USMX Animated PDFs

2 0 1 8 A N N U A L R E P O R T ii USMX-ILA MASTER CONTRACT: Concluding more than a year of bargaining, the majority of which was positive in tone and with no measurable disruptions, USMX and the ILA finalized and signed a new Master Contract covering our member ports from Maine to Texas. On September 25, 2018, at the headquarters of the ILA, our officers, directors and bargaining committee members gathered with ILA officers for an official signing ceremony commemorating our new 6-year agreement, scheduled to commence on October 1, 2018 and to conclude on September 30, 2024. LOCAL VS. MASTER CONTRACT BARGAINING: With member ports on the East and Gulf coasts negotiating their local conditions over the course of master contract bargaining, some greater than anticipated complexities arose in the bargaining paradigm. However, the local parties were committed to working through the tough issues and a very complicated process in pursuit of agreement. That is not to say there were no serious or complicated issues faced in concluding the $18 billion Master Contract deal. I was especially proud that our Bargaining Committee and the ILA understood how the ultimate outcome of the negotiations could affect the future of the maritime industry and, ultimately, the nation's economy. The bargaining process was conducted with a sense of cooperation, collaboration and camaraderie. As we learned during the previous and most recent Master Contract bargaining process, our ability to continue to jointly find solutions to the issues while protecting our employees, management organizations and the entire cargo infrastructure, is crucial. 2018 UPDATE: Overall, above and beyond bargaining, 2018 was a great year for USMX and our partners. TONNAGE: During the contract year ending September 30, 2018, our ports handled 158 million tons, a 6% increase over the previous year and the highest tonnage in our history. MANAGEMENT-ILA MANAGED HEALTHCARE TRUST FUND (MILA): MILA continues as one of the premier healthcare plans in the United States. It provides excellent benefits for our workforce and is managed incredibly well by Trustees from both USMX and the ILA. Thanks to the stewardship of the MILA Board of Trustees, plan costs continue to come in well below industry average, with benefits consistently at the top of the range—an example of what can be accomplished when management and the union work in tandem. SAFETY: The overall lost time incident frequency rate (LTIFR) for 2018 was 3.27—the lowest coastwide rate since we started collecting data in 2011. CONTAINER FREIGHT STATION TRUST FUND (CFS): Our CFS program continues to mature as part of the Master Contract. All units stripped or stuffed at CFS Stations qualify for a Container Royalty Credit. If the units worked are discharged or loaded from a USMX carrier member vessel, the carrier gets a full credit. In 2018, the USMX carriers received CFS royalty credits totaling $8.4 million. USMX GENERAL COUNSEL: I would like to congratulate Donato Caruso, Esq., USMX General Counsel, as he moves into a new phase of life—retirement! We are grateful for Dan's service for the last 15 years. His expertise in the field of maritime labor law is unparalleled. His advice, counsel and integrity have been an invaluable asset to USMX and we wish him the very best for the future. The passing of the mantel of General Counsel from Dan to William M. Spelman, Esq., has been seamless and we look forward to continuing our collaboration as we move forward. IN CONCLUSION: With a new Master Contract in place, and the job of its implementation at hand, USMX will continue to work on behalf of its members to maintain labor peace while meeting and exceeding the crucial demands of the global economy. Thank you, and enjoy the 2018 Annual Report! Sincerely, David F. Adam Chairman & CEO C H A I R M A N & C E O ' S M E S S A G E United States Mari me Alliance, Ltd.

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