The International Maritime Pilots’ Association said deregulation and competition in maritime pilotage increase costs, weaken safety and efficiency, and expose the public and the shipping industry to avoidable risk.
According to IMPA, some jurisdictions assume that competition can deliver a better service at a lower cost. The association said that view is not supported by the evidence it cited and warned that the impact of deregulation has been negative where such systems have been introduced.
The association said that in one jurisdiction where competition in pilotage service delivery was introduced, pilotage fees have doubled since 2018, while the incident rate per port call is 41 times the international average. In another jurisdiction, 60% of maritime safety incidents under pilotage occur in areas where providers compete with each other.
IMPA also said that in another case the main provider’s efficiency has fallen by 9%, reducing the service’s ability to meet total demand. In a separate example, the association said deregulation, government revenue-taking, and weaker training and licensing standards have diluted the service to the point that it is difficult to regard it as pilotage.
Captain Simon Pelletier, president of IMPA, said governments need to maintain the right framework if they want to secure the economic, social and environmental benefits of maritime pilotage. He said the small number of jurisdictions that adopted deregulation and competition should change course.
IMPA pointed to jurisdictions that protect pilotage from competition. The association referred to safeguards in the European Union’s Port Services Regulation and said Alaska and Florida explicitly prohibit the practice because of the threat it poses to the public interest.
The association added that when several operators must duplicate pilots, pilot boats, training programmes and facilities while trying to recover costs from a divided market, costs rise rather than fall. It also said insufficient profit can lead to under-provision of pilotage, forcing government intervention, while abuse of market power can require further intervention.
IMPA also cited a 2023 economic study that found every $1 invested in a well-regulated pilotage system returns $60 in safety and efficiency benefits. Established in 1970, the not-for-profit organisation represents pilots’ organisations in more than 50 countries and a professional community of more than 8,000 maritime pilots.
