Refrigerated capacity remains tight, but much less so than in recent months   

Morgan Stanley's refrigerated freight index declined dramatically in the last two months but refrigerated capacity remains tighter than normal for this time of year. The index was up and down through Q2 and early Q3, but then soared to a very high level not only for 2011, but for for the series before coming back to earth as the year ended. The pricing environment in this segment still 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 Greene at William.Greene@morganstanley.com