Fuel costs force US residential cruise ship to suspend world voyage

A US cruise ship marketed as a floating home for people seeking to travel the world has suspended its around-the-world voyage in Cambodia, citing soaring fuel costs linked to the war in Iran.

The MV Odyssey, operated by Florida-based Villa Vie Residences, is currently docked at the Cambodian port of Sihanoukville, with uncertainty surrounding the future of its three-year journey.

The vessel was carrying 203 passengers, mostly Americans, and 156 crew members, according to Cambodian officials. It has a maximum capacity of 650 passengers.

In a statement issued Tuesday, the company said fuel expenses, which had historically averaged around $1,800 per cabin each month, had increased to an estimated $6,000 to $8,000 in parts of Asia.

The operator said it had attempted to reduce consumption by slowing the ship and spending more time in port but could no longer absorb the rising operating losses.

"We have been unable to continue carrying the resulting operating losses," the company said, adding that transferring the full increase in costs to passengers was not a realistic option.

Villa Vie Residences said it was focusing on supporting passengers, crew members and employees while exploring restructuring options.

Passengers criticise management

The suspension has left hundreds of passengers facing unexpected travel and accommodation arrangements.

Several residents said they received only seven hours' notice to leave the vessel on Tuesday and were forced to organise their own arrangements.

Paul and Lynn Montoya, a retired couple from Wyoming, had purchased a window cabin and boarded the ship 17 months earlier in Panama, expecting to spend years travelling at sea.

Paul praised the residential cruise concept but questioned the company's ability to manage the business sustainably.

He said operational difficulties had emerged well before the latest fuel price increases, pointing to repeated itinerary changes, unreliable internet access and declining food quality.

Lynn said passengers had repeatedly been asked to contribute additional money for fuel and other expenses. She also alleged that crew members had not received their wages.

"We were tired of every two to four weeks being asked for money for fuel, money for everything," she said.

Residents hope to save the venture

Despite the financial difficulties, some passengers remain hopeful that a new investor or a resident-led initiative could rescue the project.

Carol Larson, 69, and her sister Crystal Lavering, 72, from California, had lived aboard the vessel for 18 months.

Larson said she hoped passengers could organise a movement to purchase the ship and continue the residential cruise concept.

She had bought her cabin for $120,000 through an instalment arrangement, alongside monthly maintenance fees, under a plan that offered the possibility of living aboard for up to 15 years.

Despite the suspension, she said she did not regret the investment, describing the experience as worth the financial risk.

Lavering also expressed disappointment, saying her health had improved during her time aboard the vessel.

Iran war disrupts fuel supplies

The company attributed the sharp increase in fuel expenses to the disruption of maritime traffic through the Strait of Hormuz following the outbreak of the war in Iran.

Restrictions on shipping through the strategic waterway have affected petroleum supplies and pushed fuel prices higher, particularly in Southeast Asia.

The Strait of Hormuz is a critical international energy corridor, making disruptions to shipping particularly significant for countries dependent on imported fuel.

Ship's future remains uncertain

The MV Odyssey arrived in Sihanoukville last Friday and was initially scheduled to depart on Wednesday.

According to Long Dimanche, deputy governor of Preah Sihanouk province, the vessel was expected to refuel and leave Cambodia on Saturday. However, the operator had not publicly confirmed a departure date.

Built in 1993, the ship operated under several names and was used by different cruise companies before the coronavirus pandemic disrupted the cruise industry in 2020.

Villa Vie Residences purchased the vessel in 2023 and refurbished it for residential cruising.

The current voyage began in Belfast, Northern Ireland, in October 2024 and was originally planned to last approximately three and a half years, visiting all seven continents.

A second voyage had also been tentatively scheduled, with an expected conclusion in August 2030.

For now, the suspension has left the future of the residential cruise project uncertain, with passengers hoping the vessel can return to service under new financial or management arrangements.

Sources: Reuters reporting, as published by Daily Sabah; statements from Villa Vie Residences and Cambodian provincial authorities.