An Overview of U.S. Great Lakes Proposed Rule
The United States Coast Guard has taken to the Federal Register, announcing its intention to revise the pilotage rates for the U.S. Great Lakes for the 2024 shipping season. This is an administrative move that aims to accrue more income for the three U.S. Great Lakes pilot associations. These revenues are raised via the implementation of varying hourly rates for pilotage services, with the rates being dependent on the geographical area.
These charges are typically footed by operators of vessels that navigate the Great Lakes ports. In a significant move, the Coast Guard’s proposal entails a $1.9 million increase in the overall U.S. Great Lakes pilotage costs equate to a boost of around 5% relative to the rates applicable in 2023.
The Coast Guard’s Proposed Workforce for 2024
As plans for the future take shape, the USCG in specific intends to field a force of 56 experienced and fully registered pilots, bolstered by a group of seven apprentice pilots for the upcoming shipping season. This level of workforce will help ensure the necessary manpower to meet the pilotage needs of the many vessels that traverse the Great Lakes annually.
Changes in Pilot Compensation
The proposed revisions also encapsulate changes in the annual compensation of individual pilots. The Coast Guard has decided to elevate pilot compensation from $424,318 to $442,403. This is a substantial increase of about 4.2% which is likely to be well-received within the pilot community.
Impact on the Maritime Commerce
Despite the necessity of pilotage for safe navigation, the Coast Guard has previously been called out by Great Lakes ports for allegedly turning a blind eye to the high costs of pilotage. This criticism stems from the belief that excessive pilotage costs have the power to undermine the competitive edge of maritime commerce on the Great Lakes St. Lawrence Seaway system.
The Economic Influence of the Great Lakes Seaway
Focusing on 2022, Great Lakes Seaway shipping played a crucial role in sustaining 241,286 jobs on both US and Canadian shores. The US economy accounted for 147,350 of these jobs, while Canada played host to 93,936. This active maritime commerce network infused $17.8 billion into the economies via wages for workers.
The volume of cargo transport on the navigation system was substantial, with 135.7 million tons of freight transported. The monetary influence of maritime-based economic activity was also considerable, as it resulted in tax revenues of $6.3 billion. This staggering economic impact highlights the vital role that maritime enterprises play within the Great Lakes Seaway system.
