This is a sore subject to many of those who do not understand the history of pilotage around the world, much less the USA. Yes, precisely, State Pilotage is a regulated monopoly like any other regulated industry in your state. I could spend all morning writing about this. But won’t.
I would ask you to consider this; a State Pilot performs a service that is at first and foremost, for the purposes of safety. For the port he/she is at. For the ship and crew he/she is on. For the environment where he/she works.
Like the fire department you call in the middle of the night to come to your home in an emergency, you want to make one phone call. You know the best guys in town will show up with the best gear and equipment and trained firefighters that your town/city was willing to budget for. You know with one phone call, they will be there in minutes and no questions asked about price, availability, and qualifications or equipment being used. Its a system that is as pure and simple as it should be.
Same thing for pilotage. One phone call to our dispatcher by a vessel’s agent or owner and the service is secured. No need to worry.
The “price” of this service is regulated and negotiated routinely by the Pilotage group, industry, and regulators. Just as any regulated industry in the US. Pilots don’t charge whatever they want. Their rate hearings are usually open to the public and always provide for opposing testimony by industry, if needed.
I’ve been working as a State Pilot for over 25 years in Hawaii. When I started there already had been two competitive pilot groups here working for many years. We were one of three areas in the USA where competition was alive and well, as some people seem to think was a good thing. It ain’t, trust me.
“If the rates are regulated, then how can there be competition??” Great question! If we are charging the same price, how does one pilot group get the job over another? Simple. An agent or owner will call each group and ask “How many tugs will you use on my ship arriving tonight?” I will answer two tugs, as that is the safe way to do the job. The owner hangs up and calls the other pilot group. He says “I’ll hire you to do my ship tonight if you can do the job with ONE tug.” THAT pilot says, “uh, yea, okay.”
It all comes down to safety and yes…saving money. THAT is the difference between one group competing against another in the “regulated rate” environment.
That system sucked. And everybody agreed. The only people who benefitted from that were shipowners far, far away from where I work and live, my port. Accidents happen. The happen more often when you cut corners.
After many years, the two pilot groups finally negotiated an agreement and combined into one group. Since then, our waterfront is a much better place to work and the working environment a safer one.
Competition in a system that is founded on providing a service where safety lays at the foundation, does not serve the best interest of the public. It never has in history. It never will in the future.