Jessica Mathews / news@whmi.com


Michigan Attorney General Dana Nessel is encouraging the City of Mackinac Island and Hoffmann Marine, the owner and operator of all commercial passenger ferry services to the Island, to enter facilitative mediation with a mutually selected mediator to resolve ongoing disputes.

Hoffmann Marine, which controls both Shepler’s Mackinac Island Ferry and Mackinac Island Ferry Company, recently sent letters stating that it may discontinue operations next year.

Litigation between the ferry operator and City of Mackinac Island started in March 2025 over the ability of the City to regulate rates.

The legal battle is over the alleged monopoly and the rates the company can charge customers. Rates have continued to climb steadily, which Hoffmann attributes to cost increases. The Island argues rates are pricing out visitors.

In a statement, the company said it "reserves the right to cease operations for the 2027 season in the absence of a contract extension on reasonable and acceptable terms."

In a recent court order, the United States District Court for the Western District of Michigan warned that current litigation is counterproductive and urged a “sensible business solution” before the current agreements expire in 2027.

Attorney General Nessel issued the following statement in response:

“Mackinac Island is vital to our state’s tourism industry. With more than one million visitors each year, the continued vitality of the Island and access to natural wonders depend on a collaborative relationship between the City and the owner of the ferries that serve as the primary gateway to its shores.

“With the current agreements expiring next year, both sides should not be consumed by a long legal battle that serves no one – not residents, not business owners, and not the tourists who boost Michigan’s economy. I urge the City and Hoffmann Marine to prioritize a ‘sensible business solution’ that preserves the Mackinac Island experience for years to come.”

A link to the court order is provided.

Photos: Shepler's Ferry Facebook