2017-06662: Great Lakes Pilotage Rates-2017 Annual Review

Summary

The Coast Guard proposes to modify its calculations for hourly pilotage rates on the Great Lakes by accounting for the "weighting factor," which is a multiplier that can increase the pilotage costs for larger vessels traversing areas in the Great Lakes by a factor of up to 1.45. While the weighting factor has existed for decades, it has never been included in any of the previous ratemaking calculations. We propose to add steps to our rate-setting methodology to adjust hourly rates downwards by an amount equal to the average weighting factor, so that when the weighting factor is applied, the cost to the shippers and the corresponding revenue generated for the pilot associations will adjust to what was originally intended. We note that until a final rule is produced, the 2016 rates will stay in effect, even if a final rule is not published by the start of the 2017 season.

The agency’s own summary, as published.

What this changes

Amends 3 parts of the Code of Federal Regulations — the standing rules this notice rewrites.

• 46 CFR 401 Great Lakes Pilotage Regulations
• 46 CFR 403 Great Lakes Pilotage Uniform Accounting System
• 46 CFR 404 Great Lakes Pilotage Ratemaking