Iran war fallout: Cruise ship carrying permanent residents suspends voyages over soaring fuel costs

Hundreds of people living aboard a cruise ship that had been travelling around the world for more than two years were forced to disembark in Cambodia after its operator suspended operations, citing soaring fuel costs linked to the Iran war.The owner of the Villa Vie Odyssey, Villa Vie Residences, announced on Tuesday that it was suspending operations and disembarking passengers in Cambodia while working to arrange temporary accommodation for them, Reuters reported.Monthly fuel expenses, which had historically averaged around $1,800 per cabin, have recently risen to an estimated $6,000 to $8,000 in parts of Asia, the company said in a statement.“The company cannot simply pass increases of that scale on to residents, and the resulting shortfall has placed its current operating model under unsustainable financial pressure,” it said.The ship had been cruising the world for at least 755 days, offering passengers the option to rent or buy long-term or permanent residences on board. It can accommodate up to 650 people, although its rooms were still being filled. Reuters reported.The vessel had 203 passengers and 156 crew members on board, deputy governor of Cambodia’s Preah Sihanouk province, Long Dimanche, said. Some passengers had already left on flights, while others were waiting in the port city of Sihanoukville, he told the media.The ship is scheduled to refuel before leaving Cambodia on Saturday, Dimanche added.According to Reuters, accommodation options on the vessel include an inside villa priced at $120,000 and “villa suites” costing $440,000.The company said it had taken steps to reduce fuel consumption since the Iran war began in late February, including slowing the ship’s itinerary and spending more time in port. However, these measures were insufficient to offset what it described as an “extraordinary” increase in fuel costs.“We have been unable to continue carrying the resulting operating losses,” the company said, adding that it would seek to restructure and recapitalise over the next 60 days. No financing had been finalised.