guys. Appreciate it.
All right. Thanks for having us, Chris.
Thank you.
Okay.