USMX Animated PDFs

1 RELATIONS & GOVERNMENT AFFAIRS is provided on Pg. 4. In addi on to this year's inclusion of a new USMX Carriers sec on (Pg. 6) in the Annual Report, we have also ins tuted a new USMX Direct Employers sec on (Pg. 18). These two new sec ons, along with the regularly featured USMX Port Associa ons sec on (Pg. 40), provide company profiles and informa on for all three of our USMX membership classes. GOVERNMENT AFFAIRS Due to pushback from the conten ous ILWU-PMA West Coast nego a ons, we saw renewed focus by Washington, DC, on our industry. Ul mately, USMX spent considerably more me there in 2016 than in previous years. Our government affairs ini a ve con nues on ma ers related to our four focus areas of par cular importance to our members: WRDA: Infrastructure development has been addressed in the new WRDA bill, with spending for port-related projects increased. Pension Reform: Legisla on was enacted in December 2015. The ini al tests with- in the legisla ons have not met expecta ons, however, dialogue on be ering the legisla on con nues. CBP Funding: USMX cosigned a le er to Congress calling for increased funding for Customs and Border Protec on, par cularly in the mari me sector. LHWA Reform: Mee ngs were held with House/Senate representa ves support- ive of reform. A be er chance of success is present with the new Administra on in place. 2016 IN CONCLUSION While 2016 was certainly a challenging year, we are confident that USMX will come out of it stronger than ever. We look forward to the challenges in the coming year, confident that we are a be er organiza on because of what we have learned and accomplished in 2016. CENTRALIZED COLLECTIONS The Container Royalty Central Collec on Fund (CRCCF) system is up and running smoothly, has succesfully brought all carriers live by CYE 9-30-16, has rolled out a CFS credit module matching containers with manifests, and has ensured proper management and documenta on of Hanjin's bankruptcy to guarantee minimal exposure to the various royalty funds. Details on all of the USMX-ILA JOINT TRUST FUNDS start on Pg. 34. INDUSTRY SAFETY LTIFR: 2016 was a banner year, with our USMX ports logging an overall Lost Time Incident Frequency Rate of 3.9. This all- me low rate represents an ap- proximate 10.5% reduc on over previous years, and shows a marked an increase in produc vity and improved training for our workforce. Safety data and details can be found on Pgs. 26-31. JSC: The Joint Safety Commi ee (JSC) has never had a greater presence than it did in 2016. Commi ee members together and individually interacted with USMX members and the ILA on a local (port opera ons/safety audits, port safety commi ee mee ngs) and coastwise (presenta ons at conferences, panels and mee ngs) basis. This con nued par cipa on makes the JSC a permanent fixture in the area of occupa onal safety and health in the mari me industry. JSC up- dates can be found on Pgs. 26-27. NMSA Award: Addi onally, we would like to congratulate our industry colleague, Mark Montgomery (Ports America Chesapeake), who was named the Na onal Mari me Safety Associa on's 2016 Person of the Year, for efforts on behalf of NMSA and industry safety. TRAINING Contract year ending 9-30-18 marked the first full year since the implementa on of the Joint Training Commi ee (JTC) to oversee training issues and approve the coastwise training budget. Safety remains a major focus area for our USMX mem- ber ports and employers and for the ILA and its workforce. Details on the USMX- ILA joint training program and JTC ac vi es can be found on Pg. 33. USMX MEMBER RELATIONS It has long been a goal of USMX to communicate mely and accurate informa- on to our members. In 2016, we con nued our one-on-one dialogue with our direct employer members and our port associa on members in an effort to in- crease communica on and par cipa on in our various programs and ini a ves. Member feedback and involvement with regard to this communica on effort has been posi ve. We also spent me visi ng with carrier member headquarters of- fices overseas, which proved a worthwhile effort for our member principals to put faces to the names of USMX's execu ve staff. Details regarding USMX MEMBER CHAIRMAN & CEO'S MESSAGE David F. Adam

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