Great Lakes Pilotage Tariff Increases

Summary#

This is a proposed set of changes called the Regulations Amending the Great Lakes Pilotage Tariff Regulations that would raise fees and add new surcharges for ship pilotage in the Great Lakes. The changes are put forward by the Great Lakes Pilotage Authority to bring in more revenue, eliminate an accumulated deficit and pay new administrative costs under the Pilotage Act. The proposal aimed to take effect in 2020 (the paper mentions April 1, 2020, but the regulatory text also says the rules would come into force on registration, so the exact timing is unclear).

What it does#

• Raises most pilotage rates by 3.0% across all districts.
• Extends the existing 5.0% apprentice pilot training surcharge until December 31, 2021.
• Adds a new pilot-boat charge of $325 for each embarkation/disembarkation at Cape Vincent, New York, to help cover the cost of a new boat.
• Adds a new overtime charge of $2,750 when a pilot is not relieved and must remain on board to continue a transit beyond their original assignment.
• Standardizes docking/undocking and stoppage charges at $1,200 across districts and introduces those charges where they were missing.
• Increases the pilot-change fee at the St. Lambert and Beauharnois Locks from $135 to $137 per pilot transfer.
• Formalizes the long-standing practice of charging for pilot travel costs (travel expenses are recoverable when a pilot embarks or disembarks away from designated change points; different rules apply in the winter period).
• Adds a flat surcharge of $25 per assignment to help cover a new federal administrative charge under section 37.1 of the Pilotage Act.
• The Authority estimates the annualized cost to industry would be about $1.8 million, and a present-value cost over 2020–2029 of about $30.6 million.

Who's affected#

• The main customers are foreign and domestic shipping operators who must use pilots in compulsory areas:
  • Shipping Federation of Canada members (the Authority says this group represents about 80–85% of its clientele).
  • Chamber of Marine Commerce members (representing much of the Canadian-flag fleet that uses pilot services).
• Individual ship owners and operators who pay pilotage fees will directly see the increases and new charges.
• Indirectly, shippers and possibly consumers could face small cost increases if shipping operators pass on higher fees.
• Pilots and pilot associations are affected too because the changes fund pilot training, equipment (pilot boat) and overtime pay.
• The proposal says all costs would be borne by users of pilotage services; the paper notes stakeholders did not all agree (the Shipping Federation of Canada criticized the size and timing of the increases).

Why it matters#

• These changes are meant to make the pilotage authority financially self-sufficient, stop an accumulated deficit, and create a reserve for future shortfalls.
• Money raised would be used to recruit and train more pilots, buy or help pay for a new pilot boat at Cape Vincent, and compensate pilots for overtime — actions the Authority says should reduce vessel delays and improve safety.
• For ship operators the changes mean higher operating costs and new specific fees (overtime, travel, pilot-boat charge), which could affect scheduling and voyage planning.
• The proposal is not final law yet; it was published for objections and consultation and contains some timing uncertainty about when the new rules would take effect.