USMX Animated PDFs

2 U S M X 2 0 2 3 A N N U A L R E P O R T ANer the high stress of the COVID years, 2023 was somewhat of a return to normalcy and with this we saw reduction in cargo volumes in several key ports as the U.S. economy seQled into a more normal paQern. We also saw movement of freight from the USEC to the USWC aNer the PMA and ILWU seQled on a new contract. Master Contract Talks We continued discussions on a new Master Contract bargaining agreement at the beginning of 2023 but the discussions lost momentum in early spring due to the significant economic gaps that currently exist. Informal discussions did not pick up again until aNer the ILA conventions. 2024 will be a critical year with full focus on seQling a new contract. Outside of bargaining, USMX remains focused on improving contract administration at all levels. At the funds level, the importance of working together towards a mutual benefit of the parties as well as the industry continues to be a top priority for USMX and the ILA. n CCCSC implemented a new accounting and manhour system, focused on streamlining and automating several functions as well as improving reporting. n The implementation of the Maritime Information System continues to add more features as both the ILA and management utilize the system. This system has been critical in evaluating data accuracy. n Each benefit fund works independently to make necessary changes to ensure the integrity of the fund is upheld from a financial and member level perspective. O N W A R D T O 2 0 2 4 Top priority for the year Negotiating a new Master Contract agreement during a turbulent Presidential election will require a lot of discipline by the parties and it will no doubt create some challenges that we are not aware of yet. n All the while our carriers are managing severe challenges with the Panama Canal's water draN. n The Red Sea/Suez Canal Routes are also causing severe challenges. n We have also seen movement to realign the various carrier alliances that will inevitably require changes in pro forma schedules, relationships, operating scenarios, etc. Thanks and regards, David F. Adam DAVID F. ADAM Chairman & Chief Executive Officer 2 0 2 3 U S M X C H A I R M A N A N D C E O ' S M E S S A G E

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