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A REVIEW OF 2019 THROUGH THE LENS OF A PANDEMIC As I sit down to write my review of 2019 (for this 2019 Annual Report) it is already the middle of 2020. You may wonder why I am writing this in June, when the report is usually printed by June . . . but, more about that later. As I look back on 2019, at this point it is almost hard to remember much detail, given the unprecedented events consuming us since February of 2020. As our first full year of the new 2018-2024 Master Contract, 2019 started out with minimal outstanding open issues since its implementation on October 1, 2018. Projections showed a decent 2019, foreshadowing minimal disruption and few exceptions or excitement on the horizon. Our nation's economy was humming along, and U.S. consumption was up, due to strong consumer sentiment. We did have concerns about the ongoing turbulence around the U.S.- China trade deal, but that seemed to be primarily an issue of potential impact, good or bad, on agricultural exports. A TEXTBOOK CASE What we saw in 2019, from a business standpoint, was a textbook case. Performance around almost every category of the business (costs, volumes, manhours, revenues from the various royalties, collections, etc.) met or slightly exceeded expectations. To the best of my recollection, we had no significant labor disruptions and safety performance stayed consistent, with some slight improvement. I was always taught that running a business was about setting up a good plan and executing it, while minimizing surprises and minimizing exceptions through good management. A good day, week, or month at work, if everything is going according to plan, should be boring— 2019 was that kind of year. That's when you have an actual opportunity to focus on where you can make incremental improvements that truly impact the business over the long term. Seemed like a great place to be . . . THE NEW "NORMAL" Now, back to 2020…the first two months of this year started out pretty much like 2019 ended. By mid-March it became obvious that it was not going to stay that way. As the coronavirus disease 2019 (COVID-19) pandemic took hold of the U.S. and the rest of the world, it became evident that this was going to be a VERY, VERY challenging and different year. We have spent the last several months with a primary focus on maritime workforce safety and as we have navigated our way through (hopefully) the peak of the pandemic, we have been extremely fortunate to have seen what I believe is an amazing result. We are by no means out of the woods yet, but we seem to have settled into a "new normal," in terms of workforce safety. All of the "pants on fire" issues that we dealt with initially have generally been ironed out and the industry now has new processes and procedures in place to allow for a consistency that provides for that all-important workforce safety, while also providing consistent daily operations. A TEAM EFFORT The ability to get this far has been a tribute to the efforts of multiple parties working in tandem: the diligence of our Joint ILA-USMX Safety Committee; the incredible work of USMX's member companies and their front line management; the amazing flexibility and can-do spirit of the essential ILA workforce; the ongoing attention and support of our Port Association members; the Carriers' continuing efforts to bring cargo to our ports; and the leadership of Direct Employer organizing. USMX and the ILA's senior leadership have done our small part in support of all the parties in any way we can. The COVID Pandemic Relief (CPR) Fund, a supplemental un- employment benefit plan to assist qualified ILA workers unable to work because of COVID-19, is a prime example of both sides pulling together to create a solution that works for both sides and is critical to successfully moving forward through this uncharted territory. We appreciate the support of counsel (The Lambos Firm for USMX and Marrinan & Mazzola Mardon for ILA) and the USMX and ILA management and staff in assisting with the quick implementation of the CPR Fund. KEEP ON KEEPING ON So, as I look back on 2019, I am thankful that such a "textbook" year allowed us to be prepared for 2020— a year that we simply would never have believed was possible in January, that turned impossibly urgent and industry- and life-threatening by March. I am so ap- preciative of all the amazing work, energy and support of the entire industry as EVERYONE leaned into the amazingly challenging circumstances. I can only hope that we continue hurdling the obstacles that this year places in front of us as well as we were able to hurdle those obstacles we've already seen. My wish is that everyone will do their utmost to keep themselves and their loved ones safe, as the nation and the world work toward a medical solution to curb the pandemic. I hope to be writing a happier ending to all this in the 2020 Annual Report . . . C H A I R M A N & C EO'S M ES SAG E ii USMX 2019 ANNUAL REPORT David F. Adam Chairman & CEO

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