The US Coast Guard announced that it will establish new base pilotage rates and surcharges for the 2018 shipping season. Additionally, USCG is making several changes to the Great Lakes pilotage ratemaking methodology.
The above mentioned changes include:
- Creating clear description between the Coast Guard’s annual rate adjustments and the Coast Guard’s requirement to conduct a full ratemaking every five years;
- The adoption of a revised compensation benchmark;
- Reorganization of the text regarding the staffing model for calculating the number of pilots needed;
- Certain editorial changes.
In this rule, USCG is changing the ratemaking methodology and establishes new pilotage rates for 2018 based on the new methodology. The modifications to the ratemaking methodology consist of a new compensation benchmark, updates and revisions to annually adjusted figures such as inflation rates and traffic volumes, organizational changes, and clarifications.
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Moreover, the Coast Guard will set up a new compensation benchmark based on input from the American Maritime Officers Union 2015 contracts. Also, the inflation adjustment index has changed from the Consumer Price Index (CPI) to the Employment Cost Index (ECI).
In addition, the Coast Guard will moving the requirements of the staffing model from their current location in title 46 of the Code of Federal Regulations (CFR) 404.103, to the general regulations governing pilotage in 46 CFR 401.220(a).
Finally, USCG will set separate regulatory paragraphs detailing the differences between how an annual adjustment of the pilotage rate is undertaken and a full reassessment of the rates, which must be undertaken once every five years.
The new rates, effective July 5, 2018, are shown below
