Cruise Lines Sue over Gal-Tex Pilot Rates

Carnival Corporation, Royal Caribbean Cruises and the Florida-Caribbean Cruise Association have filed suit in Texas State District Court against the Board of Pilot Commissioners for Galveston County Ports. They are seeking review of the Commission's actions, alleging a failure to enact a tariff agreed on for the Galveston-Texas Pilots Association in August after complex and sometimes contentious rate hearings.

During these hearings, one point of agreement that had been reached was that the Gal-Tex Pilots would drop a requirement for a second pilot on cruise vessels less than 1025 feet long, a concession that benefits the cruise lines and the Port of Galveston.

After two days of hearings the commission agreed to grant the pilots a 5 percent rate increase. However, when it came time to implement the increase, Commission President Vandy Anderson said that the commission had intended a 5 percent revenue increase for the pilots and, to meet that goal, the actual rate increase had to be more than 5 percent. Industry members including the above-named cruise lines, the West Gulf Maritime Association and the ports of Galveston and Texas City were not persuaded by this reasoning and reportedly immediately began making plans to appeal.

However, the pilots then withdrew their application for a tariff increase in its entirety. According to the commissioners, that meant that the pilots and industry users reverted to an agreement reached back in 2007 --- which includes the requirement to have a second pilot on cruise vessels less than 1025 feet long. Earlier this month, the pilots filed yet another rate increase application, one that appears to reinstate the requirement for a second pilot on all vessels including cruise ships over 850 feet LOA. Following the new Gal-Tex rate application, the cruise lines and industry association filed their suit in Texas State District Court.

Contact Janet Nodar at jcnodar@bellsouth.net.