Dry van capacity-demand balance at average level for this time of year   

Morgan Stanley's dry van truckload freight index indicates capacity-demand balance remains very near the long term average for this time of year but that capacity is more tight than in 2010. Capacity had been more readily available than 2010 since the lines crossed in April, but they crossed again in September, indicating tighter capacity through the Fall. Our view is that until the economy recovers, we are not likely to see significantly tighter capacity and that is unlikely until some time in 2012. 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.

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