SC International Trade Conference James A. Capo Chairman/CEO

Bargaining History on the East and Gulf Coasts In 1957 North Atlantic Ports agree to Contract with ILA covering Five Issues Wages Hours Pension Contributions Welfare Contributions Term of Agreement ILA wants all ports covered from Maine to Texas

Period from 1957 to 1977 CHAOTIC! Different Management groups – NYSA, CONASA, etc. South Atlantic and West Gulf don’t participate NLRB Charges Strikes-different ports, different duration Taft Hartley injunctions

Period from 1977 to 1990 Things begin to level out Containerization agreement Jurisdiction JSP Carriers become more of a force

Carriers Container Council, Inc. assumes role as lead negotiator for Management. All management groups are still not bound 1996 – All management groups agree to participate and agree to be bound by terms and conditions (informal alliance) 1997 – United States Maritime Alliance, Ltd. (USMX) incorporated. Formal organization of Carriers, Stevedores, Terminal Operators and Port Associations

Current Master Contract Covers every ILA Port from Maine to Texas 95% of containerized cargo handled by USMX carriers and terminal operators in Master Contract ports Over 100 million tons handled in most recent Master Contract year

Current Master Contract continued National Health Care Plan (MILA) offers uniform benefits to 60,000 longshore employees, dependents, and retirees Master Contract allocates container royalty benefits among ILA ports to protect benefits in every port Covers almost every major contract term for all ILA crafts Determines amount of contributions to local funds

Objectives of USMX Determine all questions of basic policy with respect to negotiation, implementation, and administration of the terms and conditions of collective bargaining agreements with the ILA Determine all questions of basic policy with respect to the administration of employee benefit funds which are funded by members of USMX Act as Chief Management Representative in Master Contract bargaining

USMX Membership Carriers APL, Ltd. Atlantic Container Line CMA/CGM (America), Inc. CCNI China Shipping (North America) Holding Co. Ltd. Columbia Coastal Transport COSCO Container Lines Americas, Inc. Evergreen America Corporation Hamburg Sud North America, Inc. Hanjin Shipping Company, Ltd.

Carriers continued Hapag-Lloyd (America), Inc. Horizon Lines, LLC Italia Marittima America Corporation “K Line America, as agents for Kawasaki Kisen Kaisha, Ltd. Maersk, Inc. Mediterranean Shipping Company SA MOL (America) Inc. NYK Line (North America), Inc.

Carriers continued OOCL (USA), Inc. Turkon America, Inc. United Arab Shipping Company Wallenius Wilhelmsen Lines Americas Yang Ming (America) Corp. Zim American Intergrated Shipping Services Co., Inc.

Terminal Operators APM Terminals, Inc. Ceres Terminals Incorporated CP&O, LLC Global Terminal & Container Services, Inc. Maher Terminals, Inc. Marine Terminals Corporation East Ports America, Inc. R.O.White & Co., Inc. SSA/Cooper, LLC

Ports Associations Boston Shipping Association Georgia Stevedore Association Hampton Roads Shipping Association Jacksonville Maritime Association, Inc. Midgulf Association of Stevedores, Inc. New York Shipping Association, Inc. Ports of Delaware River Marine Trade Association South Carolina Stevedores Association Southeast Florida Employers Port Association, Inc. Steamship Trade Association of Baltimore, Inc. West Gulf Maritime Association

USMX Headquarters in Iselin, New Jersey Six employees in New Jersey location Two employees in regional office in Savannah, Georgia Funded by carrier assessment of five cents per ton. Ports Associations and Terminal Operators pay an annual stipend of $5000

Interaction between USMX and ILA Serve as trustees on a number of jointly administered funds: Managed Care Health Care Fund (MILA) Container Freight Station Fund Carrier-ILA Container Royalty Fund Industry Resource Committee (IRC) Established in 1994 Top representatives from each side Meet regularly throughout the year Discuss wide range of issues of interest to both parties Problem solving Sounding board

Next Contract Current contract expires in 2010 Recent history of “mutual interest” rather than “confrontational” bargaining Result has been long term labor stability Look to continue with the same approach going forward

Charleston’s Future Good water access Convenient rail and highway access Growing population centers: Atlanta Charlotte Room for expansion

Charleston’s Future Continued Dependent on the ability of all the various segments of the private and public partnership to work together.