Coast Guard proposes 2024 Great Lakes pilotage rates

Today, the U.S. Coast Guard (USCG) published a Proposed Rule in the Federal Register outlining U.S. Great Lakes pilotage rates for the 2024 shipping season.

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 USCG is proposing a total workforce of 56 fully registered pilots and 7 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 #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

2024 / 63 / $39,573,633 / + 4% over 2023 (proposed)