Global Novel Coronavirus Update February 18, 2021 - UPS
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Global Novel Coronavirus Update
February 18, 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 market2/17/2021
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rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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.”
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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.
2/17/2021
"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document may quickly be superseded, despite our best efforts.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.”
Number of confirmed COVID-19 cases reported as of February, 17th
The virus continues to affect every region of the world, but some countries are experiencing high rates of infection.
*The New York Times
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.
2/17/2021 2/17/2021
Global air cargo capacity declined 13% in the last two weeks compared
to last year
Most trade lanes showing double digit decline compared to the last year. Transatlantic at -29% & LATAM at -52% decline.
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.
2/17/2021
UPS Supply Chain Solutions
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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.
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• 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. 2/17/2021
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.”
COVID-19 Vaccine Distribution
Market Updates*
• The United Nations (UN) children’s fund announced today that as part Coronavirus Vaccinations Around the World
of its vaccine distribution efforts it has signed agreements with
AirBridgeCargo, Air France KLM Martinair (AFKLMP) Cargo, Astral
Aviation, Brussels Airlines, Cargolux, Cathay Pacific, Emirates
SkyCargo, Etihad Cargo, Ethiopian Airlines Cargo, IAG Cargo, Korean
Air, Lufthansa Cargo, Qatar Airways, Saudia, Singapore Airlines and
United.
• Flights from Brussels Airport, carrying Pfizer’s Comirnaty Covid-19
vaccine, have been flown to more than 40 global destinations since
November last year.
• Mexico gets AstraZeneca COVID vaccine shipment from India
UPS Updates
• As per ShipMatrix, despite the added challenge of moving vaccines,
UPS’ on-time delivery rates during peak didn’t falter from the year
before.
• UPS joins the HOPE Consortium, to expedite rapid global delivery of
COVID-19 vaccines – UAE
*The New York Times
• UPS HEALTHCARE: New delivery capacity for Covid-19 vaccines
Source: CNBC; today.com 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. 2/17/2021
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.”
Brexit Updates
Market Updates* UPS Updates
• Post-Brexit Northern Ireland volumes shipping via Scotland instead of Dublin • UPS SCS is working without constraints
• As per Port Boulogne Calais chairman Jean-Marc Puissesseau the phasing-in of • Comprehensive guidelines for importers and exporters available on
additional UK border checks will be “smooth” ups.com
• Now only 12% of trucks coming from the UK are being asked to park and go • EU/UK Trade & Cooperation Agreement (TCA)
through additional checks, with another 3% of freight volumes coming via • UK Brexit Guidence
ferry being subject to customs controls compared to 45% in January .”
Source: *Seabury ; CNBC; today.com 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. 2/17/2021This 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 February 18th
Socioeconomic Updates Air Freight Updates
• Eurozone GDP fell by a historic 6.8% in 2020 • The increase in demand due to Chinese New Year. February volumes are up by
• EU orders additional 200 million Pfizer / BioNTech vaccines 40% compared to last year
• Johnson & Johnson coronavirus vaccine submitted for EU approval • Shipping line CMA CGM to launch A330F air cargo operation
• WHO warns that infections down in Europe but it is still vulnerable • AirBridgeCargo diverts flights as Frankfurt handling comes under pressure
• Ten Schengen countries (Germany, Spain, the Czech Republic, • The High Court has overturned a UK government decision to allow the
Denmark, Hungary, Austria, Portugal, Finland, Belgium and development of Manston Airport into a cargo hub
Norway) introduced border controls for health reasons • Many routes in and out of Heathrow becoming non-viable as the UK
imposes severe quarantine restrictions on arrivals
Ocean Freight Updates Inland Transportation
• Congestion between Germany and a number of its eastern neighbors
• Limitation of export delivery acceptance at Hamburg
observed
Terminals
• Tougher border controls with both the Czech Republic and Austria in place;
• Strong overall cargo volume, industrial action, inclement weather
demands for test result from truck drivers crossing border
together with ongoing congestions and delays in most European ports
• Leading to long queues at the border but also disruption to freight transport
leading to disruptions of the vessel network, all Hamburg terminals are
across Eastern Europe
now experiencing maximum yard utilization.
• No discussion of closing the border with Poland or Denmark but there is some
• General recommendation to make pre-bookings 4-6 weeks prior to
talk of extending controls at the French border.
vessel sailing date & explore possibilities to divert to LCL Consol Box /
PLCL / Regular LCL
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
© 2018
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020 United
United Parcel
Parcel service
Service of of America,
America, Inc.
Inc. UPS,
UPS, thetheUPS
UPS brandmark,and
brandmark, thethe
color brown
color are are
brown trademarks of United
trademarks Parcel
of United Service
Parcel of America,
Service Inc. All
of America, rights
Inc. reserved.
All rights reserved.
2/17/2021This 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 February 18th
Socioeconomic Updates Air Freight Updates
• India: Over 87 lakh Covid-19 vaccine doses administered in • Air New Zealand launches Guangzhou PAX-cargo flights
India so far • Dubai International reported a 70% fall in traffic over the past year
• EK suspends flights to HRE from 13th Feb to 18th Feb, flights to be
• Follow Covid-19 norms or face fresh lockdown, warns
operated DXB-LUN instead of DXB-HRE-LUN
Maharashtra CM
• Kenya Airways increasing its cargo capacity by removing the seats from
• Pakistan begins registration of elderly for Covid-19 two of its Boeing 787 Dreamliner aircrafts
vaccination • QA Airways increasing the flights frequency to the USA
• Melbourne and Auckland snap lockdowns to end • Saudia Airlines announced its suspended PAX flights will
be operating as Cargo only
• Sri Lanka is now open to travelers
Ocean Freight Updates Inland Transportation
• Space & equipment’s continue to be extremely tight for • Daimler Trucks unveils BharatBenz reefer truck to
all major ISMEA location (IN/PK in specific). move Covid vaccines in India
• Carriers have started allocating space based on target vessels • CMA CGM launches train service on Western Dedicated Freight
based on cargo readiness for March. Corridor
• Maersk launched a cross-country rail service in India
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
© 2018
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020 United
United Parcel
Parcel service
Service of of America,
America, Inc.
Inc. UPS,
UPS, thetheUPS
UPS brandmark,and
brandmark, thethe
color brown
color are are
brown trademarks of United
trademarks Parcel
of United Service
Parcel of America,
Service Inc. All
of America, rights
Inc. reserved.
All rights reserved.
2/17/2021This 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 February 18th
Socioeconomic Updates Air Freight Updates
• Australia: International flights to Melbourne stopped until Feb 17
• Australia: state of Victoria entered a five-day
lockdown on Feb 13 • Korea: suspension of operations for direct flights
departing the UK scheduled for until the 11th will increase
• Korea: the local health authority eased the social until the 25th of February
distancing rule from Level 2.5 to Level 2.0 for the
greater Seoul metropolitan area and Level 1.5 for • New Zealand: Pick up and deliveries of freight in
other areas, for two weeks starting Feb 15 Auckland is only to essential industries, delays for
imports expected
• New Zealand: Auckland is at Alert Level 3. The rest
of New Zealand is at Alert Level 2
Ocean Freight Updates
• Singapore: On Feb 9, Ministry of Health
announced that they will tighten its border measures
for people with travel history to Vietnam. Visitors • Port congestion in the whole region
from New South Wales are now allowed to enter
Singapore • China: lock down and suspension of local transportation led
to some delays
• Philippines: Government will ease restrictions
starting from Feb 15, allowing reopening of leisure • New Zealand: Pick up and deliveries of freight in Auckland
establishments is only to essential industries, so expect delays for imports
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
© 2018
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020 United
United Parcel
Parcel service
Service of of America,
America, Inc.
Inc. UPS,
UPS, thetheUPS
UPS brandmark,and
brandmark, thethe
color brown
color are are
brown trademarks of United
trademarks Parcel
of United Service
Parcel of America,
Service Inc. All
of America, rights
Inc. reserved.
All rights reserved.
2/17/2021This 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 February 18th
Socioeconomic Updates Air Freight Updates
• Biden “Made in America” executive order advocates for 100- • Airlines absorb $391 billion revenue shortfall in 2020
year-old U.S. maritime law • Lack of passenger flights holds down airfreight
• Biden signs executive order to strengthen COVID supply • United Airlines cargo planes to share space again with
chains passengers
• Importers face massive hike in ocean contract costs • UPS expanding at Kansas City airport as e-
• Maritime sector nervous about chances for COVID-19 relief commerce surges
New world record set for shipping rates: $350,000 per day • New air cargo security standards could gum up e-
• As the lagging U.S. vaccine rollout accelerates, more commerce exports
pharmacies will begin distributing doses to high-risk
groups.
Ocean Freight Updates Inland Transportation
• Ports press Congress, Biden for emergency funds
[api-esp.piano.io]
• Crude tankers stuck in ‘rate hell’ but floating-storage pain
• Port of Long Beach has best January on record
wanes
South Carolina Ports rides rails to robust January
• Truckers chain up as snowstorms hit several Western states
• Port of LA will pay container terminals for efficiency
this week
gains
• Trucking markets: Strong trucking backdrop should resume
• COVID outbreak could cripple California container
after slow holiday week
ports
• Trucking industry lender's quarterly data shows significant
market improvement.
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
© 2018
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020 United
United Parcel
Parcel service
Service of of America,
America, Inc.
Inc. UPS,
UPS, thetheUPS
UPS brandmark,and
brandmark, thethe
color brown
color are are
brown trademarks of United
trademarks Parcel
of United Service
Parcel of America,
Service Inc. All
of America, rights
Inc. reserved.
All rights reserved.
2/17/2021This 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 February 18th
Socioeconomic Updates Air Freight Updates
• Canada's vaccine rollout is slower than other countries • New COVID-19 boarding rules for airlines will be tighter than
• Quebec imposes curfew as part of 4-week lockdown expected
• Canada clears 4 firms to bid on COVID-19 vaccine • Air Canada finalizes decision to convert aircraft to freighters
distribution contract • Air Canada eyes converted freighters to capitalize on cargo
• Transport Canada revises rules on worker fatigue in the rail boom
industry • Air Canada is resuming many of its international
• Canada COVID-19 vaccine distribution plans attract flights, heading to the U.S., the Caribbean, South
big firms America, Europe and the Pacific
• Pfizer plans ‘just-in-time’ COVID-19 vaccine
distribution in Canada
Ocean Freight Updates Inland Transportation
• Ports are operational. Cargo transportation is still
allowed • Daily pickups and deliveries except where restrained by
• Slow in/out processing and delays in customs government
clearance
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
© 2018
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020 United
United Parcel
Parcel service
Service of of America,
America, Inc.
Inc. UPS,
UPS, thetheUPS
UPS brandmark,and
brandmark, thethe
color brown
color are are
brown trademarks of United
trademarks Parcel
of United Service
Parcel of America,
Service Inc. All
of America, rights
Inc. reserved.
All rights reserved.
2/17/2021This 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 February 18th
Socioeconomic Updates Air Freight Updates
• Pfizer applies for full COVID-19 vaccine approval in Brazil
• Dubai airline launches new freighter service to Mexico
• Oil prices shake off COVID blues as Brent hits $60
• LATAM Common Carriage flights were reduced or forbidden
• Brazil scrambles to secure COVID vaccine from India
to/from US, Europe & Asia (19 countries: AR, BO, BR, CL, CO,
• Mexico, Chile and Costa Rica become the first countries in
CR, DO, EC, GT, HN, NI, PA, PE, PR, PY, SR, SV, UY, VE)
Latin America to begin vaccination campaign
• 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
Ocean Freight Updates Inland Transportation
• Despite some successes, Mexico still struggles with
• Italian firm building $150M shipyard in Mexico
fuel theft
• Ocean Port Restrictions (3 countries: DO, HN, PR)
• Mexican rail blockade continues to affect freight flows
• DO: Operations had been restricted up to 6pm
• US-Mexico truck crossings decline 22% at Port Laredo
• HN: Limited service to Puerto Cortez Port
• Customs operation impacted (9 Countries: AR, CR, DO, EC,
• PR: No passenger vessel allowed
GT, PA, PE, SR, VE)
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
© 2018
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020 United
United Parcel
Parcel service
Service of of America,
America, Inc.
Inc. UPS,
UPS, thetheUPS
UPS brandmark,and
brandmark, thethe
color brown
color are are
brown trademarks of United
trademarks Parcel
of United Service
Parcel of America,
Service Inc. All
of America, rights
Inc. reserved.
All rights reserved.
2/17/2021Thank You
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.
2/17/2021 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
©©2017
2020United
UnitedParcel
ParcelService
service of
of America,
America, Inc.
Inc. UPS,
UPS, the
theUPS
UPSbrandmark,
brandmark,the
thecolor
colorbrown
brownare
aretrademarks of of
trademarks United Parcel
United Service
Parcel of America,
Service Inc.Inc.
of America, All rights reserved.
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