Global Novel Coronavirus Update

"This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”

February 18, 2021

2/17/2021

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Join Supply Chain Virtual Connecthosted by UPS Supply Chain Solutions

2/17/2021

Welcome to our first UPS SCS virtual conference covering the latest trends and strategy in today's global supply chains.

We have a great line-up of supply chain topics that you don't want to miss out on, including updates on COVID Vaccine Logistics, the Future of Forwarding, Hot Topics in Trade and more.

Register Today

The first 1,000 people to sign up and submit their mailing address before February 20, 2021 will be shipped free UPS Swag!

Wednesday, March 10, 2021, 1PM-5PM (EST)

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Number of confirmed COVID-19 cases reported as of February, 17th

The virus continues to affect every region of the world, but some countries are experiencing high rates of infection.

2/17/2021

"This presentation contains information we have gathered from various public sources including reference materials, webinars and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”

*The New York Times

2/17/2021

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2020 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.

Global air cargo capacity declined 13% in the last two weeks compared to last year

2/17/2021

Most trade lanes showing double digit decline compared to the last year. Transatlantic at -29% & LATAM at -52% decline.

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2020 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.

UPS Supply Chain Solutions

Stay Informed

• Register to receive important communications from UPS

• Find the latest information on Air Freight Capacity Surcharges

• Track shipment status through UPS Flex Global View®

• International Air Transport Association (IATA) – iata.org

• World Health Organization (WHO) – who.int

2/17/2021

Our highest priority is to protect the health and safety of our employees, customers, and suppliers. UPS® is confident it can do so while maintaining

global operations, except where constrained by government restrictions or other circumstances beyond its control. The Novel Coronavirus

pandemic has created unprecedented complexities, which have required us to constantly reassess our operations and take mitigating actions to

minimize disruption to our customers.

Consider cost-effective multi-modal alternatives to traditional air freight

Asia to North America

Asia to Mexico

Europe to North America

North America to Europe

ISMEA to North America

Book a Shipment Online

Book now at ups.com/supplychain

Customer First. People Led. Innovation Driven.

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved. 2/17/2021

COVID-19 Vaccine Distribution

Source: CNBC; today.com

Market Updates* • The United Nations (UN) children’s fund announced today that as part

of its vaccine distribution efforts it has signed agreements with

AirBridgeCargo, Air France KLM Martinair (AFKLMP) Cargo, Astral

Aviation, Brussels Airlines, Cargolux, Cathay Pacific, Emirates

SkyCargo, Etihad Cargo, Ethiopian Airlines Cargo, IAG Cargo, Korean

Air, Lufthansa Cargo, Qatar Airways, Saudia, Singapore Airlines and

United.

• Flights from Brussels Airport, carrying Pfizer’s Comirnaty Covid-19

vaccine, have been flown to more than 40 global destinations since

November last year.

• Mexico gets AstraZeneca COVID vaccine shipment from India

This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”

UPS Updates• As per ShipMatrix, despite the added challenge of moving vaccines,

UPS’ on-time delivery rates during peak didn’t falter from the year

before.

• UPS joins the HOPE Consortium, to expedite rapid global delivery of

COVID-19 vaccines – UAE

• UPS HEALTHCARE: New delivery capacity for Covid-19 vaccines

Coronavirus Vaccinations Around the World

*The New York Times

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved. 2/17/2021

Brexit Updates

Source: *Seabury ; CNBC; today.com

Market Updates*

• Post-Brexit Northern Ireland volumes shipping via Scotland instead of Dublin

• As per Port Boulogne Calais chairman Jean-Marc Puissesseau the phasing-in of

additional UK border checks will be “smooth”

• Now only 12% of trucks coming from the UK are being asked to park and go

through additional checks, with another 3% of freight volumes coming via

ferry being subject to customs controls compared to 45% in January .”

UPS Updates

• UPS SCS is working without constraints

• Comprehensive guidelines for importers and exporters available on

ups.com

• EU/UK Trade & Cooperation Agreement (TCA)

• UK Brexit Guidence

This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS. © 2020 United Parcel service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Socioeconomic Updates• Eurozone GDP fell by a historic 6.8% in 2020

• EU orders additional 200 million Pfizer / BioNTech vaccines

• Johnson & Johnson coronavirus vaccine submitted for EU approval

• WHO warns that infections down in Europe but it is still vulnerable

• Ten Schengen countries (Germany, Spain, the Czech Republic,

Denmark, Hungary, Austria, Portugal, Finland, Belgium and

Norway) introduced border controls for health reasons

Ocean Freight Updates • Limitation of export delivery acceptance at Hamburg

Terminals

• Strong overall cargo volume, industrial action, inclement weather

together with ongoing congestions and delays in most European ports

leading to disruptions of the vessel network, all Hamburg terminals are

now experiencing maximum yard utilization.

• General recommendation to make pre-bookings 4-6 weeks prior to

vessel sailing date & explore possibilities to divert to LCL Consol Box /

PLCL / Regular LCL

Inland Transportation

Air Freight Updates • The increase in demand due to Chinese New Year. February volumes are up by

40% compared to last year

• Shipping line CMA CGM to launch A330F air cargo operation

• AirBridgeCargo diverts flights as Frankfurt handling comes under pressure

• The High Court has overturned a UK government decision to allow the

development of Manston Airport into a cargo hub

• Many routes in and out of Heathrow becoming non-viable as the UK

imposes severe quarantine restrictions on arrivals

Europe Update for February 18th

This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”

2/17/2021

• Congestion between Germany and a number of its eastern neighbors

observed

• Tougher border controls with both the Czech Republic and Austria in place;

demands for test result from truck drivers crossing border

• Leading to long queues at the border but also disruption to freight transport

across Eastern Europe

• No discussion of closing the border with Poland or Denmark but there is some

talk of extending controls at the French border.

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS. © 2020 United Parcel service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Socioeconomic Updates• India: Over 87 lakh Covid-19 vaccine doses administered in

India so far

• Follow Covid-19 norms or face fresh lockdown, warns

Maharashtra CM

• Pakistan begins registration of elderly for Covid-19

vaccination

• Melbourne and Auckland snap lockdowns to end

• Sri Lanka is now open to travelers

Ocean Freight Updates • Space & equipment’s continue to be extremely tight for

all major ISMEA location (IN/PK in specific).

• Carriers have started allocating space based on target vessels

based on cargo readiness for March.

Inland Transportation• Daimler Trucks unveils BharatBenz reefer truck to

move Covid vaccines in India

• CMA CGM launches train service on Western Dedicated Freight

Corridor

• Maersk launched a cross-country rail service in India

Air Freight Updates • Air New Zealand launches Guangzhou PAX-cargo flights

• Dubai International reported a 70% fall in traffic over the past year

• EK suspends flights to HRE from 13th Feb to 18th Feb, flights to be

operated DXB-LUN instead of DXB-HRE-LUN

• Kenya Airways increasing its cargo capacity by removing the seats from

two of its Boeing 787 Dreamliner aircrafts

• QA Airways increasing the flights frequency to the USA

• Saudia Airlines announced its suspended PAX flights will

be operating as Cargo only

ISMEA Update for February 18th

This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”

2/17/2021

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS. © 2020 United Parcel service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Socioeconomic Updates

• Australia: state of Victoria entered a five-day

lockdown on Feb 13

• Korea: the local health authority eased the social

distancing rule from Level 2.5 to Level 2.0 for the

greater Seoul metropolitan area and Level 1.5 for

other areas, for two weeks starting Feb 15

• New Zealand: Auckland is at Alert Level 3. The rest

of New Zealand is at Alert Level 2

• Singapore: On Feb 9, Ministry of Health

announced that they will tighten its border measures

for people with travel history to Vietnam. Visitors

from New South Wales are now allowed to enter

Singapore

• Philippines: Government will ease restrictions

starting from Feb 15, allowing reopening of leisure

establishments

Ocean Freight Updates

• Port congestion in the whole region

• China: lock down and suspension of local transportation led

to some delays

• New Zealand: Pick up and deliveries of freight in Auckland

is only to essential industries, so expect delays for imports

Air Freight Updates

• Australia: International flights to Melbourne stopped until Feb 17

• Korea: suspension of operations for direct flights

departing the UK scheduled for until the 11th will increase

until the 25th of February

• New Zealand: Pick up and deliveries of freight in

Auckland is only to essential industries, delays for

imports expected

APAC Update for February 18th

This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”

2/17/2021

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS. © 2020 United Parcel service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Socioeconomic Updates• Biden “Made in America” executive order advocates for 100-

year-old U.S. maritime law

• Biden signs executive order to strengthen COVID supply

chains

• Importers face massive hike in ocean contract costs

• Maritime sector nervous about chances for COVID-19 relief

New world record set for shipping rates: $350,000 per day

• As the lagging U.S. vaccine rollout accelerates, more

pharmacies will begin distributing doses to high-risk

groups.

Ocean Freight Updates • Ports press Congress, Biden for emergency funds

[api-esp.piano.io]

• Port of Long Beach has best January on record

South Carolina Ports rides rails to robust January

• Port of LA will pay container terminals for efficiency

gains

• COVID outbreak could cripple California container

ports

Inland Transportation

• Crude tankers stuck in ‘rate hell’ but floating-storage pain

wanes

• Truckers chain up as snowstorms hit several Western states

this week

• Trucking markets: Strong trucking backdrop should resume

after slow holiday week

• Trucking industry lender's quarterly data shows significant

market improvement.

Air Freight Updates • Airlines absorb $391 billion revenue shortfall in 2020

• Lack of passenger flights holds down airfreight

• United Airlines cargo planes to share space again with

passengers

• UPS expanding at Kansas City airport as e-

commerce surges

• New air cargo security standards could gum up e-

commerce exports

United States Update for February 18th

This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”

2/17/2021

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS. © 2020 United Parcel service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Socioeconomic Updates• Canada's vaccine rollout is slower than other countries

• Quebec imposes curfew as part of 4-week lockdown

• Canada clears 4 firms to bid on COVID-19 vaccine

distribution contract

• Transport Canada revises rules on worker fatigue in the rail

industry

• Canada COVID-19 vaccine distribution plans attract

big firms

• Pfizer plans ‘just-in-time’ COVID-19 vaccine

distribution in Canada

Ocean Freight Updates

• Ports are operational. Cargo transportation is still

allowed

• Slow in/out processing and delays in customs

clearance

Inland Transportation

• Daily pickups and deliveries except where restrained by

government

Air Freight Updates • New COVID-19 boarding rules for airlines will be tighter than

expected

• Air Canada finalizes decision to convert aircraft to freighters

• Air Canada eyes converted freighters to capitalize on cargo

boom

• Air Canada is resuming many of its international

flights, heading to the U.S., the Caribbean, South

America, Europe and the Pacific

Canada Update for February 18th

This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”

2/17/2021

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS. © 2020 United Parcel service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Socioeconomic Updates• Pfizer applies for full COVID-19 vaccine approval in Brazil

• Oil prices shake off COVID blues as Brent hits $60

• Brazil scrambles to secure COVID vaccine from India

• Mexico, Chile and Costa Rica become the first countries in

Latin America to begin vaccination campaign

• Mexico Bucks Latin America Trend as Inflation Doubles Amid

Virus

• Mexico once again No. 1 US trade partner

• Colombia expands reopening as coronavirus

cases stabilize

Ocean Freight Updates

• Italian firm building $150M shipyard in Mexico

• Ocean Port Restrictions (3 countries: DO, HN, PR)

• DO: Operations had been restricted up to 6pm

• HN: Limited service to Puerto Cortez Port

• PR: No passenger vessel allowed

Inland Transportation

• Despite some successes, Mexico still struggles with

fuel theft

• Mexican rail blockade continues to affect freight flows

• US-Mexico truck crossings decline 22% at Port Laredo

• Customs operation impacted (9 Countries: AR, CR, DO, EC,

GT, PA, PE, SR, VE)

Air Freight Updates • Dubai airline launches new freighter service to Mexico

• LATAM Common Carriage flights were reduced or forbidden

to/from US, Europe & Asia (19 countries: AR, BO, BR, CL, CO,

CR, DO, EC, GT, HN, NI, PA, PE, PR, PY, SR, SV, UY, VE)

LATAM Update for February 18th

This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”

2/17/2021

Thank You

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Sources

• Official sources (WHO, Governments, etc.),** UPS Internal Sources Seabury

• Carriers • Sky cargo

• Emirates

• Lufthansa

• News Media Brussels times

New York Times

BBC News

Times of India

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS. © 2020 United Parcel service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.2/17/2021