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Source: Bizjournals
The harbor pilots who guide ships in and out of Galveston and Texas City on Monday withdrew their application to raise rates charged to shipping and cruise line industries.
Though the Board of Commissioners of Pilots for the Ports of Galveston County had granted the 16 pilots a 7.1 percent rate hike that was expected to be ratified on Monday, the pilots surprised those in attendance at the commission hearing by yanking their application, which had been filed in May.
Niels Aalund, vice president of the West Gulf Maritime Association which represents industry interests, said the decision could be seen as a victory for the industry. He said the pilots had faced harsh criticism for seeking a rate increase despite the economic effects of the recession.
Rates approved in 2007 will continue to be used. The pilots said they will reserve the right to apply for a rate increase in the future.
According to an analysis of pilot rates submitted to the commission on behalf of the Galveston-Texas City pilots by Dibner Maritime Associates LLC, an independent consultant, each of the pilots, who work about 26 weeks a year, earned an average of $314,453 in 2008.
Still to be resolved is the fate of a key memorandum of understanding signed prior to the commencement of the rate hearings between the pilots and the cruise ship industry. The pilots had relented to industry pressure and agreed that they would no longer insist that two pilots board every cruise ship heading in and out of Galveston, regardless of its size. Fees for the second pilot are billed at 50 percent.
At Monday’s hearing, the pilots said that with their application off the table, that meant the agreement with the cruise industry was no longer in force.
Justin Renshaw, the Houston attorney representing the cruise industry, said he was baffled by the pilots’ latest move.
“The bottom line for us is that our agreement is still in force. We seem to take one step forward and then three steps back, which is indicative of how they want to do things down there,” said Renshaw. “I think the pilots’ decision today shows just how difficult it is to negotiate with them. They need to take a step back and not be so emotionally involved.”
Renshaw said the cruise industry will look at its options before pressing forward to clarify the pilots’ position on the agreement.
The harbor pilots who guide ships in and out of Galveston and Texas City on Monday withdrew their application to raise rates charged to shipping and cruise line industries.
Though the Board of Commissioners of Pilots for the Ports of Galveston County had granted the 16 pilots a 7.1 percent rate hike that was expected to be ratified on Monday, the pilots surprised those in attendance at the commission hearing by yanking their application, which had been filed in May.
Niels Aalund, vice president of the West Gulf Maritime Association which represents industry interests, said the decision could be seen as a victory for the industry. He said the pilots had faced harsh criticism for seeking a rate increase despite the economic effects of the recession.
Rates approved in 2007 will continue to be used. The pilots said they will reserve the right to apply for a rate increase in the future.
According to an analysis of pilot rates submitted to the commission on behalf of the Galveston-Texas City pilots by Dibner Maritime Associates LLC, an independent consultant, each of the pilots, who work about 26 weeks a year, earned an average of $314,453 in 2008.
Still to be resolved is the fate of a key memorandum of understanding signed prior to the commencement of the rate hearings between the pilots and the cruise ship industry. The pilots had relented to industry pressure and agreed that they would no longer insist that two pilots board every cruise ship heading in and out of Galveston, regardless of its size. Fees for the second pilot are billed at 50 percent.
At Monday’s hearing, the pilots said that with their application off the table, that meant the agreement with the cruise industry was no longer in force.
Justin Renshaw, the Houston attorney representing the cruise industry, said he was baffled by the pilots’ latest move.
“The bottom line for us is that our agreement is still in force. We seem to take one step forward and then three steps back, which is indicative of how they want to do things down there,” said Renshaw. “I think the pilots’ decision today shows just how difficult it is to negotiate with them. They need to take a step back and not be so emotionally involved.”
Renshaw said the cruise industry will look at its options before pressing forward to clarify the pilots’ position on the agreement.
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