Great Lakes Pilotage Rates-2025 Annual Review

<RULE> DEPARTMENT OF HOMELAND SECURITY <SUBAGY>Coast Guard</SUBAGY> <CFR>46 CFR Part 401</CFR> <DEPDOC>[Docket No. USCG-2024-0406]</DEPDOC> <RIN>RIN 1625-AC94</RIN> <SUBJECT>Great Lakes Pilotage Rates—2025 Annual Review</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Coast Guard, DHS. <HD SOURCE="HED">ACTION:</HD> Final rule. <SUM> <HD SOURCE="HED">SUMMARY:</HD> In accordance with the statutory provisions enacted by the Great Lakes Pilotage Act of 1960, the Coast Guard is issuing new pilotage rates for 2025. This rule adjusts the pilotage rates to account for changes in district operating expenses, an increase in the number of pilots, and anticipated inflation. These changes, when combined, result in a 7-percent net increase in pilotage costs compared to the 2024 season. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> This final rule is effective January 13, 2025. </EFFDATE> <HD SOURCE="HED">ADDRESSES:</HD> To view documents mentioned in this preamble as being available in the docket, go to <E T="03">www.regulations.gov,</E> type USCG-2024-0406 in the search box and click “Search.” Next, in the Document Type column, select “Supporting & Related Material.” <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> For information about this document, call or email Mr. Brian Rogers, Commandant, Office of Waterways and Ocean Policy—Great Lakes Pilotage Division (CG-WWM-2), Coast Guard; telephone 410-360-9260, email <E T="03">Brian.Rogers@uscg.mil.</E> </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Table of Contents for Preamble </HD> <EXTRACT> <FP SOURCE="FP-2">I. Abbreviations</FP> <FP SOURCE="FP-2">II. Basis and Purpose, and Regulatory History</FP> <FP SOURCE="FP-2">III. Background</FP> <FP SOURCE="FP-2">IV. Final Pilotage Rates for 2025</FP> <FP SOURCE="FP-2">V. Discussion of Comments and Changes</FP> <FP SOURCE="FP-2">VI. Summary of the Ratemaking Methodology</FP> <FP SOURCE="FP-2">VII. Discussion of the Rate Adjustments</FP> <FP SOURCE="FP1-2">District One</FP> <FP SOURCE="FP1-2">A. Step 1: Recognize Previous Operating Expenses</FP> <FP SOURCE="FP1-2">B. Step 2: Project Operating Expenses, Adjusting for Inflation or Deflation</FP> <FP SOURCE="FP1-2">C. Step 3: Estimate Number of Registered Pilots and Apprentice Pilots</FP> <FP SOURCE="FP1-2">D. Step 4: Determine Target Pilot Compensation Benchmark and Apprentice Pilot Wage Benchmark</FP> <FP SOURCE="FP1-2">E. Step 5: Project Working Capital Fund</FP> <FP SOURCE="FP1-2">F. Step 6: Project Needed Revenue</FP> <FP SOURCE="FP1-2">G. Step 7: Calculate Initial Base Rates</FP> <FP SOURCE="FP1-2">H. Step 8: Calculate Average Weighting Factors by Area</FP> <FP SOURCE="FP1-2">I. Step 9: Calculate Revised Base Rates</FP> <FP SOURCE="FP1-2">J. Step 10: Review and Finalize Rates</FP> <FP SOURCE="FP1-2">District Two</FP> <FP SOURCE="FP1-2">A. Step 1: Recognize Previous Operating Expenses</FP> <FP SOURCE="FP1-2">B. Step 2: Project Operating Expenses, Adjusting for Inflation or Deflation</FP> <FP SOURCE="FP1-2">C. Step 3: Estimate Number of Registered Pilots and Apprentice Pilots</FP> <FP SOURCE="FP1-2">D. Step 4: Determine Target Pilot Compensation Benchmark and Apprentice Pilot Wage Benchmark</FP> <FP SOURCE="FP1-2">E. Step 5: Project Working Capital Fund</FP> <FP SOURCE="FP1-2">F. Step 6: Project Needed Revenue</FP> <FP SOURCE="FP1-2">G. Step 7: Calculate Initial Base Rates</FP> <FP SOURCE="FP1-2">H. Step 8: Calculate Average Weighting Factors by Area</FP> <FP SOURCE="FP1-2">I. Step 9: Calculate Revised Base Rates</FP> <FP SOURCE="FP1-2">J. Step 10: Review and Finalize Rates</FP> <FP SOURCE="FP1-2">District Three</FP> <FP SOURCE="FP1-2">A. Step 1: Recognize Previous Operating Expenses</FP> <FP SOURCE="FP1-2">B. Step 2: Project Operating Expenses, Adjusting for Inflation or Deflation</FP> <FP SOURCE="FP1-2">C. Step 3: Estimate Number of Registered Pilots and Apprentice Pilots</FP> <FP SOURCE="FP1-2">D. Step 4: Determine Target Pilot Compensation Benchmark and Apprentice Pilot Wage Benchmark</FP> <FP SOURCE="FP1-2">E. Step 5: Project Working Capital Fund</FP> <FP SOURCE="FP1-2">F. Step 6: Project Needed Revenue</FP> <FP SOURCE="FP1-2">G. Step 7: Calculate Initial Base Rates</FP> <FP SOURCE="FP1-2">H. Step 8: Calculate Average Weighting Factors by Area</FP> <FP SOURCE="FP1-2">I. Step 9: Calculate Revised Base Rates</FP> <FP SOURCE="FP1-2">J. Step 10: Review and Finalize Rates</FP> <FP SOURCE="FP-2">VIII. Regulatory Analyses</FP> <FP SOURCE="FP1-2">A. Regulatory Planning and Review</FP> <FP SOURCE="FP1-2">B. Small Entities</FP> <FP SOURCE="FP1-2">C. Assistance for Small Entities</FP> <FP SOURCE="FP1-2">D. Collection of Information</FP> <FP SOURCE="FP1-2">E. Federalism</FP> <FP SOURCE="FP1-2">F. Unfunded Mandates</FP> <FP SOURCE="FP1-2">G. Taking of Private Property</FP> <FP SOURCE="FP1-2">H. Civil Justice Reform</FP> <FP SOURCE="FP1-2">I. Protection of Children</FP> <FP SOURCE="FP1-2">J. Indian Tribal Governments</FP> <FP SOURCE="FP1-2">K. Energy Effects</FP> <FP SOURCE="FP1-2">L. Technical Standards</FP> <FP SOURCE="FP1-2">M. Environment</FP> </EXTRACT> <HD SOURCE="HD1">I. Abbreviations</HD> <EXTRACT> <FP SOURCE="FP-1">2023 final rule Great Lakes Pilotage Rates—2023 Annual Ratemaking and Review of Methodology</FP> <FP SOURCE="FP-1">2024 final rule Great Lakes Pilotage Rates—2024 Annual Review</FP> <FP SOURCE="FP-1">2025 Ratemaking NPRM Great Lakes Pilotage Rates—2025 Annual Review notice of proposed rulemaking</FP> <FP SOURCE="FP-1">APA American Pilots' Association</FP> <FP SOURCE="FP-1">BLS Bureau of Labor Statistics</FP> <FP SOURCE="FP-1">CFR Code of Federal Regulations</FP> <FP SOURCE="FP-1">CPI Consumer Price Index</FP> <FP SOURCE="FP-1">DHS Department of Homeland Security</FP> <FP SOURCE="FP-1">Director U.S. Coast Guard's Director of the Great Lakes Pilotage</FP> <FP SOURCE="FP-1">ECI Employment Cost Index</FP> <FP SOURCE="FP-1">FOMC Federal Open Market Committee</FP> <FP SOURCE="FP-1">FR Federal Register</FP> <FP SOURCE="FP-1">GLPAC Great Lakes Pilotage Advisory Committee</FP> <FP SOURCE="FP-1">LPA Lakes Pilots Association</FP> <FP SOURCE="FP-1">MOU Memorandum of Understanding</FP> <FP SOURCE="FP-1">NAICS North American Industry Classification System</FP> <FP SOURCE="FP-1">NPRM Notice of proposed rulemaking</FP> <FP SOURCE="FP-1">OMB Office of Management and Budget</FP> <FP SOURCE="FP-1">PCE Personal Consumption Expenditures</FP> <FP SOURCE="FP-1">§ Section </FP> <FP SOURCE="FP-1">SBA Small Business Administration</FP> <FP SOURCE="FP-1">SLSPA Saint Lawrence Seaway Pilots Association</FP> <FP SOURCE="FP-1">U.S.C. United States Code</FP> <FP SOURCE="FP-1">WGLPA Western Great Lakes Pilots Association</FP> </EXTRACT> <HD SOURCE="HD1">II. Basis and Purpose, and Regulatory History</HD> The legal basis of this rulemaking is 46 U.S.C. Chapter 93, <SU>1</SU> <FTREF/> which requires foreign merchant vessels and United States vessels operating “on register”—meaning United States vessels engaged in foreign trade—to use United States or Canadian pilots while transiting the United States waters of the St. Lawrence Seaway and the Great Lakes system. <SU>2</SU> <FTREF/> For U.S. Great Lakes Pilots, the statute requires the Secretary to “prescribe by regulation rates and charges for pilotage services, giving consideration to the public interest and the costs of providing the services.” Title 46 of the U.S.C. 9303(f) also requires that rates be established or reviewed and adjusted each year, no later than March 1. The Secretary's duties and authority under 46 U.S.C. Chapter 93 have generally been delegated to the Coast Guard. <SU>3</SU> <FTREF/> <FTNT> <SU>1</SU>  46 U.S.C. 9301-9308. </FTNT> <FTNT> <SU>2</SU>  46 U.S.C. 9302(a)(1). </FTNT> <FTNT> <SU>3</SU>  Department of Homeland Security Delegation No. 00170.1 (II)(92)(f), Revision No. 01.4. The Secretary retains the authority under Section 9307 to establish, and appoint members to, a Great Lakes Pilotage Advisory Committee. </FTNT> The purpose of this final rule is to issue new pilotage rates for 2025 by revising a base rate established in 2023. The Coast Guard believes that the new rates will continue to promote our goal, as outlined in 46 CFR 404.1(a), to promote safe, efficient, and reliable pilotage service in the Great Lakes by generating sufficient revenue for each pilot association, to reimburse its necessary and reasonable operating expenses, fairly compensate trained and rested Pilots, and provide appropriate funds to use for improvements. <HD SOURCE="HD1">III. Background</HD> Rates are the foundation for safe, efficient, and reliable pilotage service to facilitate maritime commerce, protect the marine environment, and comply with National Transportation Safety Board recommendations regarding staffing and pilot fatigue. The pilotage rates for the 2025 season range from $440 to $986 per pilot hour, depending on which of the specific six areas pilotage service is provided, and are paid by shippers to the pilot associations. There are three American pilotage districts on the Great Lakes, each represented by a pilot association. <SU>4</SU> <FTREF/> Each pilotage district is further divided into “designated” and “undesignated” areas. Designated areas, classified as such by Presidential Proclamation, are waters in which pilots must direct the navigation of vessels at all times. <SU>5</SU> <FTREF/> Undesignated areas are open bodies of water where pilots must only “be on board and available to direct the navigation of the vessel” at the discretion of the vessel master. <SU>6</SU> <FTREF/> For these reasons, pilotage rates in designated areas can be significantly higher than those in undesignated areas. <FTNT> <SU>4</SU>  The Saint Lawrence Seaway Pilots Association provides pilotage ser ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 149k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━