Two ferry lines serving Mackinac Island sent letters to city officials last week announcing they reserve the right to cease operations for the 2027 season, citing what they described as the city's refusal to negotiate a new contract.
Shepler's Mackinac Island Ferry and Arnold Transit Co. are both owned by Hoffmann Marine, a division of the Hoffmann Family of Companies. The ferry companies' move comes amid an ongoing dispute over rate regulation and franchise agreements with the island's city council.
"This is exactly what the City of Mackinac Island feared would happen when all the boats and docks became owned by one company," Erin Evashevski, attorney for the city, said in an emailed statement. "The commonly-owned ferry companies would threaten to weaponize access to Mackinac Island through their complete control of that access in order to get what they want: to continue to operate without actual regulation of their rates."
The dispute stems from Hoffmann Family's purchase of Shepler's Ferry in 2022, followed by its acquisition of Mackinac Island Ferry Co. and its Star Line jets in 2024. The city has argued that these acquisitions eliminated competition in ferry transportation and long-term parking for visitors.
Shepler's Inc. filed a complaint in early 2025 alleging the city had overstepped its authority in regulating the company's fares and schedules for ferries as well as its prices for parking and business operations. The city of Mackinac Island filed a countersuit with multiple claims, asserting it has the right to regulate parking and fare fees and claiming that the companies' common ownership was anti-competitive.
More than 1 million tourists visit the island each summer, according to officials. The ferry companies' letters follow an order April 20 from a federal judge who encouraged both sides to work toward a new agreement before the contracts expire in 2027.
"The City has always been, and remains willing to resolve this issue, but not through such coercion, and certainly not to the detriment of the residents, businesses, visitors and general public," Evashevski wrote. "The City will not be threatened, through lawsuits and the wielding of monopoly power, into giving into the Hoffmann's unreasonable demands."
The ferries resumed service on April 24 for the 2026 season. Tim Hygh, executive director of the Mackinac Island Tourism Bureau, emphasized that service continues amid the dispute between the city and the ferry companies.
"These are ongoing negotiations for the future and do not reflect the reality of what is happening on the water today," Hygh said in a statement. "Right now, Mackinac Island has welcomed back a robust ferry schedule with the same reliable and clean service our guests have expected from these historic lines."
The Michigan Attorney General recently asked the two sides to work out their issues. The ferries have been operating under 15-year franchise agreements that are set to expire in 2027.