Global Novel Coronavirus Update

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Global Novel Coronavirus Update July 16, 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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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.” "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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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 in the last seven days by country, territory or area, 8 July to 14 July*

*WHO Website

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. 7/16/2020 2 7/16/2020June 18, 2020 © 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. Change in the Chain Webinar Series Webinar #1: The New Normal

Join us as we discuss how COVID-19 has affected the global supply chain and RESERVE YOUR what the new normal might look like as we move forward. SPOT FOR THE Hosted by the UPS® Global Freight Forwarding leadership team, this webinar will UPS WEBINAR feature:

Marco Bloemen Managing Director at Seabury Consulting

Romaine Seguin President UPS Global Freight Forwarding

Mike Harrell DATE President Global Freight Forwarding, Europe Thursday, July 23, 2020 TIME Jeff McCorstin 9:00a EST President UPS Global Customs Brokerage & North America Supply Chain Solutions

© 2020 United Parcel Service ofProprietary America, and Inc. Confidential: UPS, theThis presentationUPS brand may mark not be and used the or disclosed color brownto other thanare employeestrademarks or customers, of United unless Parcel expres Sersly authorizedvice of America,by UPS. Inc. All rights reserved. 7/16/2020 © 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

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 • 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

Promote supply chain continuity • 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 authorized by UPS. 7/16/2020 5 © 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 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 - Coronavirus Updates, July 16th

Lockdown Countries Current Situation Status • Russia: • Situation in Moscow continues to improve Russia • People in the city will no longer need to wear a mask while MEDIUM Ukraine outside • Masks and gloves will remain mandatory when on public transport, shopping or in a medical centre.

Romania UK • Iceland: • The citizens and residents of the country on arrival in Iceland Spain must undergo a second PCR test France • People tested positive should self-isolate themselves Germany • Switzerland: Italy • Increase in cases in July LOW Austria • The country is now classified as "increasing activity" Bulgaria • Spain: Greece • Over 2,000 cases were reported over the weekend of 11 and 12 July, the largest two-day increase since May Netherlands • The cities of Zaragoza and Huesca will return to phase 2 of Belgium lockdown Sweden

No information available

• Belgium ‘ready’ to take stricter measures if infections keep • Air Freight: UPS operations working normal. Adjusting the rising routing of the freight, in order to have commercial uplift done • Sweden no longer a ‘red travel zone’ for Belgians effectively • EU calls for increased flu vaccination ahead of second • Ocean Freight: UPS operations working normal. Ports fully coronavirus wave functional. Currently no backlogs

Air Freight Updates Ocean Freight Updates

• Lufthansa Airlines: • Scheduled full freighter service from FRA to BOM-HYD, BKK • Port of Belgium, France, Germany, Netherland & Finland • Delta Airlines: Scheduled freighters from are severely constrained • FRA/CDG/LHR/AMS to ATL • Port of UK, Ireland, Denmark, Sweden, Norway, Turkey, • BCN/DUB/FCO/MAD to ATL Italy & Spain are working without any constraints • AMS/CDG to BOS, DTW • LHR to DTW • AMS/CDG/DUB/FCO/LIS/MXP/TLV to JFK Inland Transportation • BCN/LHR/MAD to JFK • AMS to MSP/SEA • FRA to ORD/BKK • Cathy Pacific Airlines : Cargo PAX flight from AMS/FRA/LHR • The situation at the borders remains stable, border waiting times to HKG on some borders — e.g. FR→CH,DE→CH, RO→CH and RO→HU — • LATAM Airlines: Continue its service from FRA/LHR/MAD/LIS are long to GRU-SCL

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. 7 7/16/2020June 18, 2020 ©© 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. 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 - Coronavirus Updates, July 16th Lockdown Countries Current Situation Status • Afghanistan: • Overall new cases reported daily have been declining • Lockdown in place, enforcement has been lenient. • Restaurants and shops are open in most parts. India • Liberia: Sri Lanka • Males have been infected more than females. Pakistan • Montserrado County has reported the highest Iraq number of cases. HIGH Afghanistan • South Africa : Kuwait • Nationwide lock down continues with regulations Angola changing in accordance with case activity • The national State of Emergency will be extended until at least 15 August. • Wearing masks is now mandatory in public and a nighttime curfew (from 9pm to 4am) has been reinstated Saudi Arabia Bangladesh UAE • Bangladesh: Guinea • COVID-19 negative certificates have been made MEDIUM Congo mandatory for all its citizens travelling abroad Egypt Uganda

Ghana • Ghana: Restrictions on land and maritime borders. LOW Botswana No information available

• India: • UK hails Indian doctors, nurses in NHS on the frontline of • Air freight : Covid-19 treatment • UPS working but some delays expected due to local • India's biggest state goes in lockdown again condition • Algeria: Curfew & lockdown extended until the 12th August • Ocean Freight: Running unconstrained • Kenya: Curfew has been extended for another 30days till 5th • Local transportation causing delays due to restrictions August

Air Freight Updates Ocean Freight Updates

• Port of Rwanda, Congo, Tanzania, South Africa, Pakistan, UAE, Egypt & Oman are operational but service • Cathy Pacific: constrained • Intend to operate flights to Mumbai, New Delhi in July • Ports of India, Kuwait, Bahrain, Saudi Arabia, Qatar, • Emirates: Zambia, Kenya are working without any constraints • New scheduled destinations from DXB to ATH, FCO, GLA, LCA. MUC • Additional frequency from DXB to AMS, BRU, CDG, LHR, MAD, TUN, SKT, GRU-SCL Inland transportation

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

Lockdown Countries Current Situation Status • Australia: 10 postal codes are in lock down Australia again Philippines • Singapore & Philippines: Stay-At-Home Singapore MEDIUM order Indonesia • Indonesia: Only essential services working in Myanmar some parts of the country

Cambodia China Hong Kong Japan • Open for business with social distancing and Malaysia LOW other restrictions Myanmar South Korea Taiwan Thailand Vietnam

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. 10 7/16/2020June 18, 2020 ©© 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. 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.” APAC Update for July 16th Socioeconomic Updates UPS Operations** Australia: Government announcement as of 10 July • Victoria (Melbourne) are again in lockdown due to significant increase positive results local contamination (6 weeks) • Initially only 10 postal codes to be locked down however within the week complete lockdown of the state is announced • Air Freight: Charters available with 500+ infections • Ocean Freight: Available capacity • The borders of South Australia and NSW are closed to any • Rail/Ground: Export shipments available, but limited for person/s from Victoria. some countries • Melbourne airport is closed to PAX flights • Cargo and PAX aircraft as cargo continue to operate into all Australian airports including Melbourne.

Air Freight Updates Ocean Freight Updates

• Australia: delay in cargo flights • China: Air Cargo operates regular weekly flights to/from China • TPEB trade: 7 blank sailings announced for July • Japan: some routes remain reduced • Asia-Europe trade: 6 blank sailings announced for July • Malaysia: limited schedule • Philippines: reduced cargo flights

Socioeconomic Updates UPS Operations** • US reaches 3 million coronavirus cases • Spike in COVID cases could renew pressure on air freight capacity • Air Freight: Fully operational • US, Canada and Mexico extend border restrictions for 30 • Ocean Freight: Fully operational more days • Rail/Ground: Fully operational • US residents banned from EU travel amidst rising COVID numbers

Air Freight Updates Ocean Freight Updates

• New cargo inspection program to cut wait times at Texas • Delta temporarily shuts down cargo facility at O’Hare airport border port. • E-commerce drives multipronged expansion at UPS Airlines • Port of New Orleans railroad upgrades locomotives • COVID ushers in direct cargo flights from Vietnam • World container index – PVG to LA = down / PVG to NY = down / PVG to RTM = stable

Inland transportation

• US-Mexico truck crossings decline 22% at Port Laredo

• Canada Extends Coronavirus Travel Ban On Most Foreign Travelers • Air Freight: Reduced flights • Canada extends US and Mexico border restrictions for • Ocean Freight: Port restrictions 30 more days • Rail/Ground: Customs operation impacted • Transportation job losses slow as Canada starts to recover

Ocean Freight Updates

Air Freight Updates • Ports are operational. Cargo transportation is still allowed • Slow in/out processing and delays in customs clearance

Air Canada is resuming many of its international flights, heading to the U.S., the Caribbean, South America, Inland transportation Europe and the Pacific.

The airline will be offering flights to 97 destinations – down from its usual 220 spots. • Daily pickups and deliveries except where restrained by government

• Mexico, US and Canada extend border restrictions for 30 more days • Air Freight: Reduced flights • Parts of Latin America reopen as crisis deepens • Ocean Freight: Port Restrictions • Brazil overtakes Spain and Italy as virus cases grow • Rail/Ground: Customs operation impacted • US suspends travel from Brazil for foreigners

Air Freight Updates Ocean Freight Updates

• 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

LATAM Common Carriage flights were reduced or forbidden to/from US, Europe & Asia (19 countries: AR, Inland transportation BO, BR, CL, CO, CR, DO, EC, GT, HN, NI, PA, PE, PR, PY, SR, SV, UY, VE)

• US-Mexico truck crossings decline 22% at Port Laredo • Customs operation impacted (9 Countries: AR, CR, DO, EC, 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