Cruise passengers stranded in Cambodia after fuel cost surge - The Straits Times

The company said its fuel costs have risen over 300% since the start of US-Israel war on Iran.

PHNOM PENH – Passengers on a luxury 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 Oct 27. 

While the company is covering lodging and local transportation, it has not 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. 

The company’s fuel costs have risen over 300% since the start of the US-Israel war on Iran, the company said, with per-cabin fuel costs that have historically averaged about US$1,800 (S$2,300) 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 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.

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. 

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.

“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 evaluating restructuring and recapitalisation alternatives over the next 60 days.

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.

“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 in early 2027.

“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!” BLOOMBERG