MORGAN STANLEY RESEARCH

February 4, 2011
Freight Transportation

5. CSA is a Major Factor in Negotiations

Will CSA and carrier safety scores be a large factor in your upcoming rate
negotiations and contract strategy?
Yes, a significant factor Yes, a moderate factor
Yes, but a minor factor No, no impact
100%
15% 12%
90% 26%  Majority see CSA as a
% of Respondents

80% minor/moderate factor in

70% 28% 30% rate negotiations
60% 23%
50%
40% 39% 41% 33%
30%
20%
10% 19% 17% 18%
0%
All Shippers Large Shippers Small Shippers
Discounts Shippers would need to use a Carrier with Safety Alerts
60% 55%
% of Respondents

50%
40%
30% 24%
20%
10% 7%
3% 3% 2% 4%
1%
0%
A discount is 1% - 5% 6% - 10% 11% - 15% 16% - 20% 20% - 30% 30%+ We will not use
not required a carrier with
poor CSA
scores at any
price
William J. Greene, CFA, (212) 761-8017, william.greene@morganstanley.com Source: Morgan Stanley Freight Pulse Survey 16