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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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 11, 2021

2/10/2021

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.

Number of confirmed COVID-19 cases reported as of February, 10th

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

2/10/2021

"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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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

2/10/2021

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 17% in the last two weeks compared to last year

2/10/2021

Most trade lanes showing double digit decline compared to the last year. Transatlantic at -37% & LATAM at -49% 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 Solution

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

2/10/2021

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

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. 2/10/2021

COVID-19 Vaccine Distribution

Source: CNBC; today.com

Market Updates*

• South Africa– The combined study from Witwatersrand and Oxford

Universities revealed the AstraZeneca vaccine is less effective in

fighting against Covid-19 variant in South Africa

• The UAE government to prioritize elderly people over next 6 weeks

• Afghanistan received India make Covid-19 vaccines; 25 more countries

in queue for ‘Made in India’ covid-19 vaccines

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. 2/10/2021

Brexit Updates

Source: *Seabury ; CNBC; today.com

Market Updates*

• Traffic still manageable at borders

• About 70% of lorries return back empty from UK to EU which is more than

double of “normal” rate of 30%

• “The Observer” comments that the export volume from UK to EU fell by 68%

compared to same period 2020

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

• European Parliament approves €672.5 billion recovery fund

• Brussels airlines to offer free flight reschedules until end of May

• Merkel called for the extension of Germany’s partial lockdown until 1st

March

• Russia’s Covid-19 Sputnik V vaccine isn’t expected to be ready for

shipment to the EU any time before May or June.

Ocean Freight Updates • Poland: Sever space constraints to US East coast;

Delays due to congestion origin and destination ports

• Service Constraints: ONE- Europe (Adriatic) to the USA

& ISMEA Region: Severe congestion and rolling issues reported.

• Booking Stops:

• ONE- Europe to the Far East till the end of Feb. .

• CMA CGM: Europe to the Far East till the end of Feb

• Extremely tight equipment situation for 20’GP, 40’GP and 40’HC,

affecting their Container Depots stocks across Europe

Inland Transportation

Air Freight Updates • UK has suspended the direct PAX flights from UAE, Rwanda and Burundi

• Denmark lifts temporary ban on the UAE flights

• Long-term air cargo capacity outlook remains uncertain

• Heathrow Airport and an East Midlands consortium have applied for Freeport

status in the UK.

• Companies using Freeports will be able to import goods without paying tariffs

• They have to pay tariff on goods sold into the domestic market, or can

export the final goods without paying UK tariffs.

Europe Update for February 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.”

2/10/2021

• Severe backlogs and truck waiting times at FRA due to high

inbound volumes

• Bad weather conditions causing ground handling delays also in AMS

• China Ocean & Rail service:

• Issues arising due to lack of truck drivers in China

• Truck drivers will return to work on February 23rd after Lunar New year

• Shortage of drivers impacting all the service providers

• UPS offering OCEAN service as a backup solution for ongoing situation

in China

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: Reported 11.5k new cases & 11.8k discharged

• Sputnik V expected to be rolled out in Mar. 2021

• Covaxin trials for kids is expected to start in Mar.

• Pakistan received the country’s first consignment with

500,000 doses from China

• GCC countries urged to impose further measures to

contain the spread of Covid new variant

• Tanzania having no plans for vaccination.

Ocean Freight Updates • Space and equipment continue to be extremely tight

for all major ISMEA locations (IN/PK In specific)

• APAC–ISMEA trade is facing an over booked situation with

vessels booked until end of Feb

• Evergreen Marine Corp has announced Plans through its

subsidiaries to order more than 52,000 containers spending at

least US $45.41 Million

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 • 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 Air Cargo initiated to move on Web Cargo with the features of Real-

time pricing, capacity and e-booking to its forwarders

• 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 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.”

2/10/2021

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: city lock down in Shijiazhuang and Xingtai

has ended. The Sinovac vaccine was granted

conditional market approval by the National Medical

Products Administration on Feb 5

• Japan: extending the state of emergency for

another month until Mar 7. It requests residents to

cut unnecessary outings and businesses to shorten

hours

• Malaysia: extending its near-nationwide movement

control order (MCO) by a fortnight to Feb 18

• Philippines: the Government eased the travel

restriction on over 30 countries with known cases of

COVID-19 variant

Ocean Freight Updates

• Port congestion in all the region

• China: lock down and suspension of local transportation

led to some delays

Air Freight Updates

• Philippines: Delta Airlines temporarily suspend their

flight out MNL from Jan 22 to Mar 27. DL entered into co-

load arrangement with Cebu Pacific for MNL-INC leg

connecting to US bound flights out of ICN

APAC Update for February 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.”

2/10/2021

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 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.”

2/10/2021

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 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.”

2/10/2021

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 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.”

2/10/2021

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.2/10/2021