Trade and Tariffs Presenter: Ms. Tong Zhu Chief Commercial Officer - PowerPoint PPT Presentation

Item No.: 2A Date of Meeting: September 3, 2019 Trade and Tariffs Presenter: Ms. Tong Zhu Chief Commercial Officer & Chief Strategy Officer

Monthly Imports from Asia to NWSA (TEUs, Jan 2017-Jun 2019) 100,000 90,000 80,000 70,000 60,000 50,000 C H I N A 40,000 30,000 20,000 N E A S I A 10,000 S E A S I A 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2018 2017 2018 2019 JAN 2018: Tariffs imposed on imports of solar panels & washing machines MAR 2018: Tariffs imposed on imports of steel & aluminum JUL 2018: Tariffs imposed on $34B of Chinese imports AUG 2018: Tariffs imposed on $16B of Chinese imports SEP 2018: 10% tariffs imposed on $200B of Chinese imports, to increase to 25% by Jan 1, 2019. DEC 2018: Volume surge ahead of 25% tariff to be imposed on $200B of Chinese imports MAY 2019: Increase from 10%-25% tariffs on $200B of Chinese imports JUN 2019: US threatens tariffs on $300B of Chinese imports Source: PIERS (Foreign Full TEUs)

Monthly Exports from the NWSA to Asia (TEUs, Jan 2017-Jun 2019) 50,000 45,000 40,000 35,000 30,000 N E A S I A 25,000 20,000 15,000 C H I N A 10,000 5,000 S E A S I A 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2017 2018 2018 2019 APR 2018: Retaliation for US Section 232 tariffs JUL 2018: Retaliation for US Section 301 tariffs ($34B) AUG 2018: Retaliation for US Section 301 tariffs ($16B) SEP 2018: Retaliation for US Section 301 tariffs ($60B) JAN 2019: Suspension of retaliation for US Section 301 tariffs against autos and parts JUN 2019: Retaliation for US Section 301 tariffs ($60B) Source: PIERS (Foreign Full TEUs)

Asian Tigers on the Move 300,000 VIETNAM THAILAND INDONESIA MALAYSIA PHILIPPINES 31,608 250,000 39,118 28,139 27,845 200,000 35,309 58,165 33,709 24,906 28,774 150,000 45,622 30,958 42,289 33,558 63,618 32,436 34,240 100,000 46,808 45,039 39,762 38,665 50,000 88,879 78,014 71,434 58,287 46,686 0 2014 2015 2016 2017 2018 Source: PIERS (Foreign Full TEUs)

SE Asia - NWSA Direct Call & Transshipment-Connected Ports • Transit time and transport cost drive routing decisions • Multiple options available via East Coast (via Suez) and transpacific services • Port infrastructure in emerging markets limits opportunities for direct port calls • Inter-regional feeder ship service between local and transhipment ports drives the local trade

NWSA Strategies and Initiatives • Explore opportunities with shipping lines to expand on the number of SE Asia services and direct ports of call • Develop programs to retain and grow IPI cargo and recapture market share • Develop programs to improve gateway efficiency • Intensify efforts to promote the NWSA gateway to supply chain partners for SE Asia and other markets