Great Lakes Pilotage Tariff Changes

Summary#

The Regulations Amending the Great Lakes Pilotage Tariff Regulations (SOR/2020-59) change the fees that the Great Lakes Pilotage Authority charges for pilot services in the Great Lakes. Most of the new charges took effect on April 1, 2020, while a new administration fee comes into force on July 1, 2020.

What it does#

• Raises many pilotage rates across the Great Lakes by about 3% (general increase).
• Extends the apprentice pilot training surcharge of 5% until December 31, 2021.
• Adds a new pilot transfer (pilot boat) charge at Cape Vincent of $325 per transfer.
• Adds a new charge of $2,750 when a pilot stays on board beyond their assignment to continue the voyage (overtime retention).
• Standardizes docking/undocking and stoppage charges at $1,200 where they were inconsistent or missing.
• Increases the fee for pilot changes at St. Lambert and Beauharnois Locks to $137 per transfer.
• Formalizes the long-standing practice of recovering pilot travel costs when pilots must embark or disembark away from designated points.
• Adds an administration charge of $25 per pilot assignment to help cover costs under the Pilotage Act.
• Keeps or adjusts several hourly, daily and short-notice fees (for example, delays and short-notice service) including an added short-notice charge of $3,821 when services are requested with less than 12 hours notice.

Who's affected#

• Ship owners and operators who use compulsory pilotage in the Great Lakes. The Authority says about 80–85% of its clients are represented by the Shipping Federation of Canada and about 15–20% by the Chamber of Marine Commerce.
• Foreign-flagged vessels that must take pilots. (Many small Canadian shippers hire pilotage certificate holders instead and are usually not affected.)
• Pilots and pilot service providers, who are directly involved in transfers, overtime, and travel arrangements.
• The St. Lawrence Seaway Pilots Association and the U.S. Coast Guard are indirectly involved because of the Cape Vincent pilot boat arrangements.

Why it matters#

• It raises costs for companies that move ships through the Great Lakes. The Authority estimated the average annual cost to industry at about $3.1 million.
• The Authority says the increases are needed so it can be financially self-sustaining, eliminate an accumulated deficit, and build a reserve to handle future losses.
• The rule aims to reduce vessel delays and support pilot safety by funding more training and by compensating pilots for overtime and travel. It also formalizes charges that had been billed informally.
• If you work in shipping, logistics, or maritime operations on the Great Lakes, these changes can affect your bills, scheduling and decisions about when and how to move ships.