Insurance Cost Increases
Q: Are insurance costs rising, and will charges continue?
A: Yes, we are seeing 50% to 60% increases in insurance premiums for 2024 due to higher claims costs. We believe reserves are now properly valued and do not expect similar charges going forward.

Cost Inflation Impact
Q: How is cost inflation affecting margins?
A: We face cost pressures across wages, equipment costs, maintenance, and railroad rates, impacting margins. We're working with customers to deliver more value and reduce costs together.

Intermodal Volume Momentum
Q: Will Intermodal volume growth continue into 2024?
A: The Q4 volume surge surprised us and customers. Due to this unexpected increase, we are uncertain about early 2024 volumes. Traditionally, Q1 sees a drop from Q4, and we're waiting to see how the year unfolds.

Pricing and Margins
Q: Can Intermodal pricing improve before Truckload pricing?
A: In the Western network, Intermodal pricing may decouple and improve ahead of Truckload rates. In the Eastern network, pricing remains closely tied to Truckload rates. We'll focus on consistent service to justify pricing improvements.

Dedicated Fleet Growth
Q: What is the outlook for Dedicated fleet growth?
A: We plan to sell 1,000 to 1,200 trucks this year, similar to last year, despite some fleet losses. We're focused on backfilling losses and targeting stable markets like private fleets.

Brokerage Profitability Challenges
Q: How can brokerage return to profitability?
A: The brokerage environment remains difficult with declining volumes and rates. We're focusing on cost control and recalibrating our approach to add value to customers. Market conditions need to inflect to improve profitability.

West Coast Port Gains
Q: How will West Coast port shifts affect you?
A: Growth in West Coast imports benefits us. In Q4, Transcontinental volumes grew 13%, reflecting this advantage. Longer hauls may increase revenue per load, but pricing remains uncertain.

Customer Pricing Discussions
Q: How are pricing conversations with shippers going?
A: Customers acknowledge our strong service but are hesitant to accept rate increases due to cost pressures. Competition is intense, and it's early in the bid cycle. We'll leverage our service quality in negotiations.

Intermodal Margin Improvement
Q: What drove Intermodal margin improvements in Q4?
A: Higher volumes allowed us to spread fixed costs over more loads, improving margins. There was no price increase, but volume is now more valuable given our asset base.

Insurance Legislative Efforts
Q: Can legislation help address insurance challenges?
A: We're enhancing safety with inward-facing cameras and Sideguard Assist technology. Despite safety gains, claim costs are rising. We're working with associations for state-level tort reform, though it's a long process.

Truckload Capacity Outlook
Q: When will truckload rates improve?
A: Truckload rates need to increase due to rising costs and capacity exits. While timing is uncertain, we expect rates to improve as capacity tightens.

ICS Contract Mix
Q: Why did contractual business percentage decrease?
A: The decrease to 59% contractual business is partly due to the BNSF acquisition. Our target mix is 50% to 60%, and we expect spot opportunities to grow as the market shifts.

Dedicated EBIT Growth
Q: Is it challenging to grow Dedicated EBIT now?
A: Due to fleet downsizing and loss of momentum, growing Dedicated EBIT is challenging. We're focused on backfilling losses but cannot specify whether this refers to GAAP or non-GAAP figures.