Declining reliability on the Wood Islands–Caribou ferry is driving up transportation costs for carriers serving eastern Prince Edward Island and straining supply chains across the region’s export-dependent industries, according to a report on the ferry’s economic role.

Produced by Jupia Consultants for the Eastern P.E.I. Chamber of Commerce (EPEICC), the report found that repeated disruptions, berth limitations and dredging-related weight restrictions have eroded confidence in a service long considered essential for commercial trucking.

Blair Aitken, EPEICC president, said the ferries must run on a regular schedule to demonstrate reliability. “The only thing that’s going to improve reliability is dependability,” he said.

Commercial vehicle traffic on the ferry has dropped 46% since 2019, even as eastern P.E.I. manufacturers, agriculture producers, forestry operators and trucking firms continue to rely on the crossing to reach mainland markets. The decline is tied not to lower demand but to unpredictable service, which forces trucks into longer, more expensive trips over the Confederation Bridge when ferries are offline.

Those detours carry a steep cost. Truck transportation on P.E.I. typically ranges from $2.50 to $4 per kilometre. A truck making about 180 annual trips to Halifax saves roughly 24,000 kilometres a year by using the ferry rather than the bridge — worth $30,000 to $40,000 per vehicle.

Slim profit margins for carriers

In 2019, P.E.I.’s truck transportation sector had the thinnest operating profit margins among all provinces, at 2.6% compared with a national average of 4.7%.

Aitken noted those slim margins affect a trucking company’s ability to expand, keep equipment well-maintained and invest in new trucks and trailers.

Transport Canada owns the vessels and terminals, which are leased to Northumberland Ferries to provide the service.

A Transport Canada official told trucknews.com, “The Government of Canada recognizes the importance of Eastern Canada Ferry Services for both commercial and non-commercial users, local communities and the regional economy, and is committed to ensuring a safe and reliable ferry service that meets traffic demand.”

Operational setbacks

The report links the downturn in ferry use to a series of operational setbacks. A fire aboard the MV Holiday Island in 2022 removed it from service. Its interim replacement, the MV Northumberland, entered service June 15, 2025.

The Transport Canada official said that when the MV Northumberland was acquired, new engines were installed and passenger deck spaces were completely updated.

“Transport Canada also works closely with the ferry operator to survey both vessels used on the route, to make targeted investments and to ensure critical spare parts are available,” she said.

The EPEICC report stated that the MV Northumberland cannot use the secondary berth at either terminal, forcing both ferries to halt when primary-berth maintenance is required. Added dredging needs in recent seasons also led to weight restrictions that further limited commercial capacity.

Dredging won’t have impact

The Transport Canada official responded: “With regard to ferry terminals and dredging, both the Caribou and Wood Islands terminals have two berths, each purpose-built for specific vessels. One berth is currently used by the MV Confederation and MV Northumberland, which load vehicles using a single shoreside ramp.

“The second berth, previously used by the former MV Holiday Island, has dual shoreside ramps for bi-level loading — an option not compatible with the current vessels. As a result, dredging would have no impact on the usability of this second berth.”

Businesses feel the pain

Businesses across eastern P.E.I. said the effects of declining ferry reliability were substantial. Seventy-three percent of surveyed firms reported being “highly disadvantaged” by ferry issues in 2024, while another 19% said the disruptions somewhat disadvantaged operations. Only 7% said the challenges had little impact.

Carriers cited supply delays, inconsistent routing for outbound freight and increased wear on equipment linked to longer travel through the Island’s two-lane road network.

Trucks disembarking at Caribou, N.S., reach a four-lane highway within 20 kilometres. Those using the bridge may need to travel up to 175 kilometres before connecting to equivalent infrastructure. The report notes the ferry reduces strain on P.E.I.’s road network, limits congestion and supports provincial goals for reducing transportation-related emissions.

Export industries in eastern P.E.I. depend heavily on those efficiencies. The region generated nearly $700 million in off-Island exports in 2022, accounting for 44% of its total economic output and supporting about 40% of private-sector jobs. Agriculture, forestry, fishing and manufacturing make up a large share of this activity, and many shipments depend on the ferry to manage both travel distances and market access.

Commercial carriers remain among the most frequent users of the service. Survey respondents estimated more than 7,000 commercial trips occur annually, not counting inbound loads. Many businesses said the ferry directly reduces freight costs and allows them to compete more effectively in regional and national supply chains.

Fare reduction

The Transport Canada official noted that the government has recently announced major cost reductions for interprovincial transportation routes in Atlantic Canada, including a 50% fare cut for passengers, vehicles, and commercial traffic on federally supported Eastern Canada Ferry Services, making these transportation options more affordable for users.

But for trucking companies, reliability — not fares — is the dominant issue. Businesses consistently prioritized predictable scheduling, vessel availability and expansion to year-round service.

Report recommendations

The report outlined several recommendations aimed at restoring commercial confidence: retain the MV Northumberland on the route permanently; upgrade secondary berths so planned maintenance does not halt operations; consider 12-month service given milder ice conditions; and work closely with Northumberland Ferries to ensure commercial users are supported. Respondents also called for improved communication, additional sailings and compensation when service is disrupted.

The findings are set against broader economic challenges in eastern P.E.I. The region has faced long-term employment declines in several ferry-reliant sectors, with manufacturing down 46% since 2001, agriculture down 38% and forestry down 22%.

The report argues that a reliable ferry is one of the remaining tools available to strengthen competitiveness for exporters still operating in the region.