The State Board of Pilot Commissioners voted to recommend an increase in the rates and surcharges paid to the pilots who guide cargo ships in and out of the San Francisco Bay.
By Patrick Burnson
Published: June, 2011
The State Board of Pilot Commissioners voted to recommend an increase in the rates and surcharges paid to the pilots who guide cargo ships in and out of the San Francisco Bay. This action by the Board will be forwarded to the state Legislature, which must approve the increases before they become effective.
San Francisco Bar Pilots made an average individual income of nearly $400,000 in 2010. This proposed rate increase, coupled with predicted growth in shipping, will result in a projected income of around $530,000 per pilot by 2015.
Prior to the hearing, the San Francisco Bar Pilots Association submitted a proposal to the Board of Pilot Commissioners requesting a rate increase of 22 percent over four years. This request would have meant that the pilots who work in the San Francisco Bay would have pushed their projected income to more than $600,000 by 2015.
We thank the Commission for recognizing that while our rates have remained unchanged for the past five years, our costs have gone up, said Captain Bruce Horton, president of the San Francisco Bar Pilots. San Francisco bar pilots navigate some of the most difficult pilotage grounds in the world. These rate increases will help us maintain a 24/7 presence outside the Golden Gate and ensure the safe and reliable flow of shipping traffic into and out of Northern California waterways.
The State Board of Pilot Commissioners justified their support for a rate increase based on several factors, including the fact that pilots are under increased scrutiny since a San Francisco pilot was at the helm of the Cosco Busan in 2007 and that current rates may not generate pilot incomes high enough to attract candidates.
The Commission also determined that the net income of the local pilots, compared to income levels for pilots of the comparable ports for which information is available, is about in the middle, neither the highest nor the lowest.
According to the Commission’s findings, there is also no evidence these recommended rate increases will divert shipping traffic away from the Bay Area or make local ports any less competitive. Additionally, the Commission noted that physical risk is inherent in the job performed by the pilots and that larger vessels are calling at Northern California ports, increasing the demand for skilled and experienced pilotage.
Despite this, shippers object to the change. The Pacific Merchant Shipping Association (PMSA), representing ratepayers, also submitted a rate change request, one that would have resulted in pilot net incomes of $425,000 by 2016.
We appreciate the important work done by harbor pilots everywhere and believe they should be fairly compensated for their work, said John McLaurin, PMSA president.
However, for the State of California to recommend increasing this rate and further driving up pilot compensation is irresponsible and unjustified.
We will vigorously fight this exorbitant pay increase in the Legislature, added McLaurin. This increased cost directly hinders the ability of our members to improve our ports’ infrastructure to make them more efficient, invest in the environment and create jobs.
Pilot revenues are generated by applying the rate to the size of the ships they guide. As ships continue to grow in size, pilots’ incomes increase accordingly, regardless of any increase in rates.
