Atlantic Pilotage Tariff Amendments 2020

Summary#

These are final rules that change the fees and some charge calculations in the Atlantic Pilotage Tariff Regulations, 1996. They update pilotage fees, add a pilot-boat charge for Restigouche, New Brunswick, raise fuel-consumption figures for Halifax, Nova Scotia and Saint John, New Brunswick, and schedule small percentage increases for several ports. The regulations were registered on March 25, 2020 and some parts come into force on September 1, 2020; the Canada Gazette entry was published April 15, 2020.

What it does#

• Updates many numeric tariff entries in the schedules of the Atlantic Pilotage Tariff Regulations, 1996 (new minimum charges, unit charges and basic charges in several items).
  • The Gazette text replaces a number of line items and tables with new dollar amounts for different ports and service types.
• Lowers the overall tariff in Restigouche, New Brunswick, but adds a new pilot-boat charge for that port (so a separate fee will cover the cost of hiring the boat and operator).
• Raises the budgeted fuel consumption used to calculate fuel charges by 10 L per assignment in both Halifax, Nova Scotia and Saint John, New Brunswick (the schedules set some ports’ budgeted fuel numbers at 140 litres or 110 litres where shown).
• Changes the wording for “in-transit charges” so pilots can be paid for travel time when they must meet a ship outside their pilotage area (similar to existing overcarriage language).
• Introduces percentage tariff increases that take effect at different times:
  • Immediate (on registration): Strait of Canso, Nova Scotia — 3.00% increase; Miramichi, New Brunswick — 2.00% increase.
  • On September 1, 2020: a 1.00% increase for nine ports: Placentia Bay, Newfoundland and Labrador; Sydney, Nova Scotia; Humber Arm, Newfoundland and Labrador; Saint John, New Brunswick; Bay of Exploits, Newfoundland and Labrador; St. John’s, Newfoundland and Labrador; Halifax, Nova Scotia; Holyrood, Newfoundland and Labrador; and Stephenville, Newfoundland and Labrador.
• The regulatory analysis estimates average additional annual revenue of $298,900 (constant 2020 dollars) over 10 years from these changes.
• Enforcement remains as under the Pilotage Act (including possible withholding of clearance and fines up to $5,000 for offences).

Who's affected#

• Ship owners and operators and their agents who use compulsory pilotage in Atlantic Canada.
• Private and entrepreneurial pilots and pilot-boat contractors, especially in smaller ports like Restigouche and Miramichi.
• Port authorities, terminal operators and businesses that arrange ship calls in the listed ports.
• Importers and exporters who may see small increases in shipping costs if the industry passes fees on.
• General public only indirectly — through potential small changes in shipping-related prices.

If it’s unclear: the regulations change many specific fee lines in the tariff schedules. The exact impact for any single voyage depends on the port, the service type, and the vessel’s characteristics.

Why it matters#

• The changes are meant to keep pilot services financially stable and to avoid cross-subsidies between ports. That helps maintain pilot availability and safe, timely pilotage.
• The new pilot-boat charge aims to make it economically viable for pilots and operators to serve small or remote ports (so service levels aren’t reduced).
• Small tariff increases and higher fuel-charge calculations mean modest higher costs for the shipping industry. Over time those costs can be passed to importers and exporters.
• If you operate, charter, load or unload ships in Atlantic Canada, these are the fee changes that will affect bills for pilotage services starting from registration and from September 1, 2020 for the listed ports.