Mackinac Island Ferry Lines Threaten To Halt Service In 2027

MACKINAC ISLAND, MI — The commonly owned Mackinac Island ferry lines threatened to halt summer trips next year unless new franchise agreements are reached, escalating a legal fight over who controls ferry rates and access to one of Michigan’s top tourist destinations

Jonker said the ongoing court battle is unlikely to be resolved before the 2027 contracts expire, and both the island and ferries should begin working out what happens afterward — a scenario where, he noted, either side could walk away and leave visitors and islanders in the lurch. Settlement proposals in the case are due April 30.

Last week, Shepler’s told the island council it has “no alternative” but to reserve the right to cease operations in 2027 without a contract extension on “reasonable and acceptable terms.”

Shepler’s accused the island of refusing to negotiate contract extensions in good faith, trying unsuccessfully to claim the ferry operators run an illegal monopoly and imposing retroactive regulations that Shepler’s says violate its franchise agreement and Michigan law.

Both ferry lines are owned by Hoffmann Marine, which is part of the Florida-based private equity firm Hoffmann Family of Companies. Hoffmann acquired Shepler’s in 2022 and Mackinac Island Ferry Co., now operating as Arnold Transit, in 2024.

The consolidation triggered a widening legal and political fight over whether meaningful ferry competition still exists and whether the island can regulate fares, mainland parking in St. Ignace and Mackinaw City, and other costs tied to ferry service under its state-granted 1887 charter

M Live