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Washington State Ferries

Washington Fixed the Ferry Crew. The Boats Still Cost $714 Million.

Summary

Washington State Ferries closed its crew gap fast — deck and engine staffing are both up more than 20% since 2022, and crew-caused cancellations fell from 60% of all cancellations to 18%. But the state just paid $714.5 million for three replacement ferries, and has secured only $1.68 billion of the $6 billion its own electrification plan says the fleet actually needs.

By Nero · July 10, 2026

Washington State Ferries is the largest ferry system in the United States, carrying commuters, freight and tourists across 21 vessels in the Salish Sea. For three years it ran two overlapping crises at once: not enough licensed mariners to crew the boats it had, and not enough money lined up to replace the ones wearing out. In 2026 those two crises are no longer the same size. One is closing. The other just got a $714.5 million bill.

New ferry contract
$714.5M
for 3 replacement vessels
Deck + engine crew, 2026
1,279
+253 since 2022
Electrification funding gap
$4.3B
of a $6B fleet plan

The crew problem, mostly solved

For years, a missing deckhand or engineer could cancel a sailing outright — Coast Guard rules set a minimum crew for every vessel class, and if even one licensed position goes unfilled, the boat cannot legally leave the dock. WSF's own service planning document called the resulting shortage "unprecedented in its 74-year history," driven by a mariner shortfall the document put at roughly 21,000 people worldwide — a shortage the Jones Act makes worse for U.S. operators, since unlike BC Ferries or other international lines, WSF cannot hire crew from outside the country.

That gap is closing. Deck crew grew from 656 employees in 2022 to 817 in 2026; engine-room crew grew from 370 to 462 — both increases of roughly a quarter — according to figures WSF Deputy Secretary Steve Nevey presented at the agency's May 26, 2026 community meeting. Retirement risk fell alongside the hiring: the share of captains within five years of retirement dropped from 53% to 40%, and chief engineers from 34% to 23%, over the same span.

WSF deck and engine crew, 2022 vs. 2026
Employees by category
Deck crew, 2022
656
Deck crew, 2026
817
Engine crew, 2022
370
Engine crew, 2026
462
Source: WSF Deputy Secretary Steve Nevey, community meeting, May 26, 2026 (via Kitsap Daily News / Bainbridge Island Review)
View data as table
Deck and engine crew, 2022 vs. 2026
Deck crew, 2022656WSF, reported May 2026
Deck crew, 2026817WSF, reported May 2026
Engine crew, 2022370WSF, reported May 2026
Engine crew, 2026462WSF, reported May 2026

The effect shows up directly in WSF's own cancellation accounting. In the quarter ending September 2023, 60% of the system's 1,069 canceled sailings were attributed to crew shortages. By the quarter ending December 2024, cancellations had fallen to 538 — and only 18% of those were crew-caused, with mechanical issues (30%) and weather (28%) now the larger factors, per the same WSF planning document. The staffing crisis that defined WSF's service reliability for half a decade is, for now, receding.

Share of canceled sailings caused by crew shortages
Two WSF fiscal quarters, 15 months apart
FY24 Q1 (Jul–Sep '23)
60%
FY25 Q2 (Oct–Dec '24)
18%
Source: WSDOT, Washington State Ferries Service Contingency Plan (May 2025), citing WSDOT Gray Notebook data
View data as table
Crew-caused share of cancellations
FY24 Q1 (Jul–Sep 2023)60%of cancellations were crew-caused
FY25 Q2 (Oct–Dec 2024)18%of cancellations were crew-caused

The money problem, still open

The boats themselves are a separate machine, and it is not fixed. On July 1, 2025, Governor Bob Ferguson announced that Florida-based Eastern Shipbuilding Group had won a $714.5 million contract to build three new 160-vehicle hybrid-electric ferries — the first time in roughly 50 years a WSF vessel contract has gone to a shipyard outside Washington, after Seattle's Vigor Marine, which had built every state ferry since the late 1970s, chose not to bid. Eastern's price was 6% below WSF's own engineer's estimate. It is still enormous: once owner-furnished propulsion equipment, construction management, crew training and contingencies are added in, the governor's office put the all-in cost of the first vessel alone at roughly $405 million, the second at $360 million and the third at $325 million — a combined $1.09 billion for three boats.

That price has been climbing for years before the ink dried. The Legislature's independent audit arm, JLARC, found that WSF's own cost estimate for the first hybrid-electric Olympic-class vessel rose from $188 million in September 2018 to $249 million by December 2022 — and criticized WSF for budget requests that don't clearly explain how much of each increase is inflation versus design changes versus uncertainty the agency simply hadn't priced in.

Cost of the first new hybrid-electric ferry, three points in time
Vessel 1, planning estimate → signed contract, $ millions
Sept. 2018 estimate
$188M
Dec. 2022 estimate
$249M
2025 contract, all-in
$405M
Source: JLARC Report 23-05 (May 2023); Office of Governor Bob Ferguson (July 2025)
View data as table
First hybrid-electric ferry, cost over time
Sept. 2018 estimate$188MJLARC Report 23-05
Dec. 2022 estimate$249MJLARC Report 23-05
2025 contract, all-in$405MGovernor's office, July 2025

Three boats do not replace a fleet. WSF's system electrification plan calls for 16 new hybrid-electric vessels and electrified charging at up to 16 terminals by 2040, at a total estimated cost of $6 billion. As of mid-2026, WSF has secured $1.68 billion of that — from the state's Move Ahead Washington package, the Climate Commitment Act, and smaller federal grants — leaving roughly $4.3 billion of the plan unfunded, per WSDOT's own public accounting of the project. Riders are already absorbing part of the gap: the Washington State Transportation Commission approved fare increases in August 2025 to help meet a legislatively set $408.8 million fare-revenue target for the two-year period ending June 2027 — vehicle and passenger fares both rose 3% in October 2025 and will rise another 3% in May 2026.

The takeaway

  • The crew shortage that defined WSF for half a decade is genuinely improving. Deck and engine staffing are both up roughly 25% since 2022, and crew-caused cancellations fell from 60% of a much larger cancellation total to 18% of a much smaller one.
  • The fleet's price tag rose faster than its funding did. The first new ferry's cost estimate climbed from $188 million to $249 million before WSF ever signed a contract — and the actual signed price, $405 million all-in, is higher still.
  • The state has committed to a $6 billion fleet it has only funded 28% of. $1.68 billion is secured against a 16-vessel, 16-terminal plan that runs through 2040; the rest is an open question the Legislature will answer budget cycle by budget cycle, fare increase by fare increase.

Crew and cancellation figures span WSF fiscal quarters and community meetings reported at different times in 2025 and 2026; vessel cost figures combine a legislative audit's account of WSF's own budget-request history with the state's actual 2025 contract terms, so the three data points are not drawn from a single uniform methodology.

Sources

  • Washington State Department of Transportation — Washington State Ferries Service Contingency Plan (May 2025): crew shortage history, the 21,000-mariner global shortfall estimate, the Jones Act constraint, and quarterly cancellation-cause data (60% crew-caused in FY24 Q1, 18% in FY25 Q2). wsdot.wa.gov
  • Sound Publishing (Kitsap Daily News / Bainbridge Island Review) — "WSF reports staffing improvements for deck, engine employees" (May 27, 2026), reporting WSF Deputy Secretary Steve Nevey's deck/engine staffing and retirement-risk figures from the agency's May 26, 2026 community meeting. kitsapdailynews.com
  • Office of Governor Bob Ferguson — "Governor Ferguson selects Eastern Shipbuilding Group to construct new ferries" (July 1, 2025): the $714.5 million contract, per-vessel all-in cost breakdown, and the Vigor non-bid. governor.wa.gov
  • Washington State Joint Legislative Audit and Review Committee — Hybrid Electric Ferries: Design-Build Contracting and Procurement (Report 23-05, May 2023): the $188 million-to-$249 million cost-estimate escalation for the first hybrid-electric vessel. leg.wa.gov/jlarc
  • Washington State Department of Transportation — Ferry System Electrification project page: the $6 billion total program cost, $1.68 billion secured funding, and 16-vessel/16-terminal scope through 2040. wsdot.wa.gov
  • Washington State Transportation Commission — "New fares for Washington State Ferries approved" (Aug. 6, 2025): the $408.8 million legislatively set fare-revenue target for the 2025–2027 biennium and the approved fare increases. wstc.wa.gov
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