Cruise ship halted in Cambodia over fuel costs

A three-year around-the-world cruise has stopped in Cambodia because fuel prices tripled, forcing hundreds of residents to leave the vessel without a confirmed return date. The MV Odyssey, marketed as a floating residence, is currently docked in Sihanoukville on the Gulf of Thailand. The suspension follows a sharp spike in operating costs that the company said it could no longer absorb.

The ship carries 203 passengers and 156 crew members, according to Cambodian officials. Most passengers are American. The vessel has a total capacity for 650 people. Villa Vie Residences, the Florida-based operator, reported that monthly fuel expenses per cabin historically averaged $1,800. In parts of Asia, those costs have climbed to an estimated $6,000 to $8,000 due to the war in Iran. The company attempted to cut consumption by slowing its route and staying in port longer, but the measures failed to offset the price surge.

Traffic in the Strait of Hormuz has decreased since the conflict in Iran began. This reduction has squeezed petroleum supply chains, particularly in Southeast Asia, driving up fuel prices. Villa Vie Residences issued a statement on Tuesday explaining that carrying the operating losses was no longer viable. The company said passing the full increase to residents was not realistic. It is now working with residents to coordinate disembarkation and identify temporary living arrangements while it restructures.

Passengers reported receiving only seven hours notice on Tuesday to disembark. Many said they had to make their own travel and housing arrangements. Paul and Lynn Montoya, a retired couple from Wyoming, boarded the ship in Panama 17 months ago. They purchased a window cabin and expected to live aboard for years. Paul Montoya stated that the shipowner lacked the expertise to sustain the business financially. He noted that rising fuel costs were publicized as the reason for the stop, but he argued the company had been struggling before the prices jumped. He cited itinerary changes, unreliable internet, and declining food quality as factors that pushed other residents to leave earlier.

Lynn Montoya said residents were repeatedly asked for additional funds to cover fuel and other expenses. She described a recent call to raise money specifically to get the ship out of Cambodia. She also said crew members had not been paid. "We were tired of every two to four weeks being asked for money for fuel, money for everything," she said. "We had hopes but they just kept sinking further and further into the hole through mismanagement."

Carol Larson, 69, and her sister Crystal Lavering, 72, lived in separate cabins on the ship for 18 months. Both are from California. Larson bought her cabin for $120,000 in installments, with a plan promising up to 15 years of residence. She blamed the spike in fuel costs from the Iran war and poor management for the suspension. Despite the turmoil, she said she did not regret the investment. "I feel blessed to have been part of the experiment of residential cruising," she said. Her sister Lavering said her health improved during her time aboard, including no longer needing a cane to walk. She described the suspension as heartbreaking.

The Odyssey was built in 1993 and operated under different names before Villa Vie Residences bought it in 2023. The current voyage began in October 2024 in Belfast, Northern Ireland. The ship was scheduled to depart Sihanoukville on Wednesday but is now expected to refuel and leave on Saturday. The operator has not publicly confirmed that date. In February 2020, the MS Westerdam was allowed to dock in Sihanoukville after being turned away by five other ports due to pandemic fears. That vessel carried 1,455 passengers, more than 600 of whom were American citizens.