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Make harbor pilots part of a free market, say maritime groups

October 21, 2009

Harbor pilots respond

Click here to read a retort by the Florida Harbor Pilots Association.

With hourly rates of more than $4,000 for harbor pilots in some ports, cruise and cargo ship groups are calling Florida’s pilot system a monopoly that limits pilot numbers and inflates their salaries.

A study commissioned by the Florida Alliance of Maritime Organizations (FAMO) said that harbor pilots, who board cargo and cruise ships and help guide them through congested harbors, make an average salary of $368,000 per year.

According to the study, the harbor pilots make well above similar occupations, causing Florida to lose jobs, income, economic output and state revenue.

The pilots make more than fireman, air traffic controllers, and even airline captains, who on the largest planes make on average $225,000 per year, the study found.

"Pilots like to say that their job is very dangerous, but a fireman that climbs into a burning building makes an average of $55,000 per year,” said Michele Paige, president of the Florida-Caribbean Cruise Association (FCCA) and of FAMO.

Paige said that the average harbor pilot makes about $2,000 per hour, and that their compensation has continued to grow in part because there are so few pilots. Florida’s 14 ports were served in 2008 by 88 pilots, who were paid approximately $50 million in fees by cargo and passenger vessel operators.

"The pool of eligible pilot licenses has historically been kept low and not subjected to free market conditions," as licenses are issued by the state Board of Pilot Regent_pilotCommissioners, half of whom are harbor pilots, the study said.

"We are looking at a system that’s archaic, and that was approved 35 years ago," Paige said. "The ships are different, the ports are different, the technology is different. We’re looking at having a better system. And one of the most pertinent reasons why is because it is costing consumers a lot of money to keep the system the way it is."

The additional costs to the ships are passed onto consumers who ultimately buy the cargo or, in the case of cruise lines, the passengers.

Paige said that in Tampa the average cost per cruise for the harbor pilot services was $14,000 per 70-gross-ton ship. At that rate, if the 160,000-ton Freedom of the Seas were to dock in Tampa, the pilot fee would be more than $30,000.

"They charge based on tonnage, which is also archaic," Paige said. "When the ships were smaller, it went under the radar screen. Now it’s the same pilot, who had no different training, and it takes no more time, but instead of making $500 they are making $14,000."

This is the second time that cruise industry has taken on the harbor pilot system in recent months.

The FCCA, along with Carnival Corp. and Royal Caribbean Cruises Ltd., have been involved in a lengthy dispute with the Galveston-Texas City Pilots Association over its requirement that two pilots be aboard every cruise ship. The second pilot charges the line half of the regular rate.

Over the summer, the association said it would lift the two-pilot requirement if the cruise lines supported a 5% rate increase.

From 1 to 5 of 14 Comment(s)

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#14October 27, 2009
Those who have been in the "inside" of the travel industry have know this to be true for quite some time. (I am an attorney, not a cruise line exec...but as a member of the public, I do own shares of cruise line stock.) This is a closed group, and there are some serious restriction of trade issues. Notwithstanding the profits of cruise lines (most of which are investor-owned) this is a real issue. Kudos, Johanna, for having the fortitude to bring it light.
#13October 25, 2009
I was led to understand that when pilots are on the bridge, they are not actually in command of the ship, but are only there to give advice to the master (probably followed 99.9% of the time). It would seem highly redundant and even dangerous for the master to be taking advice from more than one pilot. Sounds a lot like railroad industry featherbedding to me.
#12October 22, 2009
What a fine piece of biased reporting! One can only hope that those who believe these facts and figures will peruse the comment section for a little enlightenment.
#11October 22, 2009
Cruise ships do not want pilots because pilots can make decisions based on SAFETY and NOT on schedule or some other company agenda. You think Carnival (a foreign company that does NOT pay taxes) is going broke having to pay for a pilot? Well they made 1 BILLION PROFIT in the first three quarters of this recessionary year. Seek the truth. There are pilots in every port around the WORLD.
#10October 22, 2009
What an excellent piece of objective journalism! An article based solely on a "study" made by a group formed to lobby for this change, with not one word from the pilots. Keep up the good work, Johanna! Since she did not provide that perspective, here it is. Pilots are highly skilled, highly trained professionals responsible for the safety and security of vessels and the traveling public in the ports they serve. Salary figures put out by lobbyists trying to further their cause should be met with skeptitism (I'm looking at you, Johanna Jainchill!) In this case the salaries quoted are wildly inaccurate. Foreign-flagged cruise lines want this change for one reason -- to pad the millions in profits they make each year at the expense of pilots who are indpendant contracts -- small business owners -- in our local communities. Shame on the FAMO lobbyists, and shame on Travelweekly.
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