Global Novel Coronavirus UpdateSeptember 3, 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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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.© 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.

Navigating Regulations

Change in the Chain Webinar Series

Hosted by the UPS® Global Freight Forwarding leadership team, this three-part

webinar series is designed to provide business leaders and logistics professionals

with information and insight about what we see happening as the changing supply

chain emerges.

Our second webinar, Navigating Regulations, will feature discussions about the

current business climate and what this may look like in a post-CoVID-19

environment. Featured panelists include:

RESERVE YOUR

SPOT FOR THE

UPS WEBINAR

DATE

September 17, 2020

TIME

11:00a EST

REGISTER NOW

© 2020 United Parcel Service of America, Inc. UPS, the UPS brand mark and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Laura Lane

UPS Chief Corporate Affairs and Communications Officer

Michael White

President, Cargo Network Services

Peter Harris

Director, UPS International Sustainability

John Sega

Director, Global Supply Chain at Northrop Grumman

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 in the last seven days by country, territory or area, 24 August to 30 August 2020.

39/2/2020

"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.”

*WHO Website

9/02/2020

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

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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 Surcharge

• 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

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.9/02/2020

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.

Global Air Cargo capacity is 25% below last year. Air cargo capacity slightly improved across almost all trade lanes; despite this overall improvement, the Transatlantic still shows no signs of recovery

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"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.”

9/02/2020

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.

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, September 3rd

Countries Current Situation Lockdown

Status

Denmark

Ukraine

Netherlands

Belgium

Greece

Sweden

• Sweden:• A decrease in newly reported cases • Testing efforts increased compared to the previous week• Cases in the Kalmar and Skane regions saw significant increase• Gotland and Norrbotten saw significant decrease

MEDIUM

Russia

Romania

UK

Spain

France

Germany

Italy

Austria

Bulgaria

• Spain: • The number of new cases have started to rise• The worst affected region is Madrid, followed by Cataluna

• Russia: • The country has reached over 1 million confirmed cases• It is the fourth most affected country, behind the United States,

Brazil and India• Phase 3 clinical trials of the Sputnik-V vaccine will begin in

Moscow this week, with the aim of vaccination 40,000 people• Germany:

• New cases continue to be reported daily. • The Robert Koch Institute stated that nearly half of all cases at

this time are imported from travelers• Austria:

• Since mid-August there has been an increase in daily case counts

• Landeck district, in the southwest, is the most heavily affected district, though Vienna city has the highest absolute case count

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.”

69/02/2020

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.

Europe Update for September 3rd

Air Freight Updates

Socioeconomic Updates

• Scotland announces plans for new independence referendum• Germany to try to harmonise travel restrictions across EU• Greater Manchester lockdown easing U-turn after cases rise• Rolls-Royce launches £250,000 car as demand rebounds

• Air Freight: UPS operations working normal. Adjusting the

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

effectively

• Ocean Freight: UPS operations working normal. Ports fully

functional. Currently no backlogs

• ICAO and UPU urge governments to support air cargo

• Qatar Airways: Scheduled flights• AMS to ATL, DFW, ORD• FRA to ATL, DFW• MIL to ORD

• American Airlines:• AMS to DFW, PHL• FRA to DFW• LON to LAX, NYC, ORD

• Delta Airlines:• BCN to ATL, LAX, ORD• MIL, FRA to ORD

• Mega-ship cargo exchanges prevent slide in Europe call size

• Cargo volumes are returning in some regions.

• Generalized lockdowns now limited, the return of vessels and

the lower numbers of blank sailings continue, but at a slow pace

• Long waiting at Switzerland, France,Germany, Romania, Croatia & Hungary boarder

• Hungary- Border restriction in place• UPS working without major delays

• Rail: China – Europe rail – delay due to congestion

UPS Operations**

Ocean Freight Updates

Inland Transportation

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.”

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.9/02/2020

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.

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.

ISMEA - Coronavirus Updates, September 3rd

No information available

Countries Current Situation Lockdown

Status

Botswana

Sri Lanka

Pakistan

Iraq

Afghanistan

Kuwait

Angola

• Nigeria:

• The number of new cases have started to rise• The majority of new cases are in Plateau (116),

followed by FCT (33)• The most affected region is Lagos with over 18,157

cases• Bhutan:

• Cases increasing since late August and the country has moved to the ‘increasing activity category

• The nationwide lockdown is being gradually eased from September 1st , except in southern border towns which are deemed high-risk areas

• People are encouraged to wear face masks• Nepal:

• Daily new cases has an upward trend • Bagmati is the most affected province currently

HIGH

Saudi Arabia

Bangladesh

UAE

Guinea

Congo

Egypt

• Qatar:

• Phase 4 implemented to lift restrictions from September 1st

• Regulations regarding masks and social distancing remain in place

• All gatherings are allowed, mosques will continue to open and Friday prayers will be allowed

• Inbound flights may begin to expand, and public transportation is expected to resume with restricted service

• All employees are expected to return to the workplace now, with strict health precautions

MEDIUM

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.”

89/02/2020

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.

ISMEA Update for September 3rd

Ocean Freight Updates

Socioeconomic Updates

• Jordan: Curfew ongoing in Jordan from 10:00pm to 6:00am daily, end date not specified

• India: • Lockdown in Chennai and certain districts of Tamil Nadu

further extended till September 30th

• The lockdown is extended with minimum restrictions

• Air freight :

• UPS working but some delays expected due to local

condition

• Ocean Freight: Running unconstrained

• Local transportation causing delays due to restrictions

• SpiceJet conducts first A340 ‘freighter’ flight• Nigeria: International flights will resume on 29 August,

starting with airports in Lagos and Abuja. International travellers are expected to take the COVID-19 tests prior to travelling.

• Kazakhstan: • No flights to/fro Russia.• Flight with DXB resumed

• India: Temporary Suspended Destinations: ATQ, CCJ, GOI, KTM, LYP, MUX, NAG, SKT

• Constrained Destinations: CCU, ISB

• COVID-19 disruptions hurt Indian port efficiency push• Ports of India, Kuwait, Bahrain, Saudi Arabia, Qatar,

Zambia, Kenya are working without any constraints

UPS Operations**

Air Freight Updates

• Jordon: Urgent deliveries possible during curfew hours• India: Negligible impact of lockdown on UPS service

Inland transportation

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.”

9Proprietary 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.9/02/2020

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.

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.

APAC - Coronavirus Updates, September 3rd

Countries Current Situation Lockdown

Status

Philippines

Indonesia

Thailand

• Philippines & Thailand: Stay-At-Home order

• Indonesia: Only essential services working in

some parts of the country

MEDIUM

Australia

Cambodia

China

Hong Kong

Japan

Malaysia

Myanmar

Singapore

South Korea

Taiwan

Vietnam

• Open for business with social distancing and

other restrictionsLOW

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.”

109/02/2020

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.

APAC Update for August September 3rd

11

Socioeconomic UpdatesUPS Operations**

• Philippines: Starting 19 Aug, Metro Manila and provinces of Bulacan, Cavite, Laguna and Rizal are set to return to a more relaxed General Community Quarantine (GCQ) until the end of the month. The rest of the Philippines is placed under Modified General Community Quarantine (MGCQ), the lowest level of community quarantine

• Thailand: restaurants and department stores resumed business with social distancing. Government is promoting domestic travels. Emergency decree is expected to extend till end of Sep and considering to open Phuket in Oct with 14 days quarantine

• South Korea: Government considering to level up social distancing to phase 3 which will restrict all group activities except for essential businesses & social related activities

• New Zealand: Government announced an extension to existing level 3 lock down until 30 Aug

• Myanmar: COVID-19 second wave started to affect some regions. The ministry of Health Department found that the new virus G614 has had a quick transmission within three days and has announced a lockdown in this stage to try to control it

• Air Freight: Charters available

• Ocean Freight: Available capacity

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

some countries

• China: China and the US will each allow air carriers to double

current flights to eight round-trips per week

• Myanmar: although domestic flights and local transportation

has stopped operating, cargo flights are still allowed to

operate for now

• Capacity changes in the TPEB & AS-EU blank sailing summary

Air Freight Updates

Ocean Freight Updates

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 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.9/02/2020

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.

United States Update for September 3rd

12

Socioeconomic Updates UPS Operations**

• Several regions experience air cargo lull ahead of peak season

• U.S. importers turn to Chinese sellers in the wake of COVID

• Air cargo market braces for big rate hikes

• Spike in COVID cases could renew pressure on air freight

capacity

• Air Freight: Fully operational

• Ocean Freight: Fully operational

• Rail/Ground: Fully operational

• UPS expanding at Kansas City airport as e-commerce surges

• New air cargo security standards could gum up e-commerce

exports

• American Airlines doubles down on cargo-only flights

• ORD and LAX experiencing Ground Handling delays of 1-3

days.

• Ship-to-shore operations suspended at Louisiana ports and

Port of Key West

• Port of LA records 11 straight months of declines

• International trade at Texas ports falls sharply.

• US Coast Guard to consider regulations on autonomous

vessels

• Trucking industry expected to remain on upswing

through 2021

• Colorado chain law in effect as September begins

• Storm cleanup to cause Louisiana rail shippers some

delaysn law in effect as September begins

Air Freight Updates Ocean Freight Updates

Inland transportation

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 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.9/02/2020

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.

Canada Update for September 3rd

13

Socioeconomic Updates UPS Operations**

• Canada secures two new deals for possible COVID-19

vaccines

• Airlines face uphill climb to replace quarantines with

COVID-19 testing

• No specified date for reopening of Canada-US border

• Air Canada beat US airlines removing seats for cargo

• Air Freight: Reduced flights

• Ocean Freight: Port restrictions

• Rail/Ground: Customs operation impacted

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.

The airline will be offering flights to 97 destinations –

down from its usual 220 spots.

• 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

Air Freight Updates

Ocean Freight Updates

Inland transportation

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 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.9/02/2020

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.

LATAM Update for September 3rd

14

Socioeconomic Updates UPS Operations**

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

falls 9.7%

• Colombia expands reopening as coronavirus cases

stabilize

• More factories, manufacturing jobs headed for Mexico

• Mexico’s president wants to revoke operating concession

for Port of Veracruz

• 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

• 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 Ocean Freight Updates

Inland transportation

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 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.9/02/2020

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

16Proprietary 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.9/02/2020