Schneider National, Inc. Morgan Stanley's 14th Annual Laguna Conference

Saving the best for last on day one, we have Schneider, and very happy to welcome back President and CEO, Jim Filter.

Thank you. Jim, welcome to Laguna.

CFO, Darrell Campbell, and Vice President of Investor Relations and Corporate Finance, Christyne McGarvey. Gentlemen, thanks so much for being here. Obviously, focus has been very much on the cycle, and the goods and bads that come with it, and we have seen both sides of that today. Maybe just at a high level, I will have you start with just what are you seeing out there and kind of when you consider all these moving parts, is that a net good or a net bad guy for you?

Yeah. Start out with a little bit on demand.

Sure which has been stable.

There's some pockets where we're seeing some areas of strength.

But the huge drivers of auto and homes, really not a lot of activity, but it's not falling backwards either. All the activity that we've seen has been in capacity, and we've been talking about this for multiple years, that we saw 50,000 drivers come into the long-haul truck market in a short period of time. At a time that we had been talking about, people aren't generally moving into this industry, and they were coming in at a cost point that was far below what we saw as rational.

So we knew some things were not playing by the same rules as everybody else. We didn't precisely know it early on.

Yep. But after, this was probably 2 years ago, we were starting to see some things already that we understood.

There was no standard for Entry-Level Driver Training, and so it was really easy to go to a country, where you could claim asylum, bring drivers in, train them in a couple of hours- train them in a classroom. Yes, exactly. Then, put them on a road and what we've seen more recently that we've uncovered are ELDs, which- Yep have been in place since 2017.

They were installed to make sure that drivers weren't cheating on their logbooks. But prior to 2017, it was very difficult for a driver to cheat on their logbooks.

Okay. Because you still need to be able to line times up from a waybill to your logbook.

Oh, okay. Mm-hmm. to a bill of lading.

But one thing that we saw, all of these ELDs are self-certified, and there was over 1,000 of them here in the U.S., only about 40 in Canada, where they're certified by the government.