UPS® Global Freight Forwarding

Novel Coronavirus update

Welcome!

April 17, 2020

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. This presentation is for informational purposes only and does not constitute legal advice. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to your specific circumstances.

© 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.

2

This presentation is for informational purposes only. It does not constitute legal advice; please consult your own legal counsel for such advice. Also, do not rely on this information without performing your own research.

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. This presentation is for informational purposes only and does not constitute legal advice. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to your specific circumstances.

© 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.

Global air cargo capacity is 31% lower than last yearAlmost all trade lanes across the world are seeing double-digit air cargo capacity declines compared to last year; decline of 31% shows an improvement compared to last week (-35%)

Source: Seabury ConsultingTotal air cargo capacity growth, 8-14 Apr 2020 vs. same week last year (YoY growth, %)

3

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. This presentation is for informational purposes only and does not constitute legal advice. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to your specific circumstances.

© 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.

Global Freight Forwarding communications

4

• Register to receive important notifications

• Service disruptions, rate changes, regulation updates

• https://gffsolutions.ups.com/Subscription-Management.html

• Visit the new Supply Chain Solutions landing page for the latest updates on the Novel Coronavirus

• https://www.ups.com/us/en/about/news/scs-important-updates.page

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. This presentation is for informational purposes only and does not constitute legal advice. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to your specific circumstances.

© 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.

Coronavirus updatePanelists

Andy NorrisQ & A

Randy StanleyVice President

International Air Freight

Steve McMichaelVice PresidentOcean Freight

Romaine SeguinPresident

UPS Global Freight Forwarding

Stuart LundVice President

Global Customs Brokerage & Trade Advisory Services

Brace CainModerator

Ron JordanVice President

Sales

5

Vito LosurdoVice President Global

Procurement

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. This presentation is for informational purposes only and does not constitute legal advice. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to your specific circumstances.

© 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.

6

Novel Coronavirus

Agenda

• Opening comments

• International Air Freight update

• Ocean Freight update

• Customs Brokerage update

• Q & A

• Closing comments

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. This presentation is for informational purposes only and does not constitute legal advice. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to your specific circumstances.

© 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.

7

Opening Comments

Romaine SeguinPresident UPS Global Freight Forwarding

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. This presentation is for informational purposes only and does not constitute legal advice. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to your specific circumstances.

© 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.

IAF update

• International air freight carrier update

• Air freight global impact

• What are we anticipating

Randy StanleyVice President IAF

8

Vito LosurdoVice President Procurement

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. This presentation is for informational purposes only and does not constitute legal advice. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to your specific circumstances.

© 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.

Ocean update

• Ocean Market Situation

• What we’re anticipating

Steve McMichaelVice President Ocean

9

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2019 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.

Customs Brokerage Update

• Global hotspots impacting Brokerage business

• Notable updates from US government agencies

• Personal Protective Equipment (PPE) Export / Import

Stuart LundVice President Global Customs Brokerage

& Trade Advisory Services

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2019 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.

Customs brokerage and compliance update

Updates of note from US government agencies

• The CDC has not identified any threat to international packages that are being cleared by local CBP

• CBP, FDA, and other PGA’s continue to be very helpful in expediting critical shipments

• CBP Covid-10 Cargo Resolution Team: COVID19_RELIEF_IMPORTS@cbp.dhs.gov

• USDA will allow some certificates and supporting documents to be uploaded to DIS instead of hard-copy submission.

Stuart LundVice President Global Customs Brokerage

& Trade Advisory Services

Personal Protective Equipment (PPE) Export / Import

FEMA prohibits export of certain PPE and authorizes CBP to detain shipments of covered commodities

• Effective 4/7/2020 to 8/7/2020

• Certain face-pieces, masks and gloves will be targeted

• UPS is working with CBP to provide additional guidance to the trade

China exports of PPE: specific set of commodities & HTS codes require multiple documents to be secured by the manufacturer and/or exporter in advance of turnover to Forwarder; manufacturer needs to be on National registry

GLOBAL HOTSPOTS

CBP Coronavirus Updates: https://www.cbp.gov/newsroom/coronavirus

Indian Subcontinent, Middle East, and Africa

• India: UPS brokerage is operating (for UPS flights) despite

government mandated shutdown (until May 4)

• Pakistan/South Africa: Limited to essential items

• Bangladesh/Nigeria/Bahrain: Limited service

Asia Pacific

• China is fully operational

• Philippines service delays due to limited customs manning.

Europe

• All Brokerage operations fully operational

North America

• All Brokerage operations fully operational

Americas

• Venezuela customs brokerage is operational

• All other countries: brokerage is operational

but some possible delays due to state

mandated curfews and customs staffing

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. This presentation is for informational purposes only and does not constitute legal advice. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to your specific circumstances.

© 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.

12

Novel Coronavirus

Q & A

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. This presentation is for informational purposes only and does not constitute legal advice. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to your specific circumstances.

© 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.

13

Closing Comments

Ron JordanVice President Sales

Thank you