COVID-19:

EMERGENCY SITUATION SURCHARGE (ESS) ADJUSTMENT

Effective May 24th, 2020.

WHAT IS THE ESS ADJUSTMENT

Given the significant impacts of COVID-19 on the global aviation industry and in order to help us maintain reliable and high quality delivery services for you and your customers, we introduced a temporary Emergency Situation Surcharge (ESS) in early April.

Since the onset of this global pandemic, our team have been working around the clock, continually adapting and adjusting the operations of our global network to align with new developments, regulatory requirements and constant changes in capacity and demand.

That includes further significant reductions in – or the complete cancellation of – commercial flights in most countries, which has a dramatic impact on air uplift capacity.

As we work to serve the urgent needs of our customers, these factors, among others, have increased our costs beyond sustainable levels, which has necessitated an adjustment to the ESS.

WHY ARE WE ADJUSTING THE EMERGENCY SITUATION SURCHARGE?

• As market conditions are continuously evolving with the ongoing COVID-19 situation, the Emergency Situation Surcharge (ESS) will be adjusted effective May 24th, 2020.

• The ESS adjustment reflects the changing dynamics in the market and the ongoing challenges to securing available air capacity. The adjusted ESS charge will reflect the peak cost levels on different trade lanes as opposed to having one standard global charge.

• Furthermore, the charging mechanism will change from a charge per shipment to a charge per kilogram (kg) in order to maintain a more gradual pricing model.

Please note that the ESS is a temporary charge, which allows us to cover part of the operating cost increases and the necessary air network adjustments. We will continue to evaluate and adjust the ESS as market conditions evolve for the duration of this emergency situation.