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1 US MX 1 White House in recognition of the teamwork that ulti- mately led to the contract. Then, the new USMX team and the ILA rolled up our sleeves and set the wheels in motion to ensure a successful contract implementa- tion. Since implementing the Master Contract in April of 2013, we ran into some local contract issues in several ports, but we continue our efforts to work through these problems with the USMX Port Associations, ILA Locals and the ILA international. As USMX identified and implemented several key infor- mation gathering and reporting initiatives and business process changes to better serve our members and the industry as a whole (covered in more detail within this report), our carrier members were also announcing monumental changes to their business plans, read: P3, G6 and, eventually, CKYHE. These initiatives and changes, as they develop, will influence the maritime industry for years and we all have a key role to play in making them successful. Some of my favorite key successes achieved by USMX during 2013 include: CENTRALIZED COLLECTION OF CONTAINER ROYALTIES: I believe streamlining of the assessment collection process will benefit USMX's members, the ILA international and the ILA locals—a win, win, win—if you will! SAFETY: We continue implementation and maturation of the ILA-USMX Joint Safety Committee. This is an incredibly dedicated group of safety professionals who serve the industry to the extent I have never seen before. We worked with the Committee and the ILA leadership to further strengthen its role and increase the depth of what the Committee can do to assist the ports with their ongo - ing safety efforts. USMX continues to focus its efforts on gathering local Port Association safety data not previously centrally-compiled. This will generate critical comparative data vital to our members, while protecting individual Port Association data confidentiality. TRAINING: USMX initiated a detailed analysis of our coastwide and local port training efforts to ensure that we were using consistent "best practices" to provide the highest levels of training in the most cost efficient manner. We are committed to providing the correct resources to deliver the best-trained workforce possible. POLITICAL EFFORTS: We are working to strengthen and improve our efforts to support our industry, while creating some important USMX relationships in both Washington, DC, and in any local port states where we can be of assistance. We believe that USMX can serve all stakeholders in the industry. NEW WEBSITE: The USMX website was completely revamped in a way we believe is much more effective for use by our members, directors and staff. This project was completed on time, at budget, and has proven itself to be a great platform for member communication that can only improve over time. ILA RELATIONSHIP: We continue to work with the ILA executive council, our local port associations and the ILA locals to develop the highest level working relationships possible. I strongly believe that if we make every effort to work through issues immediately as they develop, then problems will be less likely to pile up and hinder future bargaining efforts, thus increasing bargaining productivity on both sides. I thank all of you for your support of USMX, my team, and me, personally, throughout the year and going forward. When the USMX directors asked me what's in store for 2014, I told them if we can repeat "more of the same 2013 accomplishments," then it will be a great year! Welcome to the new 2013 USMX Annual Report. I am hopeful that this endeavor is the first in a long string of useful and worthwhile annual reports. When I started thinking about what 2013 meant to USMX, the phrase that came to my mind was that 2013 was a "critical year of transition," not only for USMX, but also for several other key stakeholders in the industry: USMX and NYSA were transitioning key senior leadership teams; several long-term USMX directors transitioned to new chapters in their lives and careers; and the ILA leadership was into full swing under President Harold J. Daggett and his Executive Council. Jim Capo, who'd been in the industry since 1990, was ready to retire as USMX's CEO at the end of 2012. His actual retirement came a few months into 2013, but with a final, memorable and successful negotiation under his belt. USMX's Vice President of Labor Rela - tions, Brian Dugan, also retired, as did NYSA President Joe Curto and NYSA Vice President, Operations, Tony Petrizzo. USMX board member Jake Coakley retired after many years of successful service to USMX and the industry, and though long-time USMX board member Tony Scioscia also retired, he continues to actively con- tribute to the industry. Adding a little more excitement to the mix, the USMX team began 2013 already into the second extension of our Master Contract negotiations, after about 10 months of bargaining and under the helpful auspices of Director George Cohen and his team at the Federal Mediation and Conciliation Service!!! The history of that bargaining is pretty well known. Between Mr. Cohen, Mr. Daggett and Mr. Capo, we successfully concluded a new, six-year Master Con- tract agreement. The contract was overwhelmingly ratified by both sides and we even earned a trip to the Regards, David F. Adam Chairman & CEO CHAIRMAN & CEO'S MESSAGE — A CRITICAL YEAR OF TRANSITION

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