Dry van truckload capacity is getting tighter   

Morgan Stanley's dry van truckload freight index indicates capacity is tightening again. Capacity is somewhat tighter than the '95-'10 average for this time of year. The Q2 index was below the trucking boom years of 2004 and 2005, but as Q3 starts the gap is closing. Capacity is not quite as tight as this time last year, 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