Initially a car ferry in the late 1980s, the Chairel operated between Isla Mujeres and Cancun. It was reportedly owned by a Mexican telephone company called "Teléfonos de México." which brought the ferry from Tampico to replace the existing Frontera car ferry, but it was eventually discontinued in favour of a larger vessel that better suited to the needs of the island.

In 1990, the Chairel was repurposed as a floating restaurant near Cancun. However, on October 18, 2000, the Chairel was scheduled to be intentionally sunk to create an artificial reef and dive site on the Caribbean side of Isla Mujeres. It was towed five miles out for the planned sinking but unfortunately, bad weather moved in, and the ship was sunk hurriedly. The shape of the ferry platform and the wave action caused the boat to capsize, resulting in the Chairel Shipwreck ending up upside down on the ocean floor.

Despite being inverted, the Chairel has become a vibrant dive site. Although divers are not permitted to enter the ship, its exterior features offer plenty of interesting areas to explore. Debris from the helm of the wreck and small rock piles make it a perfect habitat for marine life