(Oct 28): Passengers on a luxury residential ship touring the world were unexpectedly stranded in Cambodia after the cruise company suspended operations, citing “extraordinary increases” in fuel costs.
Villa Vie Residences is now “working with residents to coordinate disembarkation and identify temporary living arrangements”, it said in a statement on Tuesday.
While the company is covering lodging and local transportation, it hasn’t provided funding for passengers to depart Cambodia, where the 650-passenger Odyssey is now moored, Villa Vie founder Mikael Petterson said during a telephone interview. About 200 residents were on board when the company was forced to ask them to disembark, he said.
The company’s fuel costs have risen more than 300% since the start of US-Israel war on Iran, Villa Vie said, with per-cabin fuel costs that had historically averaged about US$1,800 (RM7,340) a month surging to as much as US$8,000.
The Odyssey, which has been at sea since October 2024, is not like a typical cruise line. The vessel departed Belfast, Northern Ireland, for a “continuous” voyage around the world, according to the company’s website, and its passengers either rent, own or rent-to-own cabins on the ship.
The price of a cabin for permanent residency ranges from just under US$130,000 to as much as US$440,000 for a suite, with monthly fees of US$2,000 to US$10,000, according to a brochure.
Passengers baulked at a request to pay more to cover the cost of fuel to depart Cambodia. The company is now proposing an additional US$500 a month fee, on top of a surcharge, as long as prices remain elevated, Petterson said, adding monthly operational costs have climbed by about 50% to US$3 million.
Villa Vie is also seeking financing in order to depart the area “quite quickly”, Petterson said.
The cost of fuelling planes, cars or ships has surged since the Iran conflict spiked the price of oil and the products made from it, including diesel, gasoline and jet fuel. Those elevated costs are hitting companies’ bottom lines, feeding into inflation and rippling through the global economy.
Cruise ships run on the same fuels that keep much of the world’s fleet moving, but marine gasoil, which powers the Odyssey, has been particularly hard hit. Marine gasoil has surged to US$1,321 a tonne in Singapore — the world’s largest bunkering hub — almost double what it cost before the Iran war, according to data provider ClearLynx LLC.
Odyssey had made stops this year in ports from Tonga to Australia and had been due to end 2026 in India. “As you flip through these pages, envision yourself sailing on a continuous odyssey where every day promises new horizons, cherished memories, and heartfelt connections,” the company wrote in a brochure for prospective residents.
Since the Iran war began in late February, the ship has tried to reduce fuel consumption by slowing its itinerary and spending more time in port, but the measures did not offset fuel costs, it said. The company is now evaluating restructuring and recapitalisation alternatives over the next 60 days.
Villa Vie is far from alone in feeling the brunt of the global fuels crisis. High jet fuel prices helped spell the demise of Spirit Airlines this spring, while Royal Caribbean Cruises Ltd reported Tuesday that an otherwise strong quarter was dampened by elevated oil costs.
“It’s been abundantly clear for at least two months that cash flow was a significant concern,” said Kelly Kosmin, 57, who travelled on the ship for some segments of the journey before disembarking in Australia in March. She had planned to rejoin the cruise in Sri Lanka early next year.
“The concept of affordable residential cruising has never been done until this ship,” Kosmin said. She would be happy to pay the additional US$500 a month, as well as the fuel surcharge, to return to the boat.
“We all wanted to be pioneers,” she said. “And so we are!”
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