Refrigerated capacity is tighter than normal for Q1   

Morgan Stanley's refrigerated freight index declined dramatically in the last few months but refrigerated capacity remains tighter than normal for this time of year. From August through the early December refrigerated capacity was extremely tight compared to prior years, but the series came back to earth as the year ended. While 2012 begins with somewhat less constrained capacity than early 2011, capacity is tighter than normal and the pricing environment in this segment still favors the carriers. 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