Global Novel Coronavirus Update January 14, 2021 · 2021. 1. 14. · Global Novel Coronavirus Update "This update contains information we have gathered from various public sources

Global Novel Coronavirus Update

"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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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.”

January 14, 2021

1/13/2021

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 as of January, 13th

The virus continues to affect every region of the world, but some countries are experiencing high rates of infection.

1/13/2021

"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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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.”

*The New York Times

1/13/2021

https://www.nytimes.com/interactive/2020/world/coronavirus-maps.html

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.

Year-to-date international air cargo capacity declined -20%After international capacity remained stable in Q1, Q2-Q4 capacity fell 26% YoY;

1/13/2021

The Transpacific trade lane shows strong air cargo capacity increases in the last two weeks and is now 1-4% higher compared

to last year

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.

UPS Global Freight Forwarding

Stay Informed

• 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

1/13/2021

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.

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

Book a Shipment Online

Book now at ups.com/supplychain

https://gffsolutions.ups.com/Subscription-Management.htmlhttps://www.ups.com/us/en/supplychain/other/surcharges.page?https://fgv.ups-scs.com/loginservices/logOn.nfdo?mkt_tok=eyJpIjoiTURKa05UVmlNVEkyTldNeiIsInQiOiJLTEpKU1FKMlwvTVZnRmJpNWs1d1wvT1RZUVN0Z2FVb2I2YlM4YlRvV3kwcVhsbzc1Uk9PdGtpRTRVZTB3b25LRiticDBtRmw4ejM1VENTanRUZjZnNnpnPT0ifQ%3D%3Dhttp://www.iata.org/http://www.who.int/https://gffsolutions.ups.com/rs/646-DDV-705/images/PLCL Card Asia to NA - Oct 20.pdfhttps://gffsolutions.ups.com/rs/646-DDV-705/images/PLCL Card Asia to Mexico - Oct 20.pdfhttps://gffsolutions.ups.com/rs/646-DDV-705/images/PLCL Card Europe to NA - Oct 20.pdfhttps://gffsolutions.ups.com/rs/646-DDV-705/images/PLCL Card NA to Europe_ISMEA - Oct 20.pdfhttps://gffsolutions.ups.com/rs/646-DDV-705/images/PLCL Card ISMEA to NA - Oct 20.pdfhttps://scsapps.ups.com/gff/indexhttps://scsapps.ups.com/gff/indexhttps://scsapps.ups.com/gff/index

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. 1/13/2021

COVID-19 Vaccine Distribution

Source: *Seabury ; CNBC; today.com

Market Updates* • China's Covid-19 vaccine was just 50.38% effective in late-stage trials in Brazil

• Turkey approves China-based Sinovac vaccine's emergency use

• SpiceJet has signed a Memorandum of Understanding (MoU) with Belgium’s Brussels

Airport for the transportation of Covid-19 vaccines, while it has also carried India’s first

shipments.

• The European Commission concluded exploratory talks with the pharmaceutical

company Valneva with a view to purchasing its potential vaccine against COVID-19.

• AstraZeneca applies for EU approval of its vaccine

• Covid-19 vaccination programmes around the world is expected to put extra pressure on

an already tight market due to the loss of much of the world’s bellyhold capacity.

UPS Updates

• UPS Making First Deliveries of the Vaccine to the European Union.

• UPS Driver Delivers Hope to Canadians

• How UPS is shipping the Pfizer Covid-19 vaccine around the U.S.

https://pressroom.ups.com/pressroom/ContentDetailsViewer.page?ConceptType=PressReleases&id=1609010163236-458&WT.mc_id=FBK_ORG_PRESSRELEASE_EU_122620:~:text=UPS%20(NYSE%3A%20UPS)%20is,against%20the%20COVID%2D19%20pandemichttps://montrealgazette.com/news/local-news/i-was-delivering-hope-to-a-lot-of-canadians-montreal-driver-says?linkId=108129970https://www.youtube.com/watch?v=VzK3ZDUWLRA


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.

Socioeconomic Updates• Portugal marks record Covid-19 related deaths and new cases

• England is considering putting Covid patients in hotels, as a study

reveals deep trauma among ICU workers.

• Switzerland tightens restrictions in response to new variant

• Vatican begins Covid-19 vaccinations

• EasyJet cabin crew to become Covid-19 vaccinators as UK rollout is

fast tracked

• Germany to tighten restrictions on incoming travellers

Ocean Freight Updates

• TATL WB: Vessels still sailing at capacity and equipment

issues remain.

• MSC and Søren Toft join association working to develop hydrogen

as future fuel

• Adverse weather conditions is causing delay in shipping on the EU –

Transatlantic lane

Inland Transportation• BREXIT Impact:

• Traffic situation still normal at borders

• Ferry and channel working well

• No impact reported so far for UPS Europe FF

• Smaller trucking companies not well prepared for border crossing

• UK Cabinet Minister Gove expecting “significant additional disruption” at UK

borders in the coming weeks, particular on the Dover-Calais route

• Brexit disrupting cross border e-commerce.

Air Freight Updates • Cathay Pacific to launch Covid-19 vaccine transport solution

• Boeing 777 freighters bringing capacity to tight air cargo market: AirBridgeCargo;

Qatar Airways & China Airlines adding new-builds to their fleets

• Air France Cargo: Offering adjusted capacity via scheduled wide-body belly

services; Scheduled full freighter services & European narrow-body belly services

• All Nippon Airways: Scheduled freighters from FRA to NRT

• Due to disruption at container ports, increase in the number of charters

between the Asia & Europe and the transpacific has been observed

Europe Update for January 14th

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.”

1/13/2021

https://www.aircargonews.net/sectors/pharma-logistics/cathay-pacific-to-launch-covid-19-vaccine-transport-solution/



Socioeconomic Updates• Vaccine drive accelerates across India

• Covaxin shipped to 11 cities in India

• Africa secures close to 300 million vaccine doses

• Pakistan opens coronavirus vaccine registrations for frontline

workers

• The United Arab Emirates has been removed from the UK

government's travel corridor list,

Ocean Freight Updates • Space Situation from APAC to ME / ISC remains very

tight with Carriers Reporting over booked situation

• Equipment shortage continues to restrict export bookings

in all major exports markets in ISMEA (especially in ISC)

• Tight Space situation on Feeder vessels for Kolkata inbound cargo via

SGP/CMB/KRI(MAA).

• Few carrier are restricting or have stopped accepting bookings

Inland Transportation

• Saudi Arabia opened the land borders with Qatar in light of

this Agreement.

• UAE has been one of the biggest trade partner of Qatar with

majority of the trade moving in Road Transport

Air Freight Updates • Air India carries first consignment of Bharat Biotech Covid vaccine

from Hyderabad to Delhi

• Emirates update

• New destination – SEA, 4 flights per week, effective 03 Feb

• Additional Frequencies – AU, IN, ZA MA, BR, US

• EK suspends PAX into HKG for next 2 weeks;

• Aero Sail will start accepting shipments EX BOM to BKK,

DAC, SIN, KUL, HKG, CGK, RGN destinations

ISMEA Update for January 14th


1/13/2021



Socioeconomic Updates

• China: Shijiazhuang and Xingtai in Hebei province

are under lockdown.

• Australia: Brisbane announced a 3-day lockdown

on Friday (Jan 8). Sydney’s northern beaches

exited their lockdown on Sunday (Jan 10), joining

restriction in place across the rest of the city

• Japan: on Jan 7, Japan declared a state of

emergency over Tokyo and its three neighboring

prefectures (Kanagawa, China and Saitama)

• Korea: third wave of the COVID-19 appears to be

slowly declining after a peak

• Malaysia: RMCO (Recovery Movement Control

Order) has been extended until Mar 31


• Port congestion in all the region

• Korea: will require passengers to test negative before

arrival at ports starting on Jan 15

• Singapore: COVID-19 routine swab test for the marine

sector workers will be done every 7 days instead of 14

days

Air Freight Updates

• Philippines: the travel ban on flights from UK has been

extended to mid-January 2021. Effective Jan 3, the entry

of foreign travelers from the US will be prohibited

APAC Update for January 14th


1/13/2021



Socioeconomic Updates• New world record set for shipping rates: $350,000 per day

• As the lagging U.S. vaccine rollout accelerates, more

pharmacies will begin distributing doses to high-risk groups.

• Pandemic continues to fuel freighter demand

• Transportation capacity near 2-year low; pricing

surges

• Container rate records are shattered as US imports

surge

Ocean Freight Updates • South Carolina Ports continues riding volume wave

• Port of NY/NJ strives to keep cargo flowing

• New ship orders sink as fear of future economic

crisis grows

• Port of Savannah holds strong amid massive

market fluctuations

• Port of LA gives The Signal to cargo stakeholders

• Ship-to-shore operations suspended at Louisiana

ports and Port of Key West


• Trucking markets: Strong trucking backdrop should resume

after slow holiday week

• Trucking industry lender's quarterly data shows significant

market improvement.

• Class I railroads grapple with COVID-19 as unions seek

safety assurances.

• Trucking industry expected to remain on upswing through

2021

Air Freight Updates • Big 3 US airlines gear up to transport COVID-19 vaccines

• FMCSA expands HOS waiver to include COVID-19 vaccine

transport

• Lack of passenger flights holds down airfreight

• United Airlines cargo planes to share space again with

passengers

• UPS expanding at Kansas City airport as e-

commerce surges

• New air cargo security standards could gum up e-

commerce exports

United States Update for January 14th


1/13/2021



Socioeconomic Updates• Canada's vaccine rollout is slower than other countries

• Quebec imposes curfew as part of 4-week lockdown

• Canada clears 4 firms to bid on COVID-19 vaccine

distribution contract

• Transport Canada revises rules on worker fatigue in the rail

industry

• Canada COVID-19 vaccine distribution plans attract big firms

• Pfizer plans ‘just-in-time’ COVID-19 vaccine distribution in

Canada


• 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 • New COVID-19 boarding rules for airlines will be tighter than

expected

• Air Canada finalizes decision to convert aircraft to freighters

• Air Canada eyes converted freighters to capitalize on cargo

boom

• Air Canada is resuming many of its international

flights, heading to the U.S., the Caribbean, South

America, Europe and the Pacific

Canada Update for January 14th


1/13/2021



Socioeconomic Updates• Brazil scrambles to secure COVID vaccine from India

• Mexico, Chile and Costa Rica become the first countries in

Latin America to begin vaccination campaign

• Borderlands: Arizona-Mexico border trade recovering slowly

• COVID-19 deaths down in Peru

• 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


• Italian firm building $150M shipyard in Mexico

• 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


• Mexican rail blockade continues to affect freight flows

• 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 • Dubai airline launches new freighter service to Mexico

• 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)

LATAM Update for January 14th


1/13/2021

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

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.1/13/2021
https://www.accenture.com/th-en/insights/travel/coronavirus-air-cargo-capacityhttps://www.skycargo.com/https://www.emirates.com/us/english/https://www.lufthansa.com/us/en/homepagehttps://www.brusselstimes.com/category/all-news/eu-affairs/https://www.nytimes.com/https://www.bbc.com/newshttps://timesofindia.indiatimes.com/india

Documents

Global Novel Coronavirus Update January 14, 2021 · 2021. 1. 14. · Global Novel Coronavirus Update "This update contains information we have gathered from various public sources