UPS ® Global Freight Forwarding Novel Coronavirus update Welcome! April 17, 2020
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: [email protected]
• 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