The cost of pilotage services will rise by 16 percent in 2023, a change that will add about $5.2 million in overall cost to ocean carriers, according to the U.S. Coast Guard.
The service published the new rates recently in the Federal Register. They will take effect on March 29, in time for the 2023 shipping season.
The new rates will raise average compensation for individual pilots from $399,266 a year to a new high of $424,398 — an increase of about 6 percent. It also contemplates a total workforce of 56 fully registered pilots and six apprentices.
“This rule adjusts the pilotage rates to account for changes in district operating expenses, an increase in the number of pilots, and anticipated inflation,” the notice in the Federal Register states. “These changes, when combined, result in a 16 percent net increase in pilotage costs compared to the 2022 season.”
The Coast Guard proposed new pilotage rates last fall that were slightly less than the final approved rates.
Great Lakes ports and shipping interests have criticized the Coast Guard for being insensitive to high pilotage costs, which they say can harm the competitiveness of the Great Lakes-Seaway System.
Great Lakes pilots are primarily used by foreign-flagged, deepwater ships known as “salties.” Each year, around 275 or so of these vessels call on American ports within the Great Lakes region.