Cruise strands passengers in Cambodia after fuel surge

PHNOM PENH – Passengers on a luxury ship touring the world were told their unexpected final stop was Cambodia after the cruise company suspended operations, citing “extraordinary” fuel costs.Villa Vie Residences’ 650-passenger ship, Odyssey, is moored in Sihanoukville, Cambodia, and the company “is working with residents to coordinate disembarkation and identify temporary living arrangements”, a media statement said on Oct 27.While the company is covering lodging and transportation, it has not provided funding for passengers to depart the country, Villa Vie Founder Mikael Petterson said during a telephone interview.The company’s fuel costs have risen over 300% since the start of US-Israel war on Iran, the company said, making the “current operating model extremely challenging”.Per-cabin fuel costs that have historically averaged about US$1,800 (S$2,300) a month surged to as much as US$8,000, it said.Odyssey has been at sea since October 2024 and it is not like a typical cruise line.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 dollars, according to a brochure. The vessel departed Belfast, Northern Ireland, for a “continuous” voyage around the world, according to the company’s website.It is unclear where stranded passengers and staff will go once they disembark in Cambodia.The company press release said it “recognises that this is a difficult and disruptive period for residents, crew members, and employees”.The cost to travel – whether by plane, car or ship – has surged since the Iran conflict spiked the price of oil and the products made from it, including diesel, petrol and jet fuel. Those elevated costs are hitting companies’ bottom lines, feeding into inflation and rippling through the global economy.Very low sulphur fuel oil – a common fuel for use in cruise ships – cost US$962 a metric ton in Singapore on Oct 27. That is down from its wartime highs, but still well above its price of just over US$500 a ton before the US-Iran war began.Odyssey had made stops in 2026 in ports from Tonga to Australia and had been due to end 2026 in India, according to its itinerary, last updated Oct 20.“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 brochure says.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 sixty days.“The company cannot simply pass increases of that scale on to residents,” the company statement said.Villa Vie is far from alone in feeling the brunt of the global fuel crisis.High jet fuel prices helped spell the demise of Spirit Airlines in the spring of 2026, while Royal Caribbean reported on Oct 27 that an otherwise strong quarter was dampened by elevated oil costs. BLOOMBERG