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Capacity Gaining On Demand

The proprietary Truckload Freight Index reported that capacity increased faster than demand grew through May 26th. Morgan Stanley, which publishes the Index, suggested the carriers’ rush to replace tractors ahead of the 2007 emissions standards was increasing the supply of equipment at a faster pace than freight demand was rising. Shippers reported it was easier to find truckload capacity and, anecdotally, they indicated some slowing in price increases. Average pricing trends in the second quarter, said Morgan Stanley, were tracking at the lower end of the analyst firm’s 3.5% to 4.5% forecast.

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