By Eunki Seonwoo
Record-breaking prices for diesel fuel are driving increases in the cost of shipping and trucking around the world, and that economic pain is hitting home here on the Island as the Steamship Authority (SSA) looks to increase fares to offset the rising costs.
For Islanders, that means an uptick in ferry ticket costs to access, from a 50¢ increase in an adult ticket to $4.25 increases for Vineyarders bringing a car aboard.
SSA is looking at a preliminary 2027 budget of $174.2 million. First presented to the Port Council on Sept. 1, the proposed budget is a 7.5 percent increase from the 2026 budget of $162.08 million. Still, this isn’t the final version, and SSA Treasurer and Comptroller Mark Rozum said he “expects these things to change somewhat as things materialize.”
The potential rate increases also reflect the SSA’s pattern of utilizing fare adjustments to offset rising costs and inflation. The ferry line’s fares have increased annually since 2022, when adult tickets were raised to $9.50.
Now the SSA is looking at rate increases across fare types and parking fees. Here’s how that breaks down for the Vineyard route:
Passengers
$11 to $11.50 for a one-way adult ticket.
$5.75 to $6 for a child ticket
$94.50 to $99 for 10-ride adult pass
$57.50 to $59.75 for 10-ride child/senior pass
$193.75 to $203 for 46-ride pass
Vehicle
Vehicle rates on the SSA vary depending on the time of year. For the standard fare, the proposed increases to one-way vehicle tickets would be $4 (Jan. 1 to March 31), $6.50 (April 1 to May 14), $7 (Sept. 15 to Oct. 31), and $4.50 (Nov. 1 to Dec. 31). During the summer, or May 15 to Sept. 14, it’s a $9 increase from Mondays through Thursdays and a $17 increase from Fridays through Sundays. Meanwhile, the excursion (Islander) fare has a simpler proposed increase of $3 (Jan. 1 to May 31 and Sept. 1 to Dec. 31) and $4.25 during the summer (May 15 to Sept. 14).
Parking
A $1 increase to the daily parking fee from Jan. 1 to Dec. 31 (new rates between $21 and $26 depending on season).
$950 to $1,000 for a Palmer Avenue lot pass
$2,050 to $2,250 for a Woods Hole lot pass
And freight booking rates are proposed to be raised 6 percent.
The proposed rates, according to Rozum at a SSA board meeting on Tuesday, would bring in an additional $9.3 million in revenue, with $5.6 million coming from the Vineyard route.
The primary cost driver, SSA Assistant Treasurer Courtney Oliveira said during the Tuesday ferry line board meeting, are vessel fuels and payroll.
The cost of fuel has skyrocketed since February, when the U.S. and Israel launched a joint attack against Iran, a war that’s led to trade route blockades, military strikes across the Middle East, and thousands of deaths. It’s a contrast to President Donald Trump’s campaign trail promises to cut down on energy costs, and no wars. The SSA’s main fuel for its fleet is ultra-low-sulfur diesel which, according to the U.S. Energy Information Administration, has almost doubled to $6.28 a gallon, roughly 1.7 times higher than the $3.80 per gallon cost in the week of Feb. 23.
Rozum said the SSA’s fuel prices are estimated to increase by $4.9 million, or 43 percent, next year. While the ferry line has locked in 63 percent of 2027 fuel purchases, it’s still a high cost compared with 2026, when fuel was budgeted at $11.5 million.
“There’s a lot more risk this year than there was last year, with the price volatility in the market,” Rozum said.
And the SSA uses a tremendous amount of fuel across its vessels. According to a SSA fuel report, the ferry line acquired 3.8 million gallons of fuel in 2025, which cost $9.6 million.
But covering high fuel costs is not exclusive to the SSA, Rozum said. This is an issue that is hitting across the transportation and shipping sector. Other ferry lines have also raised rates in response to higher fuel prices, such as a $3, or 5.7 percent bump, at Hy-Line Cruises. The U.S. Postal Service implemented an 8 percent increase in postage costs in March to offset fuel costs, and private companies like FedEx and UPS raised shipping rates by roughly a quarter-percent.
“Everybody is in the same boat that we are,” Rozum said.
The ongoing development of the SSA’s new reservation system is also expected to contribute to a $4.8 million increase to personnel costs, although much of the hikes also stem from pay raises agreed upon in union contracts. Training including for the new reservation system and new captains is expected to cost roughly $1.8 million for next year.
Under the current proposed budget, which also includes $161.8 million in forecast revenue — including more than $9 million in grants for capital projects like the slip repair in Vineyard Haven — the SSA is expected to have a net income of $573,246 next year. The budget also has more than $1 million contracted for terminal maintenance.
Peter Jeffrey, Falmouth representative and board chair, called for more data on costs to the ferry line, and on how customers utilize the trips. He also questioned a lack of a contingency funding line item.
“This has been an exceptionally awful year in terms of … our operational contingencies,” Jeffrey said, noting a concrete bumper that was damaged in Nantucket by a ferry collision, and doors of the Barnstable falling off earlier this fall, which cost the SSA around $60,000 to recover.
The budget is based on past traffic and upcoming capital projects, so Rozum said there is no “rainy day fund” for “what-ifs,” but some contingencies are built into different parts of the budget, like for repairs to the Oak Bluffs terminal after storms.
“This is a bare-bones budget,” Rozum said, also noting that it does not include the RD-99 renewable fuel currently used in the Island Home.
The SSA scheduled open houses where ferry line officials will review and answer questions regarding the “proposed budget, the factors that are escalating expenses, and cost-saving measures that are being implemented in response,” a press release states.
The open house on the Vineyard is scheduled for Tuesday, Oct. 27 from 5 pm to 7 pm at the Martha’s Vineyard Hebrew Center in Tisbury. Two more open houses are scheduled on Nantucket, on Oct. 26 from 4 pm to 6 pm at the Nantucket Hotel and Resort, and in Falmouth, on Oct. 28 from 5 pm to 7 pm at the SSA Administrative Office.
