global novel coronavirus update february 18, 2021...welcome to our first ups scs virtual conference...
TRANSCRIPT
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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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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.”
February 18, 2021
2/17/2021
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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.
Join Supply Chain Virtual Connecthosted by UPS Supply Chain Solutions
2/17/2021
Welcome to our first UPS SCS virtual conference covering the latest trends and strategy in today's global supply chains.
We have a great line-up of supply chain topics that you don't want to miss out on, including updates on COVID Vaccine Logistics, the Future of Forwarding, Hot Topics in Trade and more.
Register Today
The first 1,000 people to sign up and submit their mailing address before February 20, 2021 will be shipped free UPS Swag!
Wednesday, March 10, 2021, 1PM-5PM (EST)
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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.
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.
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 Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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.”
*The New York Times
2/17/2021
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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.© 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.
Global air cargo capacity declined 13% in the last two weeks compared to last year
2/17/2021
Most trade lanes showing double digit decline compared to the last year. Transatlantic at -29% & LATAM at -52% decline.
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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.© 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 Supply Chain Solutions
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
2/17/2021
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
Customer First. People Led. Innovation Driven.
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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
COVID-19 Vaccine Distribution
Source: CNBC; today.com
Market Updates* • The United Nations (UN) children’s fund announced today that as part
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
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.”
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
• UPS HEALTHCARE: New delivery capacity for Covid-19 vaccines
Coronavirus Vaccinations Around the World
*The New York Times
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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
Brexit Updates
Source: *Seabury ; CNBC; today.com
Market Updates*
• Post-Brexit Northern Ireland volumes shipping via Scotland instead of Dublin
• As per Port Boulogne Calais chairman Jean-Marc Puissesseau the phasing-in of
additional UK border checks will be “smooth”
• Now only 12% of trucks coming from the UK are being asked to park and go
through additional checks, with another 3% of freight volumes coming via
ferry being subject to customs controls compared to 45% in January .”
UPS Updates
• UPS SCS is working without constraints
• Comprehensive guidelines for importers and exporters available on
ups.com
• EU/UK Trade & Cooperation Agreement (TCA)
• UK Brexit Guidence
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.”
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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.
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• Eurozone GDP fell by a historic 6.8% in 2020
• EU orders additional 200 million Pfizer / BioNTech vaccines
• Johnson & Johnson coronavirus vaccine submitted for EU approval
• WHO warns that infections down in Europe but it is still vulnerable
• Ten Schengen countries (Germany, Spain, the Czech Republic,
Denmark, Hungary, Austria, Portugal, Finland, Belgium and
Norway) introduced border controls for health reasons
Ocean Freight Updates • Limitation of export delivery acceptance at Hamburg
Terminals
• Strong overall cargo volume, industrial action, inclement weather
together with ongoing congestions and delays in most European ports
leading to disruptions of the vessel network, all Hamburg terminals are
now experiencing maximum yard utilization.
• General recommendation to make pre-bookings 4-6 weeks prior to
vessel sailing date & explore possibilities to divert to LCL Consol Box /
PLCL / Regular LCL
Inland Transportation
Air Freight Updates • The increase in demand due to Chinese New Year. February volumes are up by
40% compared to last year
• Shipping line CMA CGM to launch A330F air cargo operation
• AirBridgeCargo diverts flights as Frankfurt handling comes under pressure
• The High Court has overturned a UK government decision to allow the
development of Manston Airport into a cargo hub
• Many routes in and out of Heathrow becoming non-viable as the UK
imposes severe quarantine restrictions on arrivals
Europe Update for February 18th
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.”
2/17/2021
• Congestion between Germany and a number of its eastern neighbors
observed
• Tougher border controls with both the Czech Republic and Austria in place;
demands for test result from truck drivers crossing border
• Leading to long queues at the border but also disruption to freight transport
across Eastern Europe
• No discussion of closing the border with Poland or Denmark but there is some
talk of extending controls at the French border.
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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.
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• India: Over 87 lakh Covid-19 vaccine doses administered in
India so far
• Follow Covid-19 norms or face fresh lockdown, warns
Maharashtra CM
• Pakistan begins registration of elderly for Covid-19
vaccination
• Melbourne and Auckland snap lockdowns to end
• Sri Lanka is now open to travelers
Ocean Freight Updates • Space & equipment’s continue to be extremely tight for
all major ISMEA location (IN/PK in specific).
• Carriers have started allocating space based on target vessels
based on cargo readiness for March.
Inland Transportation• Daimler Trucks unveils BharatBenz reefer truck to
move Covid vaccines in India
• CMA CGM launches train service on Western Dedicated Freight
Corridor
• Maersk launched a cross-country rail service in India
Air Freight Updates • Air New Zealand launches Guangzhou PAX-cargo flights
• 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
operated DXB-LUN instead of DXB-HRE-LUN
• Kenya Airways increasing its cargo capacity by removing the seats from
two of its Boeing 787 Dreamliner aircrafts
• QA Airways increasing the flights frequency to the USA
• Saudia Airlines announced its suspended PAX flights will
be operating as Cargo only
ISMEA Update for February 18th
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.”
2/17/2021
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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.
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
• Australia: state of Victoria entered a five-day
lockdown on Feb 13
• Korea: the local health authority eased the social
distancing rule from Level 2.5 to Level 2.0 for the
greater Seoul metropolitan area and Level 1.5 for
other areas, for two weeks starting Feb 15
• New Zealand: Auckland is at Alert Level 3. The rest
of New Zealand is at Alert Level 2
• Singapore: On Feb 9, Ministry of Health
announced that they will tighten its border measures
for people with travel history to Vietnam. Visitors
from New South Wales are now allowed to enter
Singapore
• Philippines: Government will ease restrictions
starting from Feb 15, allowing reopening of leisure
establishments
Ocean Freight Updates
• Port congestion in the whole region
• China: lock down and suspension of local transportation led
to some delays
• New Zealand: Pick up and deliveries of freight in Auckland
is only to essential industries, so expect delays for imports
Air Freight Updates
• Australia: International flights to Melbourne stopped until Feb 17
• Korea: suspension of operations for direct flights
departing the UK scheduled for until the 11th will increase
until the 25th of February
• New Zealand: Pick up and deliveries of freight in
Auckland is only to essential industries, delays for
imports expected
APAC Update for February 18th
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.”
2/17/2021
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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.
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• Biden “Made in America” executive order advocates for 100-
year-old U.S. maritime law
• Biden signs executive order to strengthen COVID supply
chains
• Importers face massive hike in ocean contract costs
• Maritime sector nervous about chances for COVID-19 relief
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.
Ocean Freight Updates • Ports press Congress, Biden for emergency funds
[api-esp.piano.io]
• Port of Long Beach has best January on record
South Carolina Ports rides rails to robust January
• Port of LA will pay container terminals for efficiency
gains
• COVID outbreak could cripple California container
ports
Inland Transportation
• Crude tankers stuck in ‘rate hell’ but floating-storage pain
wanes
• Truckers chain up as snowstorms hit several Western states
this week
• Trucking markets: Strong trucking backdrop should resume
after slow holiday week
• Trucking industry lender's quarterly data shows significant
market improvement.
Air Freight Updates • Airlines absorb $391 billion revenue shortfall in 2020
• 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 February 18th
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.”
2/17/2021
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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.
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• 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
Ocean Freight Updates
• Ports are operational. Cargo transportation is still
allowed
• Slow in/out processing and delays in customs
clearance
Inland Transportation
• 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 February 18th
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.”
2/17/2021
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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.
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• Pfizer applies for full COVID-19 vaccine approval in Brazil
• Oil prices shake off COVID blues as Brent hits $60
• Brazil scrambles to secure COVID vaccine from India
• Mexico, Chile and Costa Rica become the first countries in
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
• 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
Inland Transportation
• Despite some successes, Mexico still struggles with
fuel theft
• 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 February 18th
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.”
2/17/2021
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Thank You
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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.© 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.2/17/2021