Steamship Authority mulls largest rate hike yet for Nantucket, Martha's Vineyard ferries

Amidst problematic staff shortages and upcoming retirements, an outdated booking system, and a bevy of increased expenses, the Steamship Authority is considering wide-ranging fare and fee increases for the 2025 season.

A budget plan and proposed rate adjustments were unveiled at the Oct. 1 Port Council meeting , but members are holding off on voting at least until next month.

The proposed rate increases would adjust passenger fares by $2.7 million, excursion fares (a fee structure for islands residents) by $1 million, standard fares by $6.1 million, freight vehicles by $4.6 million, and parking and miscellaneous fees by $827,000.

Steamship Authority Treasurer Mark Rozum admitted the adjustments represent "the largest rate increase" for the transit organization.

"Let’s just rip the bandage right off and talk about it," he said.

Why might Steamship Authority rates go up so much?

The biggest driver, Rozum explained, is payroll, with a goal to keep able-bodied seamen on boats and "training them, for example, to become pilots and captains," he said. "That’s a real cost."

According to the financial officers, the Authority is facing significant operating expenses: employee wages and benefits are going up by $8.79 million, vessel and landside maintenance will cost $1.2 million more, and training costs are increasing by $403,231. Insurance costs are also going up nearly $1.2 million, though about $600,000 of that will be a one-time cost associated with work on the M/V Monomoy, Rozum said.

The Authority is additionally looking to replace its 27-year-old booking system in tandem with completing its website overhaul, with IT costs increasing by $3.08 million.

Meanwhile, revenues are down in some areas, according to Rozum, including a decrease in passenger revenue of about $845,000, and in automobile revenue of about $2.5 million.

"Without any rate adjustment we come in at a net operating loss of $5.4 million next year," he said.

How much will the ferry cost to Martha's Vineyard and Nantucket under the new proposal?

For the Vineyard route, standard fare vehicle rates would go up by $6 to $11 in the off-season, and $21 in the shoulder season. Summer Monday through Thursday rates are proposed to go up $11, and peak pricing on Friday, Saturday and Sunday in the summer is proposed to increase by $25.

Auto coupon books would go up about $100, excursion fares in the off season would go up $3.50 each way and in the summer season $5, freight would see a 10% increase, adult passenger fares would go up $1 each way, and fares for children and seniors would be adjusted by .50 each way.

For the daily off-season parking fee, a $4 to $5 per day increase is recommended, with adjustments of $7 per day Monday through Friday and $2 per day Saturday and Sunday for other times of the year. Parking permits in Woods Hole would be increased by $200 and at the Palmer Avenue lot in Falmouth by $100.

On the Nantucket route, the standard fare vehicles would go up $18 to $25 in the off season, and $30 in the summer. In the shoulder season from Sept. 15 through Oct. 31, the fare would be adjusted by $45.

Coupon books for the Nantucket route would increase by $144, excursion fares would go up $9 in the off season and $12 in the peak season, and freight on the Nantucket route would go up 12%.

The one-way adult fare on the faster Nantucket ferry would go up $4 one-way, or $3 for same day round trips; children's one-way fares would go up $2 or $1.50 for same day round trips, and seniors one-way fares would go up $3 or $3.50 for same day round trips.

No adjustments are proposed for the conventional ferry on the Nantucket run.

Will higher rates stop ferry cancelations and delays?

Increased investment in training is aimed at developing a workforce that will produce new pilots and captains, Rozum said, with an eye toward avoiding the reduced trip schedules , cancellations and delays that have recently beleaguered the transit authority.

Rozum said ideally a vote on the suggested increases would take place next month, so any accepted increases are in place in time for reservations for the first quarter and next summer. The council's next meeting is on Nov. 5.

How to be part of the conversation: Open houses planned

Three informational open houses on the recommendations are planned later this month:

On Oct. 21 at the Nantucket Public Safety Building, 4 Fairgrounds Road, Nantucket, 3:45-5:45 p.m.

On Oct. 22 at the Tisbury Senior Center, 34 Pine Tree Road, Vineyard Haven, Martha's Vineyard, 5-7 p.m.

On Oct. 24 at the Steamship Authority Offices, 228 Palmer Ave., Falmouth, 5-7 p.m.

Heather McCarron can be reached at hmccarron@capecodonline.com .

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This article originally appeared on Cape Cod Times: Steamship Authority mulls largest rate hike yet for Nantucket, Martha's Vineyard ferries