Mackinac Island, Mich. — Buoyed by a recent court victory, Mackinac Island City Council members voted Wednesday to reject higher ferry fares and fees that two ferry services planned to charge passengers for the 2026 season.
Instead, the council unanimously agreed to send a letter to Hoffman Marine, owner of Shepler-Mackinac Island Ferry and Arnold Transportation, asking the ferry companies to turn over financial information and corporate data that they said would allow city officials to set fair fares for the upcoming season. They will also consider other ferry fees, such as priority boarding and service fees, which at least one company has been charging since last season, when the city and the ferry company were embroiled in a lawsuit.
The ferry group has 20 days to meet the documentation requirements. City officials said they will work as quickly as possible to determine “fair and reasonable” fares.
If Hoffman Marine does not provide financial data, the city said it will assess daily fines, which are required by the island’s ferry ordinance. They are also preparing to implement interim rates for the 2026 season.
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In a related move, the city directed the ferry service to pay last year’s island supervision fee, set at $150,000 per ferry route, but they said the fee has not yet been paid.
The city’s action Wednesday is the first time the council has publicly discussed setting ferry fares in more than a year. That was prompted by a ruling last week by the U.S. Court of Appeals for the Sixth Circuit that overturned a lower court ruling and restored Mackinac Island’s authority to regulate ferry fares while a broader lawsuit with the ferry operator continues.
The lawsuit dates to December 2024, when the City Council voted to freeze 2025 ferry fares from Shepler’s and the newly renamed Arnold Transit Co. at 2024 prices.
The two ferry groups have asked for a $2 fare increase in 2025 and said the Florida private equity firm that currently owns the two ferry services has invested millions of dollars in equipment and maintenance that year and that more expensive projects have also begun.
But after weeks of hard work, the city council decided to maintain the 2024 fares until 2025. Members acknowledged that this would be a minimal increase taking into account inflation and investments from operator Hoffmann Ships and its parent company, the Hoffmann Family of Companies. But they kept coming back to the fact that they didn’t have enough details about the company’s financials to authorize a rate hike. The commission said the ferry company failed to provide financial information to the city.
Going forward, the ferry group will have to submit the results of an annual independent audit to the city, the committee said.
Under its charter, the island’s council has regulatory authority over ferry fares and timetables.
In late 2024, island officials said they were cautious because both ferry services are now owned by the same company for the first time. In the past, their ownership has been competitive. The city’s legal committee argued that Huffman constituted a monopoly by operating the only two ferry services to the island, owning all ferry terminal space and operating most of the mainland parking lots in St. Ignace and Mackinac. Representative Hoffman raised objections to the monopoly characterization.
The legal battle over regulation of the ferry line is expected to continue into the season, but there is no sign it will affect passenger services on the island.
In the latest lawsuit on March 12, the appeals court vacated part of a 2025 preliminary injunction that had prevented the island from regulating Shepler’s and Arnold Transit fares. However, three judges stayed an order barring island officials from regulating mainland parking fees associated with ferry travel.
The appeals judge concluded that a provision in the ferry’s franchise agreement with the city that allows Mackinac Island to regulate fares “without competition” is ambiguous and must be interpreted through further litigation.
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Ferry prices have increased over the last year. The ferry company sent a “courtesy notice” to city council outlining plans for further increases on many fare options for the 2026 season, so it will be interesting to see what price points the city sets for the upcoming season.
During the 2024 season, for example, Shepler’s website shows adult round-trip fares at $34. Round-trip adult fares will rise to $38 by 2025, while “enhanced” adult round-trip fares, which place passengers at the front of the boarding queue, will cost $50, according to the company’s website. All online bookings are subject to a $3 convenience fee.
A note on the website today said ticket sales for 2026 are not yet open.
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