Laurentian Pilotage Tariff Changes 2020

Summary#

The Laurentian Pilotage Authority has updated the Laurentian Pilotage Tariff Regulations. Tariffs rise by 2%, and a new per-assignment charge of $39.64 is added to cover administration costs under the Pilotage Act. Most changes took effect on April 1, 2020, while the administration charge starts on July 6, 2020.

What it does#

• Increases pilotage rates across the board by 2%.
• Adds a new Pilotage Act administration charge of $39.64 per pilot assignment. This is intended to cover costs the Authority must pay to the Minister of Transport under the Pilotage Act.
• Sets a specific charge of $261.73 when a pilot must get on or off a ship at a place inside the compulsory pilotage area but not at a regular pilot boarding station.
• Clarifies that if a pilot must embark or disembark outside the compulsory pilotage area, the pilot’s reasonable travel and other expenses are payable.
• Replaces the tariff schedule (Schedule 2) with updated fees and time-based charges for many pilotage services.
• Enforcement note: the Authority can ask that a customs officer not clear a ship with unpaid pilotage charges, and an offence can carry a fine up to $5,000.

Who's affected#

• Shipping companies, vessel owners and operators, and their agents who use pilotage services in the Laurentian pilotage area.
• Importers and exporters who may see slightly higher shipping costs if those businesses pass on the increases.
• The Laurentian Pilotage Authority and the pilots who work under its contracts, because the changes fund ongoing operations and administration.
• The Shipping Federation of Canada and other industry groups were involved in consultations and some raised objections to the new administration charge.

If you sail or ship goods in the St. Lawrence/Quebec pilotage area, these changes are likely relevant to you.

Why it matters#

• The small per-assignment charge ($39.64) and the 2% rate increase are meant to keep pilotage services funded so the Authority can keep operating without breaking contracts or selling essential assets.
• Reliable pilotage helps keep navigation safe in busy waters; without enough revenue the Authority says service quality or staffing could be at risk.
• For shippers and businesses, the extra cost is modest but recurrent; over 10 years the Authority estimates the changes could bring in about $2.26 million in additional revenue (in constant 2020 dollars).
• The administration charge was controversial with industry representatives; the dispute could affect later regulatory or review steps, but the charge is part of the final regulation and starts on July 6, 2020.