Hub Group, Inc.

The two new entrants on the UP we've competed with for years, so it's really nothing new. I would suggest that the Union Pacific is right now investing about $600 million into the intermodal product. Their service thus far has been under where, in fact, their on-time performance under where we would want and certainly where they would want. But they certainly are making a lot of investments in personnel, adding on locomotives. And so we are hopeful that the transition will be smooth, and they certainly are working very diligently towards it. From our standpoint, we're also trying to enhance our service levels and also our operations, having less time on the street for containers when they're empty, that type of thing, which helps with the flow of chassis, et cetera. We're the Union Pacific's largest customer, and we have a great relationship with them, and they're a very good operating railroad. So we're looking forward to continuing to grow on the UP and Norfolk Southern.

And when it comes to expanding your dray driver capacity in-house, can you just talk about where that percentage is now maybe versus the last couple of quarters and what those – what those markets look like given just the overall driver market, but again, others trying to rearrange the network. I don't know if that has any overlapping impact in some of the areas you're looking to add people, and is equipment a problem still?

No, we haven't had an issue with delivery of equipment. We have seen some delays in some of our containers coming over, but the commitments that Our OEMs made to us on tractors have continued to be filled, so we feel, you know, very good about that. You know, from a driver hiring and percentage rate perspective, we have seen an increase in our ability to bring on new drivers. Part of that is actions we've taken around wages, but also, you know, I think we are much better at marketing and recruiting to get new drivers as well, and our percentage increase of in-house gray, about 400 basis points sequentially quarter to quarter. So we feel really good about the progress we're making there. And actually, we've seen an increase thus far in the third quarter as well, sequentially from that 400 basis point improvement. So, you know, all positive there.