Refrigerated capacity is very tight   

Morgan Stanley's refrigerated truckload freight index starts 2011 at a very high level indicating very tight capacity for this time of year. The index has been rising over the last few months. The index is not far below the level of Q2 2010 when capacity was extremely tight. Refrigerated capacity continues to be very tight relative to 2009 and to most other recent years. The exception is the hurricane-induced capacity shortages at the end of 2005 and the strong freight market at the end of 2004. The pricing environment in this segment clearly favors the carriers at this point. The index measures incremental demand for refrigerated truckload services compared to incremental supply. The higher the index the tighter is capacity relative to demand when compared to a prior period.

Graph reproduced with permission from Morgan Stanley. For more information contact: Adam Longson at Adam.Longson@morganstanley.com or Bill Green at William.Greene@morganstanley.com.