Coast Guard Slashes Fees for Great Lakes Ship Guides
Published Date: 2/17/2026
Rule
Summary
Starting March 19, 2026, Great Lakes shipping companies will enjoy about a 6% cut in pilotage costs thanks to new rates set by the Coast Guard. They also tweaked how they calculate these rates by dropping one step to keep things simpler and fairer. This means smoother sailing for ships and better support for the supply chain in the Great Lakes region!
Analyzed Economic Effects
5 provisions identified: 4 benefits, 0 costs, 1 mixed.
Pilot Pay Benchmark Set at $481,642
The Coast Guard set the 2026 target yearly base compensation for each United States Registered Pilot on the Great Lakes at $481,642, an increase of $17,325 (3.73 percent) over 2025, and set the Apprentice Pilot wage benchmark at 36 percent of that amount, or $173,391. These compensation benchmarks are used to calculate revenue needs and rates for the 2026 season.
About 6% Cut in Pilotage Costs
If you operate or pay for oceangoing vessel pilotage on the Great Lakes, the Coast Guard set new 2026 rates that reduce operating costs by about 6 percent compared to 2025, resulting in an estimated net decrease of $2,708,485 in annual payments by shippers and vessels. This change is effective March 19, 2026 and is expected to apply to the average 258 oceangoing vessels that transit the Great Lakes each year.
New Hourly Pilotage Rates By Area
The Coast Guard set 2026 hourly base pilotage rates for six Great Lakes areas effective March 19, 2026; rates range from $382 to $978 per pilot hour. The final 2026 rates by area are: St. Lawrence River $978, Lake Ontario $623, Southeast Shoal to Port Huron $681, Lake Erie $555, St. Marys River $868, and Lakes Huron/Michigan/Superior $382.
Working Capital Fund Step Removed
The Coast Guard removed Step 5 of the ratemaking methodology, which calculated a required working capital fund and eliminated the related requirement that pilotage associations deposit a computed amount into that fund. The Coast Guard will continue to monitor associations' finances and may authorize time-limited surcharges for extraordinary capital investments, with any surplus surcharge revenue deducted from Step 1 expenses.
Apprentice Pilot Funding Adjusted by District
For the 2026 shipping season the Coast Guard funds a total of 7 Apprentice Pilots across the three districts: District One will be funded for 2 Apprentice Pilots, District Two 0, and District Three 5. These staffing decisions were revised in response to public comments and are used in the ratemaking calculations.
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Key Dates
Department and Agencies
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