Market Outlook
Q: When will the freight market turn?
A: The market is still soft with no signs of a near-term inflection; a demand increase is needed for recovery. -

NAST Margin Outlook
Q: Expectations for NAST margins in Q4 and 2025?
A: We're proud of our team's discipline and expect continued improvement, aiming for a combined 30% productivity increase over two years, though growth may slow. -

Impact of Market Inflection
Q: Will we get squeezed when the market turns?
A: Any market change will squeeze margins, but we're better prepared with intelligent pricing and expect to navigate it more effectively than in the past. -

Strategy Amid Weak Demand
Q: What's your plan if demand remains weak?
A: We'll control what we can, leveraging our operating model and strong pricing discipline to deliver results and pursue growth opportunities. -

Sustainability of Productivity Gains
Q: Can you keep improving productivity without market help?
A: Yes; despite significant progress, there's still opportunity, especially with new technologies like Gen AI driving further improvements into 2025. -

Competitive Dynamics
Q: How will industry consolidation affect you?
A: We're focused on controlling what we can; we're not seeing competitive disadvantages and feel confident competing, even as some shift towards asset-based carriers occurs. -

Headcount and Costs
Q: Are personnel costs rising due to higher comp per head?
A: No; the increase is due to variable compensation tied to better results, while we continue to decouple headcount from volume. -

Q: Have you reached equilibrium in resources?
A: We expect ongoing productivity improvements and may not have hit a floor on headcount yet. -

Algorithmic Pricing
Q: How does algorithmic pricing affect margins?
A: Our algorithmic pricing aligns with revenue goals, offering greater opportunity in market pricing while maintaining disciplined revenue management. -

Operating Model Readiness
Q: Can you adjust quickly to spot rate changes?
A: Yes; our new operating model enhances speed and capabilities, but we're not yet seeing signs of a market inflection. -

Revenue Normalization
Q: How much revenue was pulled forward in Q3?
A: Pull-forward impact was not material; Q4 is typically seasonally weaker, and we don't expect it to match Q2 levels. - -