Global Novel Coronavirus Update...Global Novel Coronavirus Update May 14, 2020 "This update contains information we have gathered from various public sources and share with you to

Global Novel Coronavirus UpdateMay 14, 2020"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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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.© 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.

UPS Global Freight Forwarding

2

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.

Stay informed

Promote supply chain continuity

• Register to receive important communications from UPS

• Find the latest information on Air Freight Capacity Surcharges

• Track shipment status through UPS Flex Global View®

• See how UPS Supply Chain Solutions is responding the coronavirus

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

• World Health Organization (WHO) – who.int

• UPS has an integrated global network of supply chain solutions

• Air freight

• Ocean freight

• Preferred LCL

• Small package

• Warehousing & fulfillment

May 14, 2020Proprietary 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.

https://gffsolutions.ups.com/Subscription-Management.html

https://ups-scs.com/transportation/surcharges.html#capacity

https://fgv.ups-scs.com/loginservices/logOn.nfdo?mkt_tok=eyJpIjoiTURKa05UVmlNVEkyTldNeiIsInQiOiJLTEpKU1FKMlwvTVZnRmJpNWs1d1wvT1RZUVN0Z2FVb2I2YlM4YlRvV3kwcVhsbzc1Uk9PdGtpRTRVZTB3b25LRiticDBtRmw4ejM1VENTanRUZjZnNnpnPT0ifQ%3D%3D

https://www.ups.com/us/en/about/news/scs-important-updates.page?

http://www.iata.org/

http://www.who.int/

https://ups-scs.com/transportation/air_freight.html

https://ups-scs.com/transportation/ocean_freight.html

https://www.ups.com/media/en/ejpref_lcl_ocn_frt.pdf

https://www.ups.com/service-selector?loc=en_US

https://www.ups.com/us/en/services/contract-logistics/distribution.page?


Air Freight: Global air cargo capacity has decreased by 25% compared to last year.

Total air cargo capacity growth, April 29th - May 5th, 2020 vs. same week last yearYoY growth, %

-54

-61

-6-84

-4

-86-11

-54

-30

-30

18

9

-52

-58

Source: Seabury

-11

-4

-24

-18

-6

Global capacity decline: -25%

The Transpacific and Asia Pacific – Europe air cargo capacity is almost back to 2019 levels

-20

-23

Note: Thickness of arrows is representative of capacity in metric tonnes, direct flights only.

3Proprietary 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.

May 14, 2020

https://www.accenture.com/th-en/insights/travel/coronavirus-air-cargo-capacity


For service from China to Europe, to the following destinations:

Austria, Czech, Germany, Hungary, Italy, Netherlands, Poland, Slovakia, Switzerland, United Kingdom.

4April 30, 2020

UPS SupplyChain Solutions®

UPS Dedicated

Rail Groupage

ServiceEffective through June 30, 2020 • Fixed departure date (Wednesday/week)

• Departure schedule for May, 2020 available

• Fixed time in transit – Approx. 16 days*

• Door to door service

• Pick up from 35 origins throughout China

• Simplified per-kilo pricing

• Optional Customs Brokerage

• End-to-end shipment visibility (FGV)

Latest Booking Cutoff Date:

11-May

Latest Rail Departure Date:

20-May

May 14, 2020


Terms & Conditions Price includes: Origin Handling, Waybill, ENS, Origin and/or Destination CFS handling, Delivery Order, Rail Freight and SurchargesPrice excludes: Brokerage Fees (Origin and/or Destination), Original Bill Of Lading, Courier Fees, Transport Insurance, Storage and other warehouse fees (5 calendar days free storage at UPS CFS)Price is valid for general cargo only, stackable. Up to maximum dimensions of 1 colli: 200 X 170 X 200 cm (L x W x H), maximum weight of 1 colli: 3500 kg Weights and dimensions are calculated based on a ratio of 1cbm:167kgs; subject to a minimum of 1cbm

Brokerage Fees: Origin: Customs fee USD 85.00/entry (include 3 HS codes, CNY150 per every additional HS codes, maximum 50 HS codes/lines per entry)Destination: MRN (T1) EUR 45 and/or general Customs Clearance EUR 45 incl. 3 HS Codes, each extra code EUR 5 The quotation does not include advancement fees associated to duties and taxes

5April 30, 2020

China Origins: Beijing, Changsha, Changshu, Changzhou, Dongguan, Foshan, Fuzhou, Guangzhou, Hangzhou, Hefei, Jiaxing,Kunshan, Nanjing, Nantong, Qingdao, Shanghai, Shantou, Shaoxing, Shenzhen, Suzhou, Taizhou (Zhejiang, Jiangsu), Tianjin,Wenzhou, Wuhan, Wuxi, Xiamen, Xi'an, Xuzhou, Yantai, Yiwu, Zhengzhou, Zhongshan, Zhuhai

Origin China

Europe Destination

Poland Germany CzechAustria &

Switzerland

Hungary

&

Slovakia

Netherland Italy** UK

Door to door per Kg

rate$2.00 $2.80 $2.80 $2.95 $3.10 $2.70 $2.85 $3.00

Booking

Cutoff

Date

Rail

Departure

Date

Estimated Delivery Date

7-May 13-May 3-Jun 4-Jun 5-Jun 5-Jun 5-Jun 10-Jun 10-Jun 10-Jun

11-May 20-May 10-Jun 11-Jun 12-Jun 12-Jun 12-Jun 17-Jun 17-Jun 17-Jun

18-May 27- May 17-Jun 18-Jun 19-Jun 19-Jun 19-Jun 24-Jun 24-Jun 24-Jun

UPS SupplyChain Solutions®

Door-to-door

rail freight

service from

China to EuropeEffective through June 30, 2020

UPS Dedicated Rail Groupage Service: Fast, Reliable & Cost- Effective

*Rate & transit times is for illustrative purposes only. The example rates above are based on 1000kgs 0r 6cbm. They are not guaranteed and will vary by individual customer, origin/destination pairing and shipment characteristics**Italy-Example rates, based on Milan delivery

May 14, 2020


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.

Europe - Coronavirus Updates, May 14th

Countries Current Situation Lockdown

Status

France

UK

Turkey

Russia

Ukraine

• France: From May 11th

• The first stage of relaxation of measures began nationwide, except for Mayotte

• Movements within 100km of one’s residence allowed. No need to fill in a certificate.

• Travel over 100km remains limited to essential business and family-related reasons

• Turkey:• A four-day curfew starting from 23.59 on May 15th until 23.59

on May 19th in 15 cities• Shopping centres, barber shops and beauty salons have already

been permitted to resume operations

HIGH

Switzerland

Italy

Spain

Poland

Germany

Finland

• Finland: A state of emergency in place until at least June 1st

• All land, sea and air borders remain closed at least until June

14th

• A number of groups are allowed to travel for work and other

essential reasons, these include: employment or commission-

related commuting

MEDIUM

Greece

Netherlands

Belgium

Sweden

Denmark

Bulgaria

Hungary

Iceland

• Bulgaria:

• A state of emergency ended on 13 May and will not be extended

• Outdoor areas of cafes, restaurants, fast food kiosks and bars

resumed service

• Hungary: For business purposes only, borders with Austria, Czech

Republic, Germany, Poland, the Republic of Korea and Slovakia will

reopen

• Iceland: From June 15th, foreign visitors will be allowed in Iceland

after being tested upon arrival

LOW

No information available

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.”

6May 14, 2020


Europe Update for May 14th

Air Freight Updates

Socioeconomic Updates

• Belgium: Exit phase 2 will start as planned from May 18th

• Telework remains as norm

• Schools, museums and cultural attractions, libraries will

reopen

• Romania: Lockdown will ease from May 15th

• protection masks will become mandatory in all enclosed

public spaces and public transport

• Ban on public events will remain in place

• Air Freight: UPS operations working normal. Adjusting the

routing of the freight, in order to have commercial uplift done

effectively

• Ocean Freight: UPS is actively working hard to minimize the impact & delays

• Lufthansa : Additional freighters added from DE/Europe to PVG

• United Airlines: • Additional capacity PAX flights from AMS/Europe to EWR• Additional cargo-only freighters from AMS/Europe to

ORD/IAH/SFO• Additional cargo-only freighters from BRU/Europe to

ORD/IAD• Emirates Airlines: Additional freighters added from DXB/

Europe to CMB• Turkish Airlines: Updated flight network & schedules for

various destination Turkish Cargo• Air France/KLM: Additional cargo-only freighters added from

AMS/Europe to various destination Air France/KLM• Delta Airlines:

• Continues flights in May from AMS/PAR/ Europe to ATL• Continues flights in May from AMS/Europe to DTT

• Congestion in European ports expected to worsen

• Belgium:

• Port of Antwerp - Oil spill in has significantly interrupted

shipping traffic

• The Europe and North Sea terminals are closed

• Turkey: Vessel sailings, equipment availability and carrier

operations constrained

• Increase in trucks demand but trucks availability constrained

• Border delays slightly increased by 8% above the pre-COVID

pandemic period

• Waiting times at DE→CH, BG→RO, and RO→HU borders are

high

UPS Operations**

Ocean Freight Updates

Inland Transportation


7Proprietary 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.May 14, 2020

https://www.turkishcargo.com.tr/documents/tarife_dokuman/tarife-tablo.pdf

https://www.afklcargo.com/WW/en/common/network/network.jsp

https://www.maritime-executive.com/article/2007-06-21congestion-in-european-ports-expected



ISMEA - Coronavirus Updates, May 14th

No information available


Status

India

Bangladesh

Sri Lanka

Pakistan

Saudi Arabia

UAE

Iraq

Afghanistan

Kuwait

Sul of Oman

South Africa

Nigeria

Uganda

• Saudi Arabia:

• From May 14th to 22th, economic and commercial

activities will continue as normal. People can go

out for essentials from 09.00 to 17.00, except for

Mecca and other areas under a full lockdown

• From May 23rd to 27th,a 24-hour full lockdown will

be imposed countrywide

• South Africa: Will move to level 3 lockdown

restrictions by the end of May

HIGH

South Sudan

Egypt

Bahrain

Libya

Niger

• South Sudan:

• Juba International Airport reopened on May 14th

• Domestic and international flights can resume

• Libya:

• Curfew in GNA controlled areas is extended until at

least May 17th from 18.00 to 06.00

• Niger: • The curfew from 21.00 to 05.00 has been lifted in

Niamey until further notice.• Places of worship can reopen

MEDIUM

Qatar

Ghana

• Ghana: Suspension of all public gatherings, both

private and business until May 31stLOW


8May 14, 2020


ISMEA Update for May 14th

Ocean Freight Updates

Socioeconomic Updates

• India: lockdown 4.0 to be implemented. & it will be different, details will come out before May 18th

• Kenya: Curfew until May 18th

• Passenger flights still under suspension

• Only cargo planes are allowed

• Kazakhstan: Lifting lockdown

• Approximate date of starting passenger flights to Moscow

and Batumi will be from June 1st

• Air freight :

• UPS working but some delays expected due to local

condition

• Ocean Freight: Running unconstrained

• Local transportation causing delays due to restrictions

• Turkish Airlines: Operating inbound to Nigeria, Kazakhstan, Ghana, Algeria, Kenya & Madagascar

• Qatar Airlines: Freighters available for India (BOM/AMD/ HYD/MAA/BLR/DEL), Uganda (EBB), Kuwait (KWI), Bangladesh (DAC), Kenya (NBO), Algeria (AHB) & Sri Lanka (CMB)

• Sri Lanka: TK, QR, CX Airlines operating PAX freighters • Emirates Skycargo:

• Freighters available for EBB(Uganda), DXB(UAE)• PAX freighters for RUH/DMM/JED(Saudi Arabia)

• Bangladesh looks to shift more boxes from congested Chittagong port

• South Africa: Port operations limited and equipment availability constrained

• Kenya: Operations affected by social distancing regulations • Saudi Arabia: Ports, CFSs and customs are working with

limited opening hours

UPS Operations**

Air Freight Updates

• Final delivery delays of Air / Ocean may happen due to border constraints

• Mozambique: JNB to MPM trucking options available • Bangladesh: Intercity transportation constrained

Inland transportation




https://www.joc.com/port-news/international-ports/bangladesh-looks-shift-more-boxes-congested-chittagong-port_20200423.html



APAC - Coronavirus Updates, May 14th


Status

Bhutan• Bhutan: country under full lockdown

HIGH

Australia

Japan

Singapore

Indonesia

Myanmar

Malaysia

Philippines

Vietnam

• Australia, Philippines, Malaysia, Vietnam &

Japan: State of Emergency until May 6th

• Myanmar: Stay-At-Home order

• Singapore: Country under circuit breaker from

April 7th to May 4th

• Indonesia: Only essential services working in

some parts of the country

MEDIUM

Cambodia

China

Hong Kong

South Korea

Taiwan

Thailand

Vietnam

• Open for business with social distancing and

other restrictionsLOW


10May 14, 2020


APAC Update for May 14th

11

Socioeconomic Updates UPS Operations**

• Malaysia: Government had extended CMCO (Conditional Movement Control Order) for another 4 weeks till Jun 9. Local state begins to fall in line with federal government's CMCO to reopen business 100% starting this week.

• Australia: Government relax social gatherings from 2 people to 10 people as of May 7. Requires 14 day isolation for International arrivals only.

• China: All CL operation sites in China have been resumed to normal services.

• Air Freight: Charters available for next week (limited)

• Ocean Freight: Available capacity

• Rail/Ground: Export shipments available, but limited for

some countries

• Thailand: The Civil Aviation Authority has opened more

airports for special international flights.

• China: Most routes between Hong Kong and mainland China

remain closed, leaving only HK International Airport (HKG),

the Shenzhen Bay checkpoint and the Hong Kong-Zhuhai-

Macao Bridge open

• No carrier blank sailing announcement today

Air Freight Updates Ocean Freight Updates

• China: Outbound trains to/from Europe have resumed as per

normal operations

Rail Updates


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.May 14, 2020


United States Update for May 14th

12


• Ground borders with Canada and Mexico will remain closed to

non-essential travel until May 20th

• Exports Collapse as Coronavirus affected International trade

• Coronavirus muddies U.S. economic data as business closures

push down response rates

• Air Freight:

• JFK: Recovery times continue to improve after some

delays due to staffing

• Additional charter flights being handled by carriers ground

handlers

• Ocean Freight: Fully operational

• Rail/Ground: Fully operational

• We are starting to see US gateway backlogs into SYD, JHB,

SIN, India

• Air Bridge: Operations in Dallas and Los Angeles suspended

until further notice

• Air Canada: Suspending the majority of international and

U.S. trans- border flights

• Blank sailings continue with the SSLs.

• World container index – PVG to LA = down / PVG to NY =

down / PVG to RTM = stable

• LA/LB; HOU/ MEM ports are severely constrained

• DFW/ ORD/ DTW/ CVG/ MIA ports are somewhat constrained

• Road transportation intact in the US

• New Jersey introduced some road restrictions impacting

trucking






Canada Update for May 14th

13


• Quebec has instituted checkpoints to prevent non-

essential travel into the province

• Canada will require all air travelers to wear face masks

• USMCA will now go into effect on July 1st

• ON government extended lockdown to May 12th

• Air Freight: Reduced flights

• Ocean Freight: Port restrictions

• Rail/Ground: Customs operation impacted

The Canada-US border will remain closed to non-

essential travel (i.e. recreation and tourism) until 20

May. However, essential travel and all freight

transportation will be permitted throughout.

• Ports are operational. Cargo transportation is still

allowed

• Slow in/out processing and delays in customs clearance

• Daily pickups and deliveries except where restrained by

government






LATAM Update for May 14th

14


• Countries close schools (17 cities: AR, BO, BR, CL, CR,

DO, EC, GT, HN, MX, NI, PA, PE, PR, PY, SV, VE) and

borders for foreign (12 cities: AR, BR, CL, CR, EC, GT,

HN, PA, PE, PY, UY, VE)

• Government reduced working hours for non-essential

business (12 cities: BO, CL, CR, DO, EC, GT, HN, PA, PE,

PR, PY, VE)

• Air Freight: Reduced flights

• Ocean Freight: Port Restrictions

• Rail/Ground: Customs operation impacted

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)

• 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

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

EC, GT, PA, PE, SR, VE)





Thank You


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



https://www.accenture.com/th-en/insights/travel/coronavirus-air-cargo-capacity

https://www.skycargo.com/

https://www.emirates.com/us/english/

https://www.lufthansa.com/us/en/homepage

https://www.brusselstimes.com/category/all-news/eu-affairs/

https://www.nytimes.com/

https://www.bbc.com/news

https://timesofindia.indiatimes.com/india

Documents

Global Novel Coronavirus Update...Global Novel Coronavirus Update May 14, 2020 "This update contains information we have gathered from various public sources and share with you to