Luxury cruise ship Odyssey halts in Cambodia as fuel costs soar

Villa Vie Residences announced that its 650-passenger vessel Odyssey has been anchored in Sihanoukville, Cambodia, after the company suspended operations due to sharply higher fuel costs. The Florida-based firm said it is coordinating the disembarkation of roughly 200 residents and is arranging temporary housing and local transport, though it has not offered funds for passengers to leave the country.

In a telephone interview, founder Mikael Petterson said fuel expenses have risen over 300% since the start of the US-Israel war on Iran, pushing per-cabin fuel costs from about $1,800 to $6,000-$8,000 per month. The increased expense has lifted the ship’s monthly operating costs by about 50% to $3 million.

Petterson added that the company is asking passengers to contribute an additional $500 per month plus a fuel surcharge while prices remain elevated, and is seeking financing to depart the area quickly. The Odyssey, which departed Belfast in October 2024 for a continuous world voyage, offers cabins priced between $130,000 and $440,000 for permanent residency, with monthly fees ranging from $2,000 to $10,000.

The company’s press release acknowledged the situation as “difficult and disruptive” for residents, crew members and employees, and said it is evaluating restructuring and recapitalisation options within the next sixty days.

Industry observers note that the surge in marine gas oil to $1,339 per metric ton in Singapore, up from $700 before the conflict, mirrors broader increases in jet and diesel fuel that have affected airlines and other cruise operators.