April 26, 2026.
Can local communities and tribes competing for tourism dollars in Northern Michigan set aside their differences to join together to form a public transit ferry service that would benefit all communities?
Now is the time to ask this question because...............According to various Michigan News Sources including the newspaper owned by a company associated with Hoffman Marine Shepler’s Mackinac Island Ferry and Arnold Transit Company sent letters to the City of Mackinac Island dated April 21, 2026 notifying the City Council that the ferry companies “reserve the right to cease operations for the 2027 season.”
The companies, which are both owned by Hoffman Marine, say they're providing notice because the city has so far refused to “engage in good faith contract negotiations” to renew the franchise agreements governing ferry service that are set to expire in 2027.
Mark Magyar, a Dykema attorney representing Hoffman, Shepler’s and Arnold Transit, said the ferry companies felt they were left with no choice but to send the letters. Stating that “The parties need to just sit down and come to a sensible business resolution ... get a new contract and be ready to continue on when this current contract expires under whatever new terms we may come to,” he said. “But what we’ve been running into is that the city doesn’t want to talk to us at all.”
Magyar said "the two ferry companies have been trying for months to start contract negotiations at the urging of U.S. District Judge Robert Jonker."
Separate cases are ongoing in the U.S. District Court for the Western District of Michigan over whether the ferries’ joint ownership by Hoffman constitutes a monopoly and who has the power to regulate the ferries. On March 20 a Federal Case was dismissed by Judge Jonker according to Mackinac.org
While this appears to be more of a temper tantrum than a real threat..... Hoffman Marine has invested heavily into the Mackinac Straights Communities. In addition to Arnold Line and Shepler's Ferry they offer freight transportation, private charters, and group trips. Though highly unlikely they could move their boats to be used for other services or move them out of state if an agreement is not reached. As a result of the expenses in ferry maintenance and fuel costs it is unlikely that they are making a profit. They may be justified in raising their ticket costs.
Other Sources for funding include the Michigan Ferry Service Funding Grants managed by MDOT. OR ...the State of Michigan Legislature can provide financial support in their annual state budget if desired. As a reminder most of the sales tax revenue generated in Northern Michigan is actually used down state as a result of tax codes that distribute the tax revenue based on population not where it is generated. This would be a project that can return some of the sales tax revenue to the people that earned it while continuing to grow the sales tax base for the entire state.
This dispute indicates it is worth conducting a feasibility and planning study to see if a Mackinac Straights and Eastern U.P. Ferry Project is self-sustainable along with asking the State of Michigan for funds.
Mackinac Bridge Traffic Counts indicate that there are enough Visitors, Local Residents, and Tribal Members needed to make a seasonal non-profit public transit ferry system self-sustainable.
If any public transit system can beat the odds and operate as a self-sustaining ferry system it is a ferry between the Mackinac Straights, Hessel, Cedarville, the Les Cheneaux Islands, and Detour Village. The beauty and peacefulness of the Great Lakes Journey would draw people from across the planet, increase business for all locations served, while serving the local tribal members.
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