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Global Market Insights April 15th , 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 Moreover, the market4/15/2021 is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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.” Global air cargo capacity declined 12% compared to the same weeks in 2019

Transpacific showed a strong increase in capacity in the last two weeks. Trade lanes affected by the Suez Canal incident have not impacted air cargo capacity in the last weeks..

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. 4/15/2021 © 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. Belly capacity remains 53% below pre-COVID-19 levels

Freighter capacity remains stable at double-digit growth rate.

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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. 4/15/2021 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 April 15th Socioeconomic Updates Air Freight Updates • EU reaches milestone of 100 million vaccinations • KLM deploys custom-made cargo seat bags • The EU’s “Covid passport” – the Digital Green Certificate – to travel • IAG Cargo has described the airfreight market as “incredibly busy” due to freely during the pandemic should be ready for use from the end of growing e-commerce and automotive sectors & also the rollout of Covid June vaccines. • Belgium announced ‘cautious’ relaxations after Easter pause • Coyne Airways is resuming direct freighter flights between • Johnson & Johnson will “proactively” delay deliveries of its Germany and Georgia after an 11 month Covid break. coronavirus vaccine to Europe following reports of rare blood clots after vaccination in the US.. Ocean Freight Updates • APAC Westbound: Tight space and equipment shortage Inland Transportation

due to the Suez Canal incident • As per latest Ti report published, the European road freight • Recommend pre-bookings to be made 3 to 4 week prior to planned market is expected to be smaller than 2019 by 1.5%. vessel departure • Recovery in road freight volumes not expected to arrive in 2021 Capacity stays heavily constrained • High congestion at Switzerland –France/Germany border & Romania – • Transatlantic Westbound: Equipment extremely tight across Europe as Bulgaria border port congestion and lower vessel capacity delay empty-container repositioning, especially at inland depots • There are 3 upcoming blank sailings. Expected more void sailings and change of Port rotations/Port omissions

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS. 4/15/2021 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. © 2020 United© 2020 Parcel United Service Parcel of service America, of America, Inc. UPS, Inc. the UPS, UPS the brandmark, UPS brandmark, and the the color color dark brown brown are tonetrademarks are trademarks of United ofParcel United Service Parcelof ServiceAmerica, of Inc. America, All rights Inc. reserved. 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.” ISMEA Update for April 15th Socioeconomic Updates Air Freight Updates • The UAE administered nine million doses of the Covid-19 vaccine • EK to introduce additional frequencies from DXB to: IST, PAX - 18x weekly, • An Israeli study revealed that the South African variant of coronavirus effective April 15th; LAD PAX, effective May 1st and extended LOS and can “break through” the Pfizer-BioNTech Covid vaccine ABV cancellation to 13 April • Oman reported a record daily Covid-19 deaths, lockdown imposed in • PIA suspended operations to EU due to safety concerns. Scheduled to and out of Muscat city from 10th to 22nd April undergo IACO safety audit for all services to EU countries • India's single-day Covid-19 spike went from 1 lakh to over • EK, EY, FZ announced suspension of PAX flights to Dhaka 2 lakh in just 10 days between April 14th -20th • Wizz Air Abu Dhabi introduced new routes for AUH to BEG Ocean Freight Updates Inland Transportation • CMA CGM, plans to rebuild Beirut port within in 3 years • SkyCargo announced road feeder service to JED, RUH period with the estimated cost of US $400mn to US $600mn. and DMM ex MED • Other global players such as Hamburg Port Consulting and Dubai’s DP • India is likely to develop dedicated midnight freight corridors for World have also been reported to bid for the project better management of freight into ports and airports, as part of • Market experiencing the Ripple effect of Suez canal incident: the National Trade Facilitation Action Plan • Space to Europe is over booked for Month of April, carriers not • It will include construction of the Maduravoyal Elevated Corridor accepting bookings for the month and indicating May first week as in Chennai possible opening of bookings,

• China: More than 161 million doses of covid-19 vaccine had been administrated across China as of last Friday • Hong Kong: Cathay Pacific Cargo announced that it has shipped 15 million Covid-19 vaccines around the • Hong Kong: As of 11 April, HK has total number of 11,581 cases world with 207 deaths

• South Korea: 700 new Covid-19 cases reported, the highest daily figure since early January. Social distances rules have been re- imposed

• Japan: Tokyo reported 537 new cases on Friday while Osaka had 883 new infections. Targeted lockdowns have been imposed

• Philippines: Effective 12 April, the National Capital Region and Ocean Freight Updates provinces of Bulacan, Laguna, Cavite and Rizal will shift from ECQ to MECQ (Modified Enhanced Community Quarantine) • Port congestion in the whole region • Singapore: US to explore ways to revive air travel amid COVID- 19, including vaccination certificates • China: Shortage of truck drivers started before CNY will continue because of the strict Covid-19 quarantine • Thailand : 985 new COVID-19 cases reported April 12, the biggest measures imposed by the Chinese authorities. Booming jump for a second day in a row as the country deals with a third wave of infections demand out of China causing container shortages

Ocean Freight Updates Inland Transportation • Port of Charleston opened first new container terminal in the US since 2009, increasing capacity by 30% • Trucking interests skeptical of zone-based congestion pricing • US ports, shippers face major fallout from Suez Canal chaos • Severe weather in the South could cause delays for truckers from • Los Angeles and Long Beach port congestion is the worst in its the Plains to the Carolinas history • Trucking companies lost more jobs than expected in February • Ports press Congress, Biden for emergency funds • Crude tankers stuck in ‘rate hell’ but floating-storage pain wanes • South Carolina Ports rides rails to robust January

Socioeconomic Updates Air Freight Updates • New COVID-19 boarding rules for airlines will be tighter than • Canada passes US in COVID cases per capita for first time expected • Canadian federal government extends $5B in aid to Air • Air Canada finalizes decision to convert aircraft to freighters Canada • Air Canada eyes converted freighters to capitalize on cargo • Canadian Prime Minister hinted that reopening of U.S.- boom Canadian border won’t be anytime soon • Air Canada is resuming many of its international • Health Canada approves use of Johnson & Johnson’s flights, heading to the U.S., the Caribbean, South COVID-19 vaccine, the fourth vaccine approved America, Europe and the Pacific

Ocean Freight Updates Inland Transportation • Port of Montreal go on partial strike refusing to work

weekends and overtime • Some Canadian trucking companies shut down amid • Port of Toronto moved over 2 million metric tonnes of financial struggles cargo for fourth consecutive year • Daily pickups and deliveries except where restrained by • Ports are operational. Cargo transportation is still allowed government • Slow in/out processing and delays in customs clearance

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

• 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