Today, the U.S. Coast Guard (USCG) published a Final Rule in the Federal Register outlining U.S. Great Lakes pilotage rates for the 2023 shipping season. The agency had first published proposed rates and requested public comment on August 30, 2022. AGLPA 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 Coast Guard proposes to increase the overall cost of U.S. Great Lakes pilotage in 2023 compared to 2022 by $5.17 million or 16 percent. In 2023, the USCG is proposing a total workforce of 56 fully registered pilots and 6 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 recent history of pilotage cost increases is detailed below.
(year / pilot #s / total est cost / % 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
