Laurentian Pilotage Tariff Increase
Canada Gazette, Part I, Volume 153, Number 51: Regulations Amending the Laurentian Pilotage Tariff Regulations
The Laurentian Pilotage Authority proposed raising pilotage tariffs by 2.70% and adding a new $39.64 administration charge per pilot assignment to cover costs under section 37.1 of the Pilotage Act. The notice was published December 21, 2019; the changes are proposed to take effect April 1, 2020, and interested parties had 30 days to file objections.
- Published
- December 21, 2019
- Department
- Unavailable
- Section
- REGULATORY IMPACT ANALYSIS STATEMENT
- Comment deadline
- January 20, 2020
- Effective date
- April 1, 2020
- Publication part
- Part I
Summary
Summary#
This is a proposal from the Laurentian Pilotage Authority to change the Laurentian Pilotage Tariff Regulations. If approved, tariffs would rise by 2.70% and a new per-assignment charge of $39.64 would be added, starting April 1, 2020. The notice was published on December 21, 2019 and interested parties have 30 days to object.
What it does#
- Raises pilotage tariff rates by 2.70%, effective April 1, 2020, if the regulations are approved.
- Adds a new administration charge of $39.64 for each pilot assignment. That fee is meant to cover costs the Authority expects under section 37.1 of the Pilotage Act.
- Updates the tariff schedule (Schedule 2) with revised service fees. For example, the charge when a pilot must embark or disembark away from a boarding station is set at $263.53 in the proposed text.
- Notes that the Authority expects to use the extra revenue to pay amounts anticipated under the new Act provision, possibly within the first quarter of 2021.
- Warns that unpaid pilotage charges can lead to customs clearance being withheld and fines up to $5,000.
Who's affected#
- Shipping companies and foreign shippers using pilotage services in the Laurentian area.
- Pilots and pilot corporations (their long-term contracts are a reason for the increase).
- Importers and exporters who may see slightly higher shipping costs if the industry passes on the charge.
- Industry groups consulted: Shipping Federation of Canada, Chamber of Marine Commerce, and St. Lawrence Shipoperators.
- Small businesses are not expected to be directly affected, since most clients are not small businesses (the Authority says the small business lens does not apply).
Why it matters#
- The change is meant to keep the Laurentian Pilotage Authority financially sustainable so it can continue providing pilotage services that help keep shipping safe.
- The Authority estimates the rate changes would generate about $2.6 million in additional revenue over a 10‑year period (2020–2029).
- For shippers and customers, the impact is described as modest but tangible: small increases in pilotage fees that could be passed on to importers and exporters.
- The measure responds to rising costs from long-term contracts, collective agreements, and new administrative costs under the Pilotage Act. The timing and final amount of those Act-related payments remain uncertain.
Key topics
Source: Canada Gazette