A vessel transfer system utilizes a larger, surface effect vessel with a hull and a cargo deck, having a pressurized volume of air under its hull. The larger vessel cargo deck is lowered relative to a water surface in order to receive a smaller vessel. Lowering is achieved by depressurizing the volume of pressurized air under the hull. Movable propulsors on an air cushion vehicle permit efficient operation under way in an outer position, while minimizing the envelope dimensions for stowage in a well deck, providing clearance from bridges, docks, etc. in an inner position. In the outer position, the propellers operate in more uniform inflow conditions, resulting in improved performance and lower noise levels. In addition, the craft can be arranged to use a full width stern ramp resulting in time saved during cargo loading/unloading. The propellers will be less likely to ingest green water in high sea states.