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Global Market Insights
"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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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.”
March 11, 2021
3/11/2021
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 12% in the last two weeks compared to last year
3/11/2021
Most trade lanes showing double digit decline compared to the last year except to/from Asia Pacific. Transatlantic at -24% &
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
3/11/2021
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.© 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.
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• EU increases budget to EU4Health programme
• EU will receive 4 million extra Pfizer vaccines by end of March
• Johnson & Johnson confirms delivery of 200 million doses to
EU in 2021
• EU tourism countries to open to vaccinated or tested
travelers from May
• Belgium decided that the standard interval between two
Pfizer injections will be extended to 35 days (five weeks)
Ocean Freight Updates ASIA WB: Equipment shortage a challenge. Some carriers
are also accepting limited UK cargo again.
TATL WB: Expect void sailings to continue through March/April as carriers
try to recover schedule reliability.
• Recommend advanced booking notice at least 5 to 6 weeks prior to
vessel departure & for urgent cargo consider booking on Premium.
• The market is expected to remain strong through the end of Q2 due to
high demand and capacity constraints. Shortages of Reefer containers
and 40’/HC dry, in particular in Germany, Italy, Spain and Portugal.
Ongoing severe equipment shortage in Turkey.
Inland Transportation
Air Freight Updates • Lufthansa Cargo expects a good 2021 and rates to ease in H2
• Lufthansa Cargo downplays impact of vaccine volumes
• Cathy Pacific reports multi-billion dollar loss, despite cargo performance
• Network Airline Services renews with WFS in Belgium and the Netherlands
• IATA: Air cargo demand beats 2019 levels in January
• Heathrow (LHR): Due to Covid-19 Government measure cargo
recovery is getting delayed
Europe Update for March 11th
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.”
3/11/2021
• Border crossing between Switzerland –Germany; Switzerland –
Italy; Hungary – Romania constrained
• MPs urge UK to stop ‘unilateral’ action on Northern Ireland Brexit checks
• More than 25% of trucks leaving the UK for EU are empty as exports dive.
• Trucks were driving 12% less compared to January 2020 due to the combined
effects of covid and Brexit.
• Trucks were driving 2% less than in December mainly due to post-Brexit
chaos.
*Source: SixFold/ Theloadstar
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.
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• Mauritius has suspended all inbound international passenger
movements for a week effective from 6th March
• Emirates’ passenger flights from South Africa to remain
suspended until March 20th
• 2,400 doses of fake covid-19 vaccines have been seized in
South Africa
• India has completed over 20 million vaccinations
since 16th Jan.
Ocean Freight Updates • India makes a move on container manufacturing
• West Container Terminal at Colombo port, Sri will be a
public (Sri Lanka Ports Authority) and private partnerships
collaborated development
• Trans-shipment at SIN/CMB facing 1-3 week delays. Equipment
shortages reported in Mundra and Delhi regions,
• Heavy Lift charge implemented ex-India to the Europe
(MUN/NSA/HZR) for cargo weight over 27.99 tons by Hapag-
Lloyd
Inland Transportation
• UPS services continue to operate for both pickup and
delivery in postal codes across cities in India in line with
local restrictions-however, due to limited intra-country line
haul options, slight delays can be expected.
• Longer transit times for exports from India to Asia and the Middle
East, and imports into India from US/EU due to certain restrictions
are expected
Air Freight Updates • EK – additional frequency between DXB-ACC-ABJ, 6x weekly
effective 1st April
• Kenya based freighter operator, Astral Aviation, names Sharjah Airport
as its Middle East hub as part of its expansion in the region
• EK – DXB to Maldives, additional frequency from 28th Mar to
18th Apr
• EK – DXB to Seychelles, additional frequency added from
28th Mar to 30th Oct
ISMEA Update for March 11th
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.”
3/11/2021
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
• China: Chinese mainland reported no new locally
transmitted cases in the past week. Despite the impact
of COVID-19 pandemic and uncertainties, China foreign
trade in the first two month was very strong
• Hong Kong: Reported 11,074 cases with 202 deaths. 8
new cases of which 4 are local infections as of March
6th
• Japan: Tokyo, Kanagawa, Saitama and Chiba will
extend the state of emergency until March 21st
• Malaysia: COVID-19 restrictions will be relaxed for
Melaka, Pahang, Terengganu, Sabah, Putrajaya,
Labuan and Perlis. Inter-District travel would now be
permitted in all states except Sabah. Interstate travel is
still prohibited
• Vietnam: COVID-19 vaccination started this week with
the first batch of 117,600 doses received. Social
distancing in the epicenter Hai Duong has been lifted
Ocean Freight Updates
• Port congestion in the whole region
• China: Shortage of truck drivers started before CNY will
continue because of the strict Covid-19 quarantine
measures imposed by the Chinese authorities
Air Freight Updates
• Hong Kong: Cathay Pacific reports multi-billion dollar
loss, despite valiant performance by cargo
• China: Disruption across the ocean supply chain is
creating even more demand for air capacity, and Air Cargo
rates out of China are increasing
APAC Update for March 11th
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.”
3/11/2021
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’s transportation department focuses on aviation
emissions as part of net zero emissions goal for the US
• US will suspend tariffs on UK products for four months, focus
on negotiating a trade deal
• Federal stimulus checks expected to drive surge in e-
commerce shipments
• Biden orders review of transportation sector
• Amid volatile airfreight market, high rates remain constant
• Biden “Made in America” executive order advocates
for 100-year-old U.S. maritime law
Ocean Freight Updates • Los Angeles and Long Beach port congestion is the
worst in its history
• Container backlog at NY-NJ causing dray rates to
increase
• Ports press Congress, Biden for emergency funds
• South Carolina Ports rides rails to robust January
• Port of LA will pay container terminals for efficiency
gains
Inland Transportation• Dallas post-storm intermodal congestion could
continue for a couple more weeks
• Trucking companies lost more jobs than expected in
February
• Crude tankers stuck in ‘rate hell’ but floating-storage pain
wanes
• Trucking industry lender's quarterly data shows significant
market improvement.
Air Freight Updates • IATA predicts airline recovery to start by mid-year 2021
• United Airlines sacrifices cargo capacity to replace grounded
777s
• 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
United States Update for March 11th
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.”
3/11/2021
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• Health Canada approves use of Johnson & Johnson’s
CPVID-10 vaccine, the fourth vaccine approved
• Health Canada allows warmer storage conditions for Pfizer
COVID-19 vaccine
• Canada's vaccine rollout 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
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 March 11th
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.”
3/11/2021
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• COVID-19 cases are surging in many Latin American
countries including Brazil
• Latin America turns to China and Russia for COVID-19
vaccines
• Pfizer applies for full COVID-19 vaccine approval in Brazil
• Oil prices shake off COVID blues as Brent hits $60
• Mexico, Chile and Costa Rica become first countries
in Latin America to begin vaccination campaign
• Mexico once again No. 1 US trade partner
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 March 11th
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.”
3/11/2021
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.3/11/2021