(WASHINGTON) — The U.S. Coast Guard has announced in the Federal Register the proposed establishment of new Great Lakes pilotage rates for the 2024 shipping season.
In accordance with the statutory provisions enacted by the Great Lakes Pilotage Act of 1960, the Coast Guard is proposing new pilotage rates for the 2024 shipping season. The Coast Guard estimates that this proposed rule would result in approximately a 5 percent increase in operating costs compared to the 2023 season.
Based on the ratemaking model discussed in the proposed rule, the Coast Guard is proposing the rates shown in Table 1 below. The Coast Guard is accepting comments until Sept. 15, with guidelines for doing so in the Federal Register.
The following is a response to the announcement by the American Great Lakes Ports Association:
The new rates seek to generate revenue for each of the three U.S. Great Lakes pilot associations by implementing hourly charges for pilotage services according to geographic area. Pilotage rates are paid by vessel operators serving Great Lakes ports.
Although pilotage is a necessary service for safe navigation, Great Lakes ports have historically criticized the Coast Guard for being insensitive to high pilotage costs, which can negatively impact the competitiveness of maritime commerce on the Great Lakes St. Lawrence Seaway system.
The Coast Guard proposes to increase the overall cost of U.S. Great Lakes pilotage in 2024 compared to 2023 by $1.9 million or 5 percent. In 2024, the Coast Guard is proposing a total workforce of 56 fully registered pilots and seven apprentice pilots. The Coast Guard will be increasing annual individual pilot compensation from $424,318 to a new high of $442,403 – a 4.2 percent increase.
The recent history of pilotage cost increases is detailed below.
(Year / Pilot numbers / Total estimate cost / Percentage over prior year)
2014 / 36 / $12,889,868
2015 / 36 / $15,451,455 / +20% over 2014
2016 / 37 / $19,103,678 / +24% over 2015
2017 / 45 / $22,326,381 / +14% over 2016
2018 / 49 / $25,156,442 / +12.7% over 2017
2019 / 51 / $27,988,185 / +11.3% over 2018
2020 / 52 / $28,268,030 / +1% over 2019
2021 / 55 / $30,332,652 / +4% over 2020
2022 / 60 / $32,486,995 / +7% over 2021
2023 / 62 / $37,659,194 / +16% over 2022
2024 / 63 / $39,573,633 / + 5% over 2023 (proposed)
