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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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

December 17, 2020

12/16/2020

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 December, 16th

The coronavirus pandemic is ebbing in some of the countries that were hit hard early on, but the number of new cases is growing faster than ever worldwide

12/16/2020

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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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

12/16/2020

https://www.nytimes.com/interactive/2020/world/coronavirus-maps.html

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 18% in the last two weeks compared to last year.

12/16/2020

The Transpacific trade lane shows strong air cargo capacity increases in the last two weeks and is now 1-4% higher compared

to last year

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 Global Freight Forwarding

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

12/16/2020

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

https://gffsolutions.ups.com/Subscription-Management.htmlhttps://www.ups.com/us/en/supplychain/other/surcharges.page?https://fgv.ups-scs.com/loginservices/logOn.nfdo?mkt_tok=eyJpIjoiTURKa05UVmlNVEkyTldNeiIsInQiOiJLTEpKU1FKMlwvTVZnRmJpNWs1d1wvT1RZUVN0Z2FVb2I2YlM4YlRvV3kwcVhsbzc1Uk9PdGtpRTRVZTB3b25LRiticDBtRmw4ejM1VENTanRUZjZnNnpnPT0ifQ%3D%3Dhttp://www.iata.org/http://www.who.int/https://gffsolutions.ups.com/rs/646-DDV-705/images/PLCL Card Asia to NA - Oct 20.pdfhttps://gffsolutions.ups.com/rs/646-DDV-705/images/PLCL Card Asia to Mexico - Oct 20.pdfhttps://gffsolutions.ups.com/rs/646-DDV-705/images/PLCL Card Europe to NA - Oct 20.pdfhttps://gffsolutions.ups.com/rs/646-DDV-705/images/PLCL Card NA to Europe_ISMEA - Oct 20.pdfhttps://gffsolutions.ups.com/rs/646-DDV-705/images/PLCL Card ISMEA to NA - Oct 20.pdfhttps://scsapps.ups.com/gff/indexhttps://scsapps.ups.com/gff/indexhttps://scsapps.ups.com/gff/index

5

15% discount

Only Online Bookings*

Hong Kong-Europe-Hong Kong

UPS® Forwarding HUB

Holiday Season Offer

Book Now

* Terms & conditions apply. Discount applicable on UPS® Consolidated Air Freight (EC)rates only. Offer valid for online bookings through UPS® Forwarding Hub only, until

December 23rd, 2020. Eligible countries: Hong Kong-Austria/Czech Republic/Germany/Hungary/Poland/Romania/Slovakia/Switzerland-Hong Kong

https://scsapps.ups.com/gff/quotes/

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. 12/16/2020

COVID-19 Vaccine Distribution

Source: *Seabury ; CNBC; today.com

Market Updates* • Air transport of vaccine will ramp up from January onwards from Europe & India

• International order of vaccine doses: EU(1.3Bn), US(700M) & China(620M)

• 60,000 tonnes of vaccine demand expected in 2020-2022, to be transferred via Air freight

• Europe will be the largest producer of vaccine.

• We expect impact on air capacity for a longer period of time due to vaccine distribution.

• Impact will be mitigated due to the restriction on amount of doses per flight as well as the

restriction due to storage capabilities of importing countries

• Dry Ice allowance limits batch size per aircraft. As per industry experts between 3 tonnes

(A330/B787) and 15 tonnes (B777F) of vaccines, packaging and dry ice can be carried

per aircraft. This will likely to increase total number of flights carrying vaccine.

UPS Updates

• The first Covid vaccine shipments arrived for U.S. distribution

• UPS executive interview on massive distribution of vaccine

• Pfizer begins shipping COVID-19 vaccines with UPS

https://www.nbcnews.com/nightly-news/video/planes-carrying-covid-vaccine-depart-michigan-97662533808?linkId=107098810https://abcnews.go.com/GMA/News/video/ups-executive-shares-latest-covid-19-vaccine-distribution-74711582?linkId=107097910https://www.today.com/video/pfizer-begins-shipping-covid-19-vaccines-97646149916?linkId=107093243

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• The Netherlands under a “strict lockdown” from Dec.15th till Jan.19th

• Germany imposed a “hard lockdown” until Jan. 10th

• Schools and non-essential businesses are closed

• Only essential businesses such as supermarkets and banks are

allowed to remain open

• UK: London, Essex and parts of Hertfordshire moved

into tier three restrictions

• EU set to approve Pfizer Covid-19 vaccine before Christmas

Ocean Freight Updates • Tight capacity, shortage of equipment & congestion in

UK

• Major Chinese container ports, have cut UK import allocations to

mitigate UK port congestion.

• Remaining allocations are heavily overbooked resulting in severe

backlogs developing in busy Chinese ports including Yantian,

Ningbo, Shanghai and Qingdao.

Inland Transportation• Rail: Heavy congestion at borders of Alashankou & Erlanhot, due

too many block trains - waiting for transfer

• Extreme shortage of wagon & backlog at China railheads

• To mitigate future backlog, Chinese Rail Bureau has suspend all scheduled

departures in coming weeks

• UPS console box having departure on Dec-23 & 30th are affected and delayed

accordingly.. New departure schedule for January, 2020 will be disclosed soon

• Switch to other transportation mode (air/ocean) recommended for urgent

shipments

Road: European road freight market to recover with a CAGR of 3.4% from 2020 -

2024*

Air Freight Updates • Europe–Transatlantic trade lane: the capacity on the Transatlantic is still at -

30%

• Further increase in air freight rate expected in Q1, 2021, by increased demand

from various industries, including Healthcare, Industrial Manufacturing and High

Tech

• As an alternative for air freight, UPS is offering US LCL service

from Europe to US four key destinations (New York,

Chicago, Charleston & Atlanta)

• In addition, UPS offers its consolidation box from Antwerp to

New York, weekly departure schedule

Europe Update for December 17th

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.”

*Ti-insight- post covid-19 forecasts of European road freight transport growth-2020-2024

12/16/2020

https://www.ti-insight.com/whitepapers/post-covid-19-forecasts-european-road-freight-transport-growth-2020-2024-2/?utm_medium=email&utm_campaign=Road Freight Post-Covid Market Forecasts Whitepaper&utm_content=Road Freight Post-Covid Market Forecasts Whitepaper+CID_1bb9996eda0af6804999113100c0a5cc&utm_source=Campaign Monitor&utm_term=Download

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.

12/16/2020

US LCL

Europe to US

New Simplified pricing

Multiple weekly departure

For more information please contact your Account Representative

The US LCL Offering

• 6 countries of origin (BE, NL, FR, GB, DE & IT)

• 4 key destinations (New York, Chicago, Charleston & Atlanta)

• UPS also offers its own Consol box from Antwerp to New York

with a weekly departure service

Key Features

• Door-to-door/CFS-to-CFS service

• Multiple pick-up & delivery option

• Competitive Rates; Dedicated customs experts

• Insurance available on request

• End-to-end shipment visibility (FGV)

• More Port options & Shipping Dangerous goods possible

*The green zone on map are the destinations for UPS owned consol box.

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• Panama's government approved the emergency use of the

vaccine by Pfizer & BioNTech

• The delivery of the first batch expected in the first quarter of

2021

• India: State of Bihar to provide free Covid-19 vaccination in

the state

• Nigerian state shuts schools amid spike in virus cases

• South Africa announced new restrictions to curb the

second wave

Ocean Freight Updates

• Space and equipment situation continues to be

extremely tight

• Carriers unable to manage space.for APAC to IN/PK lane

• China/Malaysia base ports facing severe space crunch

Inland Transportation

• India: The National Highways Authority of India (NHAI)

is set to invite private players to build multi-modal

logistics parks (MMLPs)

• Nigeria: Urgent deliveries cannot be executed during the

curfew hours

Air Freight Updates

• Emirates introduced additional flights to LAD – effective Dec.

8th & CPT – effective Dec 11th

• SpiceXpress launches pharma service to support vaccine

distribution

• It is an only Indian carrier to operate direct, long-haul

cargo flights to Europe, Africa and CIS countries.

ISMEA Update for December 17th

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.”

12/16/2020

https://economictimes.indiatimes.com/industry/transportation/roadways/nhai-to-invite-private-companies-to-build-logistics-parks/articleshow/79727642.cms

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

• Japan: prepares to open up its borders to small

group tours ahead of the postponed Tokyo Games.

Government plans to set up a health monitoring

center for inbound tourists

• South Korea: ordered the mobilization of police,

military personnel and public medical doctors

• Malaysia: nationwide restrictions under the

recovery movement control order (RMCO), remain

in effect across most parts of Malaysia through Dec

31.

Under the Reciprocal Green Lane (RGL) scheme,

people can travel short-term from Singapore to

Malaysia with an exemption from normal quarantine

requirements for arrivals

• Vietnam: back to zero local transmission after 4

cases confirmed last week

Ocean Freight Updates

• Malaysia: Out of 3 terminals at KUL (KLIA),

shipment backlog situation at MAB Cargo terminal

will continue until 14th Nov or longer due to COVID-

19 cases detected

Air Freight Updates

• China: PVG airport authority plans to vaccinate “high risk”

persons who are willing to take the vaccine, high risk

people refer to those who have chance to touch inbound

cargo/ULDs which is not disinfected

APAC Update for December 17th

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.”

12/16/2020

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 edges past Mexico as top US trade partner [api-

esp.piano.io]

• Truck drivers on list for potential COVID-19 vaccine priority

• Transportation capacity tightens further, pricing climbs higher

Shipping stocks surge on COVID breakthrough and

presidential election.

• Pandemic continues to fuel freighter demand

• Transportation capacity near 2-year low; pricing surges

• Container rate records are shattered as US imports surge

Ocean Freight Updates

• Port of NY/NJ strives to keep cargo flowing

• New ship orders sink as fear of future economic

crisis grows

• Port of Savannah holds strong amid massive

market fluctuations

• Port of LA gives The Signal to cargo stakeholders

• Ship-to-shore operations suspended at Louisiana

ports and Port of Key West

• Port of LA records 11 straight months of declines

Inland Transportation

• UPS slashes ground delivery transit times

• Trucking industry lender's quarterly data shows significant

market improvement.

• Intermodal markets: 53-foot volume hits YTD high

• Class I railroads grapple with COVID-19 as unions seek

safety assurances.

• Trucking industry expected to remain on upswing through

2021

Air Freight Updates • Big 3 US airlines gear up to transport COVID-19 vaccines

• FMCSA expands HOS waiver to include COVID-19 vaccine

transport

• 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 December 17th

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.”

12/16/2020

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 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

• Truckers charged in record $336M US-Canada tobacco-

smuggling case

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 • Air Canada finalizes decision to convert aircraft to freighters

• Air Canada eyes converted freighters to capitalize on cargo

boom

• Air Canada to include free COVID-19, quarantine insurance on

some vacation packages

• 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 December 17th

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.”

12/16/2020

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• Borderlands: Arizona-Mexico border trade recovering slowly

• COVID-19 deaths down in Peru

• Mexico Bucks Latin America Trend as Inflation Doubles Amid

Virus

• Russian vaccine to be delivered to Venezuela

• Mexico once again No. 1 US trade partner

• Brazil's economy shrinks by most on record in 2Q, GDP falls

9.7%

• 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

• 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 December 17th

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.”

12/16/2020

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.12/16/2020

https://www.accenture.com/th-en/insights/travel/coronavirus-air-cargo-capacityhttps://www.skycargo.com/https://www.emirates.com/us/english/https://www.lufthansa.com/us/en/homepagehttps://www.brusselstimes.com/category/all-news/eu-affairs/https://www.nytimes.com/https://www.bbc.com/newshttps://timesofindia.indiatimes.com/india