Laurentian Pilotage Tariff Increase

Summary#

This is a proposed change by the Laurentian Pilotage Authority to raise pilotage fees through amendments to the Laurentian Pilotage Tariff Regulations. The Authority is proposing a 2% increase in fees, scheduled to take effect on April 1, 2020; the notice was published on February 22, 2020. This is a proposal, not final law, and stakeholders have a 30‑day window to file objections.

What it does#

• Raises pilotage tariffs across the Authority’s schedules by 2%, effective April 1, 2020 (if finalized).
• Replaces parts of the tariff schedule, including a specific passenger/embarkation charge of $261.73 where a pilot embarks or disembarks at a non‑standard location within the compulsory pilotage area.
• Implements a small surcharge intended to cover anticipated costs related to a provision of the Pilotage Act (timing and exact amount were estimated by the Authority).
• Keeps the rest of the tariff structure (published earlier on December 21, 2019) but lowers some previously proposed increases following consultation.

Consultation notes:

• The Authority consulted with industry groups including the Shipping Federation of Canada, the Chamber of Marine Commerce, and St. Lawrence Shipoperators, and adjusted its proposal following those talks.

Who's affected#

• The shipping industry operating in and around Quebec waters served by the Laurentian Pilotage Authority — ship owners, operators, and their agents will pay the tariffs.
• Importers and exporters who receive goods moved by those vessels could see small cost increases if the shipping industry passes fees on.
• The Laurentian Pilotage Authority itself and the pilots and staff who work under its contracts are also affected, because the change is intended to help the Authority cover rising costs.
• The proposal notes that most of the Authority’s clients are foreign shippers, so the federal "small business lens" was not considered to apply.

Why it matters#

• The Authority says the increase is needed so it can remain financially self‑sufficient while keeping pilotage services safe and reliable. Without extra revenue, it says costs tied to long‑term contracts and collective agreements would threaten its finances.
• The Government’s analysis estimates the increase would generate about $1.5 million in additional revenue (constant 2020 dollars) over the next 10 years.
• For the public: steady pilotage services help keep ship traffic safe in Canadian waters. For businesses: the change is likely to be a modest operating cost for ship operators and could be passed on to shippers and buyers.
• Enforcement measures remain: unpaid pilotage charges can lead the Authority to ask a customs officer to withhold ship clearance, and there is a maximum fine of $5,000 for offences under the Pilotage Act.