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Global Novel Coronavirus Update October 29, 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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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.”

10/28/2020 "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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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.” Number of confirmed COVID-19 cases reported in the last seven days by country, territory or area, 5th October to 11th October 2020.

*WHO Website

10/28/2020 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. 10/28/2020 © 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. 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 Book a Shipment Online • Register to receive important communications from UPS Book now at ups.com/supplychain • 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 • LATAM to North America • Asia to Mexico • North America to Asia • Europe to North America • China to Europe rail • North America to Europe • Sea-Air Asia to LATAM • ISMEA to North America • Sea-Air Asia to Europe

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. 3 9/10/2020 © 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 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.” Global Air Cargo capacity is 20% below last two weeks compared to last year. Air cargo capacity recovering; the Transatlantic (-43%) and LATAM capacity (-58%) capacity shows no recovery.

10/28/2020 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. 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 October 29th

Socioeconomic Updates Air Freight Updates • Record Covid cases and new lockdowns across Europe • Lufthansa Cargo revealed its freighter schedule for the winter • Netherlands breaks new daily coronavirus infection record season, with an average of 35 flights per week to Asia • Brussels university activates code red from Monday • Turkish Cargo has expanded its network with the addition of • Barnier on Brexit: A deal is within reach numerous direct routes to destinations in Europe, the Middle • Several European contact tracing apps can now interact East and Asia. with each other • Copenhagen Airport relies on preighter capacity to develop as “airfreight gateway to Scandinavia”

Ocean Freight Updates Inland Transportation

• Carriers boost capacity on the transatlantic to keep pace • Trucks covering same distance as before the pandemic, with demand up from -13% in August. • Industrial shipper Manitou to use wind-powered • Border crossing times almost stable for months, on transatlantic ro-ro vessels average crossings take just 5% more time than before • Port of NL, DE, FR are severely constrained the crisis. • Ports of CZ, PO, PT are constrained, delays expected • Rail: Delays in departure from China expected. • European inland hub boosting rail container trade from China

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. 10/28/2020 © 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 October 29th

Socioeconomic Updates Air Freight Updates • India: COVID-19 reinfection in India is currently under • LOT and Group Concorde transport 53.5 tonnes of cargo on investigation Dreamliner preighter • Delhi airport emerges second safest globally on COVID-19- • India limits non-scheduled freighter flights to six airports related safety protocols • Etihad Cargo: Scheduled flights from AUH to AMS/ FRA/HAN/PVG/JNB/NBO/RUH/MUC/LHR/MAN/CDG/ • Dubai: Wedding receptions can take place in hotels, halls, DUB/BCN/MXP homes, temporary venues and tents from October 22nd • New UAE coronavirus cases hit record high • AirFrance Cargo: Wide–body belly flights • Pakistan: Put a limit on marriage hall timings and scheduled for BEY/BOM/BLR/CAI/DEL/DXB/ number of guests, due to fears of a second wave DMM /MCT/KWI

Ocean Freight Updates Inland Transportation

• Botched digital customs clearance no help to congestion-hit trade in India • Oman: Deliveries impacted in Oman • ZIM to offer direct services between Israel and UAE • Morocco: Urgent deliveries can be executed during the • ONE launching new China – India – Pakistan curfew hours, but delays to be expected service

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. © 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. 10/28/2020 © 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. 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 October 29th

Socioeconomic Updates Air Freight Updates • Singapore: working towards Phase 3 of re-opening. Pilot pre-event rapid testing (results within half an • Singapore: Changi Airport Group is putting together hour) will start in mid Oct so that more events can a task force (public-private partnership) comprising safely resume; including business to business members of Pharma Changi, regulators and service events providers to make sure Changi airport (and Singapore) are well prepared to support the • Malaysia: battling its third wave of coronavirus movement of Covid-19 vaccines transported by air infections. Government is considering to limit the when they become available movement of people, especially in Selangor and Kuala Lumpur

• Australia: maintaining Stage 4 restrictions: Ocean Freight Updates

• Western Australia, Perth – Borders closed • No service impacted • BNE, Queensland – Borders opening Nov 1st • Available capacity • Victoria - Restrictions were eased in Melbourne and regional Victoria on Tuesday (Phase 1). Second-phase of opening up will follow on Nov 9th

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. 10/28/2020 ©© 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.” United States Update for October 29th

Socioeconomic Updates Air Freight Updates • E-commerce explodes into holiday shipping season • New A321 converted freighter passes first test flight in US • US, Canada, Mexico border closures extended to Nov. 21. • Lack of passenger flights holds down airfreight • Transportation capacity near 2-year low; pricing surges • United Airlines cargo planes to share space again with • Mounting evidence that container spike could last into 2021 passengers • Container rate records are shattered as US imports surge • UPS expanding at Kansas City airport as e-commerce surges • Several regions experience air cargo lull ahead of peak season • New air cargo security standards could gum up e-commerce • U.S. importers turn to Chinese sellers in the wake of COVID exports • Spike in COVID cases could renew pressure on air freight • American Airlines doubles down on cargo-only flights capacity

Ocean Freight Updates Inland Transportation • Container slots sell out, risking holiday ‘shipageddon’ • Trucking Markets: Rates and rejections elevated before • New ship orders sink as fear of future economic peak crisis grows • Trucking jobs rise by 10,000 in August • Port of Savannah holds strong amid massive • Trucking industry expected to remain on upswing through market fluctuations 2021 • Ship-to-shore operations suspended at Louisiana ports and Port of Key West

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. 10/28/2020 ©© 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.” Canada Update for October 29th

Socioeconomic Updates Air Freight Updates • Canada needs logistics help with millions of COVID-19 vaccine • Air Canada to include free COVID-19, quarantine doses insurance on some vacation packages • Feds say 100,000 rapid COVID-19 tests have arrived, being • Air Canada is resuming many of its international distributed to provinces flights, heading to the U.S., the Caribbean, South • US, Canada, Mexico border closures extended to Nov. 21. America, Europe and the Pacific. • Revenue decline dampens Canadian Pacific's Q3 profit. • The airline will be offering flights to 97 destinations – • Coronavirus: Quebec and Ontario premiers meet to discuss down from its usual 220 spots. economic recovery

Ocean Freight Updates Inland Transportation

• Port of Oakland sets imports record, sees exports climb • Truckers charged in record $336M US-Canada tobacco- • Ports are operational. Cargo transportation is still allowed smuggling case • Slow in/out processing and delays in customs clearance • Daily pickups and deliveries except where restrained by government

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. 10/28/2020 ©© 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.” LATAM Update for October 29th

Socioeconomic Updates Air Freight Updates • Mexico Signs Agreements to Buy Potential Covid-19 Vaccines • Dubai airline launches new freighter service to • $1 billion Mexico-Canada rail link proposed Mexico • US, Canada, Mexico border closures extended to Nov. 21. • LATAM Common Carriage flights were reduced or • COVID-19 deaths down in Peru forbidden to/from US, Europe & Asia (19 countries: • Mexico Bucks Latin America Trend as Inflation Doubles Amid AR, BO, BR, CL, CO, CR, DO, EC, GT, HN, NI, PA, Virus PE, PR, PY, SR, SV, UY, VE) • Russian vaccine to be delivered to Venezuela • Mexico once again No. 1 US trade partner • Colombia expands reopening as coronavirus cases stabilize

Ocean Freight Updates Inland Transportation

• Ocean Port Restrictions (3 countries: DO, HN, PR) • Trucking markets: Lull persists as operators adjust • DO: Operations had been restricted up to 6pm • Mexican rail blockade continues to affect freight flows • HN: Limited service to Puerto Cortez Port • US-Mexico truck crossings decline 22% at Port Laredo • PR: No passenger vessel allowed • 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

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS. 10/28/2020 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.