Atlantic Pilotage Tariff Increases and Adjustments

Summary#

These are proposed changes to the Regulations Amending the Atlantic Pilotage Tariff Regulations, 1996 put forward by the Atlantic Pilotage Authority. The proposal would raise some pilotage fees, add a pilot-boat charge in Restigouche, New Brunswick, and adjust fuel-charge calculations for pilot boats in Halifax, Nova Scotia and Saint John, New Brunswick. The proposal is at the consultation stage, not yet final.

What it does#

• Introduces a new pilot-boat charge in Restigouche, New Brunswick, and lowers some basic/minimum charges there to offset that new charge.
• Changes the wording for “In-Transit Charges” so the Authority can recover pilot travel time when a pilot must meet a vessel outside the pilotage area (similar to existing overcarriage recovery).
• Raises the budgeted fuel consumption used to calculate pilot-boat fuel charges in Halifax, Nova Scotia and Saint John, New Brunswick by 10 L per assignment (reflected in the regulations’ schedules).
• Raises port-by-port pilotage tariffs for one-way trips, through trips, and moveages:
  • Immediate (on registration) increases: Strait of Canso, Nova Scotia by 3.00% and Miramichi, New Brunswick by 2.00%.
  • Increases effective April 1, 2020 of 1.00% 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.
• Updates many numeric tariff and schedule figures in the regulations to reflect the above changes.
• The proposal notes it was developed after consultations and aims to cover additional costs tied to the recent amendment to the Pilotage Act (specifically section 37.1).

Note: This is a proposed regulation. The notice allows interested parties to file objections within 30 days of the Canada Gazette publication.

Who's affected#

• Shipping companies and vessel operators that use pilotage services in Atlantic Canada.
• Local ship agents, port authorities, terminal operators, and pilots (including entrepreneurial pilots and pilot-boat contractors).
• Specifically named ports above (e.g., Restigouche, Halifax, Saint John, Strait of Canso, Miramichi, and nine ports with the April 1, 2020 increases).
• The Atlantic Pilotage Authority itself (revenue and cost-recovery), and indirectly importers and exporters if shipping companies pass on higher costs.

If it is unclear who will bear the final cost, the proposal notes the shipping industry could pass some charges on to importers/exporters.

Why it matters#

• Small but steady revenue increase: the Authority estimates additional annual revenue of about $313,000 (constant 2020 dollars) from these changes, with a present-value total over 10 years of about $2,198,381. That helps the Authority meet operating costs and new administrative costs tied to section 37.1 of the Pilotage Act.
• The changes aim to keep pilot services available and attract pilots and pilot-boat operators to less-active ports (for example, by adding the Restigouche pilot-boat charge).
• For ship operators, the changes mean modestly higher pilotage costs in several ports. The Authority says the increases are unlikely to affect overall shipping destinations or the competitiveness of the industry.
• Because this is a proposed rule, stakeholders had consultation opportunities and can file formal objections within 30 days of the Gazette notice.