(WASHINGTON) — The U.S. Coast Guard has published a final rule in the Federal Register outlining U.S. Great Lakes pilotage rates for the 2023 shipping season. The service proposes to increase the overall cost by $5.17 million or 16 percent compared to 2022.
In 2023, the Coast Guard is proposing a total workforce of 56 fully registered pilots and six apprentice pilots. The Coast Guard will be increasing annual individual pilot compensation from $399,266 to a new high of $424,398, a 16 percent increase. The final rule goes into effect on March 29.
“This rule adjusts the pilotage rates to account for changes in district operating expenses, an increase in the number of pilots, and anticipated inflation,” states the notice in the Federal Register. “These changes, when combined, result in a 16 percent net increase in pilotage costs compared to the 2022 season.”
The service had first published proposed rates and requested public comment on Aug. 30, 2022. The American Great Lakes Ports Association submitted joint comments in partnership with the Shipping Federation of Canada and the U.S. Great Lakes Shipping Association.
The new 2023 pilotage 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 criticized the Coast Guard for being insensitive to high pilotage costs, which can negatively impact the competitiveness of the Great Lakes-Seaway System.
The recent history of pilotage cost increases is detailed below:
(Year / pilots / total estimated cost / percentage over prior year)
2014 / 36 / $12,889,868
2015 / 36 / $15,451,455 / +20 percent over 2014
2016 / 37 / $19,103,678 / +24 percent over 2015
2017 / 45 / $22,326,381 / +14 percent over 2016
2018 / 49 / $25,156,442 / +12.7 percent over 2017
2019 / 51 / $27,988,185 / +11.3 percent over 2018
2020 / 52 / $28,268,030 / +1 percent over 2019
2021 / 55 / $30,332,652 / +4 percent over 2020
2022 / 60 / $32,486,995 / +7 percent over 2021
2023 / 62 / $37,659,194 / +16 percent over 2022
– American Great Lakes Ports Association
