Morgan Stanley indicates dry van capacity shortage continues to ease   

Morgan Stanley's dry van truckload freight index indicates significant easing of tight capacity. Capacity tightness is about at the '95-'10 average for this time of year, as the index has dropped quite a bit in the last few weeks. The Q2 index is now well below the trucking boom years of 2004 and 2005. Capacity is also not as tight as in Q2 2010, when capacity was getting tighter and spot market prices were rising. The index measures incremental demand for dry-van truckload services compared to incremental supply. The higher the index the tighter is capacity relative to demand when compared to a prior period. This data raises questions about whether or not van capacity will tighten significantly in 2011, or perhaps remain more balanced until we see a broader economic recovery.

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