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Global Novel Coronavirus Update February 18, 2021

"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 Moreover, the market2/17/2021 is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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.” Join Supply Chain Virtual Connect hosted by UPS Supply Chain Solutions

Wednesday, March 10, 2021, 1PM-5PM (EST)

Welcome to our first UPS SCS virtual conference covering the latest trends and strategy in today's global supply chains.

We have a great line-up of supply chain topics that you don't want to miss out on, including updates on COVID Vaccine Logistics, the Future of Forwarding, Hot Topics in Trade and more.

The first 1,000 people to sign up and submit their mailing address before February 20, 2021 will be shipped free UPS Swag!

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. 2/17/2021 © 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. "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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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.” Number of confirmed COVID-19 cases reported as of February, 17th The virus continues to affect every region of the world, but some countries are experiencing high rates of infection.

*The New York Times

Most trade lanes showing double digit decline compared to the last year. Transatlantic at -29% & 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. 2/17/2021 © 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

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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. Book a Shipment Online Stay Informed Book now at ups.com/supplychain • 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 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

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. 2/17/2021 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.” COVID-19 Vaccine Distribution

Market Updates* • The United Nations (UN) children’s fund announced today that as part Coronavirus Vaccinations Around the World of its vaccine distribution efforts it has signed agreements with AirBridgeCargo, Air France KLM Martinair (AFKLMP) Cargo, Astral Aviation, Brussels Airlines, Cargolux, Cathay Pacific, Emirates SkyCargo, Etihad Cargo, Ethiopian Airlines Cargo, IAG Cargo, Korean Air, Lufthansa Cargo, Qatar Airways, Saudia, Singapore Airlines and United. • Flights from Brussels Airport, carrying Pfizer’s Comirnaty Covid-19 vaccine, have been flown to more than 40 global destinations since November last year. • Mexico gets AstraZeneca COVID vaccine shipment from India

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 *The New York Times

Source: CNBC; today.com 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. 2/17/2021 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.” Brexit Updates

Market Updates* UPS Updates

• Post-Brexit Northern Ireland volumes shipping via Scotland instead of Dublin • UPS SCS is working without constraints • As per Port Boulogne Calais chairman Jean-Marc Puissesseau the phasing-in of • Comprehensive guidelines for importers and exporters available on additional UK border checks will be “smooth” ups.com • Now only 12% of trucks coming from the UK are being asked to park and go • EU/UK Trade & Cooperation Agreement (TCA) through additional checks, with another 3% of freight volumes coming via • UK Brexit Guidence ferry being subject to customs controls compared to 45% in January .”

Source: *Seabury ; CNBC; today.com 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. 2/17/2021 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.” Europe Update for February 18th

Socioeconomic Updates Air Freight Updates • Eurozone GDP fell by a historic 6.8% in 2020 • The increase in demand due to Chinese New Year. February volumes are up by • EU orders additional 200 million Pfizer / BioNTech vaccines 40% compared to last year • Johnson & Johnson coronavirus vaccine submitted for EU approval • Shipping line CMA CGM to launch A330F air cargo operation • WHO warns that infections down in Europe but it is still vulnerable • AirBridgeCargo diverts flights as Frankfurt handling comes under pressure • Ten Schengen countries (Germany, Spain, the Czech Republic, • The High Court has overturned a UK government decision to allow the Denmark, Hungary, Austria, Portugal, Finland, Belgium and development of Manston Airport into a cargo hub Norway) introduced border controls for health reasons • Many routes in and out of Heathrow becoming non-viable as the UK imposes severe quarantine restrictions on arrivals

Ocean Freight Updates Inland Transportation • Congestion between Germany and a number of its eastern neighbors • Limitation of export delivery acceptance at Hamburg observed Terminals • Tougher border controls with both the Czech Republic and Austria in place; • Strong overall cargo volume, industrial action, inclement weather demands for test result from truck drivers crossing border together with ongoing congestions and delays in most European ports • Leading to long queues at the border but also disruption to freight transport leading to disruptions of the vessel network, all Hamburg terminals are across Eastern Europe now experiencing maximum yard utilization. • No discussion of closing the border with Poland or Denmark but there is some • General recommendation to make pre-bookings 4-6 weeks prior to talk of extending controls at the French border. vessel sailing date & explore possibilities to divert to LCL Consol Box / PLCL / Regular LCL

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. 2/17/2021 © 2018© 2020 United United Parcel Parcel Service service of ofAmerica, America, Inc. Inc. UPS, UPS, the the UPS UPS brandmark, brandmark, and the the color color brown brown are aretrademarks trademarks of United of United Parcel Parcel Service SerofvicAmerica,e of America, Inc. All Inc. rights All rights reserved. reserved. 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.” ISMEA Update for February 18th Socioeconomic Updates Air Freight Updates • India: Over 87 lakh Covid-19 vaccine doses administered in • Air New Zealand launches Guangzhou PAX-cargo flights India so far • Dubai International reported a 70% fall in traffic over the past year • EK suspends flights to HRE from 13th Feb to 18th Feb, flights to be • Follow Covid-19 norms or face fresh lockdown, warns operated DXB-LUN instead of DXB-HRE-LUN Maharashtra CM • Kenya Airways increasing its cargo capacity by removing the seats from • Pakistan begins registration of elderly for Covid-19 two of its Boeing 787 Dreamliner aircrafts vaccination • QA Airways increasing the flights frequency to the USA • Melbourne and Auckland snap lockdowns to end • Saudia Airlines announced its suspended PAX flights will be operating as Cargo only • Sri Lanka is now open to travelers

Ocean Freight Updates Inland Transportation • Space & equipment’s continue to be extremely tight for • Daimler Trucks unveils BharatBenz reefer truck to all major ISMEA location (IN/PK in specific). move Covid vaccines in India • Carriers have started allocating space based on target vessels • CMA CGM launches train service on Western Dedicated Freight based on cargo readiness for March. Corridor • Maersk launched a cross-country rail service in India

Socioeconomic Updates Air Freight Updates • Australia: International flights to Melbourne stopped until Feb 17 • Australia: state of Victoria entered a five-day lockdown on Feb 13 • Korea: suspension of operations for direct flights departing the UK scheduled for until the 11th will increase • Korea: the local health authority eased the social until the 25th of February distancing rule from Level 2.5 to Level 2.0 for the greater Seoul metropolitan area and Level 1.5 for • New Zealand: Pick up and deliveries of freight in other areas, for two weeks starting Feb 15 Auckland is only to essential industries, delays for imports expected • New Zealand: Auckland is at Alert Level 3. The rest of New Zealand is at Alert Level 2 Ocean Freight Updates • Singapore: On Feb 9, Ministry of Health announced that they will tighten its border measures for people with travel history to Vietnam. Visitors • Port congestion in the whole region from New South Wales are now allowed to enter Singapore • China: lock down and suspension of local transportation led to some delays • Philippines: Government will ease restrictions starting from Feb 15, allowing reopening of leisure • New Zealand: Pick up and deliveries of freight in Auckland establishments is only to essential industries, so expect delays for imports

Socioeconomic Updates Air Freight Updates • Biden “Made in America” executive order advocates for 100- • Airlines absorb $391 billion revenue shortfall in 2020 year-old U.S. maritime law • Lack of passenger flights holds down airfreight • Biden signs executive order to strengthen COVID supply • United Airlines cargo planes to share space again with chains passengers • Importers face massive hike in ocean contract costs • UPS expanding at Kansas City airport as e- • Maritime sector nervous about chances for COVID-19 relief commerce surges New world record set for shipping rates: $350,000 per day • New air cargo security standards could gum up e- • As the lagging U.S. vaccine rollout accelerates, more commerce exports pharmacies will begin distributing doses to high-risk groups.

Ocean Freight Updates Inland Transportation • Ports press Congress, Biden for emergency funds [api-esp.piano.io] • Crude tankers stuck in ‘rate hell’ but floating-storage pain • Port of Long Beach has best January on record wanes South Carolina Ports rides rails to robust January • Truckers chain up as snowstorms hit several Western states • Port of LA will pay container terminals for efficiency this week gains • Trucking markets: Strong trucking backdrop should resume • COVID outbreak could cripple California container after slow holiday week ports • Trucking industry lender's quarterly data shows significant market improvement.

Socioeconomic Updates Air Freight Updates • Canada's vaccine rollout is slower than other countries • New COVID-19 boarding rules for airlines will be tighter than • Quebec imposes curfew as part of 4-week lockdown expected • Canada clears 4 firms to bid on COVID-19 vaccine • Air Canada finalizes decision to convert aircraft to freighters distribution contract • Air Canada eyes converted freighters to capitalize on cargo • Transport Canada revises rules on worker fatigue in the rail boom industry • Air Canada is resuming many of its international • Canada COVID-19 vaccine distribution plans attract flights, heading to the U.S., the Caribbean, South big firms America, Europe and the Pacific • Pfizer plans ‘just-in-time’ COVID-19 vaccine distribution in Canada

Ocean Freight Updates Inland Transportation

• Ports are operational. Cargo transportation is still allowed • Daily pickups and deliveries except where restrained by • Slow in/out processing and delays in customs government clearance

Socioeconomic Updates Air Freight Updates • Pfizer applies for full COVID-19 vaccine approval in Brazil • Dubai airline launches new freighter service to Mexico • Oil prices shake off COVID blues as Brent hits $60 • LATAM Common Carriage flights were reduced or forbidden • Brazil scrambles to secure COVID vaccine from India to/from US, Europe & Asia (19 countries: AR, BO, BR, CL, CO, • Mexico, Chile and Costa Rica become the first countries in CR, DO, EC, GT, HN, NI, PA, PE, PR, PY, SR, SV, UY, VE) 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 Inland Transportation

• Despite some successes, Mexico still struggles with • Italian firm building $150M shipyard in Mexico fuel theft • Ocean Port Restrictions (3 countries: DO, HN, PR) • Mexican rail blockade continues to affect freight flows • DO: Operations had been restricted up to 6pm • US-Mexico truck crossings decline 22% at Port Laredo • HN: Limited service to Puerto Cortez Port • Customs operation impacted (9 Countries: AR, CR, DO, EC, • PR: No passenger vessel allowed GT, PA, PE, SR, VE)

• 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. 2/17/2021 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. ©© 2017 2020 United United Parcel Parcel Service service of America, Inc. UPS, the UPS UPS brandmark,brandmark, the the color color brown brown are are trademarks trademarks of ofUnited United Parcel Parcel Service Serviceof America,of America, Inc. Inc. All rightsAll rights reserved. reserved.