TL van capacity more readily available as 2011 ends   

Morgan Stanley's dry van truckload freight index indicates capacity-demand balance remains very near the long term average for this time of year and very similar to the end of 2010. Capacity had been more readily available than 2010 after the lines crossed in April, but they crossed again in September, indicating tighter capacity through the Fall. At year-end the 2011 and 2010 lines came back together. Our view is that until the economy recovers, we are not likely to see significantly tighter capacity and that is unlikely until some time later 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