Pilotage Fees Set by Authorities

Summary#

This Order (SI/2020-40) set June 4, 2020 as the day certain parts of the Budget Implementation Act, 2019, No. 1 came into force. Those parts bring changes to the Pilotage Act so pilotage fees can be set more quickly and flexibly, while keeping rules to protect users.

What it does#

• Brings into force subsection 225(5) and sections 238, 247, 248 and 257 of the Budget Implementation Act, 2019, No. 1, which amend the Pilotage Act.
• Lets pilotage fees be set by internal decisions (resolutions) of pilotage authorities instead of by regulation. Resolutions about fees are not treated as statutory instruments under the Statutory Instruments Act.
• Requires fees to follow new charging principles (see section 33.2(1)):
  • Authorities must use a defined charge-setting methodology and make it public.
  • Fees must be non-discriminatory, fair and reasonable.
  • Revenues should not exceed current and future financial needs.
• Lists the financial items authorities must consider when setting fees (see section 33.2(2)), such as operations, maintenance and administration costs.
• Gives users a way to challenge a fee: they can file an objection with the Canadian Transportation Agency within 90 days after a proposed change is posted. If the Agency finds the objection valid, it can order fixes, cancel the change, restore the old fee, or require refunds.
• Makes minor wording and definition updates in the Pilotage Act for clarity and consistency (for example, adding a definition for “Agency” meaning the Canadian Transportation Agency and for “pilotage charge”).

Who's affected#

• The four federal pilotage corporations: the Atlantic Pilotage Authority, the Laurentian Pilotage Authority, the Great Lakes Pilotage Authority, and the Pacific Pilotage Authority.
• Shipping companies, ship operators and vessel owners who pay pilotage fees in Canada’s compulsory pilotage areas (coasts, the Great Lakes and the St. Lawrence River).
• Marine pilots and pilotage certificate holders, who perform over 50,000 assignments annually and whose service operations are governed by the Authorities.
• Ports, shippers, and others who use marine shipping routes.
• Indigenous groups and other stakeholders who were consulted during the Pilotage Act review may also be affected by changes to local charges or service arrangements.

If it is unclear whether a specific person or business is affected, they should check whether they operate in a compulsory pilotage area or pay pilotage fees.

Why it matters#

• Pilotage authorities can adjust fees more quickly. That helps them stay financially stable when shipping traffic changes suddenly.
• Faster fee changes may mean shipping costs can change without a full regulatory process. That could affect shipping bills and planning for operators and shippers.
• New rules aim to keep the process transparent and fair: authorities must publish their methodology, and users have a 90‑day window to challenge changes with the Canadian Transportation Agency.
• The changes are meant to support safer navigation and protect the environment by keeping pilotage services reliable and responsive.