Since 2018, the incident rate per port call has been 41 times higher than the international average. In another jurisdiction, 60 percent of maritime safety incidents occurred under pilotage.

It has been warned by the International Maritime Pilots' Association (IMPA) that safety, efficiency, and cost-effectiveness are undermined by deregulation and competition in maritime pilotage. According to IMPA, evidence from multiple jurisdictions shows that such approaches can lead to higher costs, increased incident rates, and reduced service quality.

Pilotage should remain a well-regulated public service 

IMPA commented that pilotage should remain a well-regulated public service because competition may weaken professional standards, discourage investment in training, and ultimately necessitate greater government intervention.In contrast, IMPA added that properly regulated systems deliver significant economic, safety, and environmental benefits.

On Tuesday, March 17, IMPA published a press release stating that maritime pilotage is a public service that exists for the safety of navigation. This service protects people, the environment, and trade. "Some jurisdictions are tempted by the idea that deregulation and competition deliver a better service at a lower cost. This is a mistake, and the evidence agrees."

IMPA has emphasized that those in charge must recognize that deregulation and competition are not effective policies for pilotage, and that they are exposing the public and the shipping industry to unnecessary and avoidable risk.

Deregulation and competition need to change course.

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It was said by Captain Simon Pelletier, IMPA President, that "where deregulation and competition have been introduced, increasing costs and reductions in safety and efficiency have been seen." “In the worst cases, we see systems that fail to adequately protect the public.” "To capture the economic, social, and environmental benefits from maritime pilotage, governments must create the right environment." The overwhelming majority of jurisdictions do this. The few jurisdictions that have introduced deregulation and competition need to change course."

Pilotage fees

IMPA revealed that pilotage fees have increased by 100% in one jurisdiction where competition in service delivery was introduced since 2018. Furthermore, the incident rate per port call is 41 times the international average. In another jurisdiction, 60 percent of maritime safety incidents under pilotage occurred in areas where providers compete with each other to provide the service.

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 The absenceof regulation and competition 

"The absence of regulation and competition are not hallmarks of mature, high-performing pilotage systems. For this reason, some jurisdictions are explicit about their position. The European Union’s Port Services Regulation, for example, safeguards against competition in maritime pilotage. Having experimented with competition in the past, Alaska and Florida explicitly prohibit the practice because of the threat to public interest."  Captain Simon Pelletier Added

Systemic risks 

It was added by IMPA that systemic risks are caused by the negative impact of competition on pilots' professional independence and the incentive for commercial service providers to underinvest in training and professional development. In 2018, KPMG identified underinvestment in safety and quality as a reason competition can be more damaging than a natural monopoly.

Deregulation in pilotage creates a greater need for intervention

The association stated that in instances where the prospect of profit is inadequate, there can be under-provision of pilotage, necessitating government intervention. The government must also intervene when providers abuse their market power. Therefore, deregulation in pilotage creates a greater need for intervention, not less.

The association cited a 2023 economic study that found every dollar invested in a regulated pilotage system generates $60 in safety and efficiency benefits.

ِAbout :International Maritime Pilots' Association (IMPA)

The association was formed on the initiative of pilots’ associations from the five continents whose representatives met in Kiel, Germany in June 1970. IMPA was officially launched in Amsterdam in May the following year. To date, it represents over 8,200 pilot members in 53 countries. IMPA is a non-profit making body with a truly international outlook. It seeks to achieve its principal objective – the promotion of professionally sound and safe pilotage – in two main ways.

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