MV Odyssey world cruise suspended in Cambodia as Iran war pushes fuel costs to $8,000 per cabin

The MV Odyssey, operated by Florida-based Villa Vie Residences, has suspended its voyage in Cambodia after a sharp rise in fuel costs made operations financially unsustainable. The ship is currently docked at Sihanoukville port on the Gulf of Thailand. The ship, which began its around-the-world journey in October 2024, has no confirmed departure date.

The suspension has forced hundreds of passengers to leave the vessel, and some residents have expressed disappointment over the sudden disruption to their long-term living arrangements.

Villa Vie Residences stated that monthly fuel expenses per cabin, which historically averaged $1,800, had risen to an estimated $6,000 to $8,000 in parts of Asia.


The company attributed the increase to the war in Iran, which has disrupted traffic through the Strait of Hormuz and tightened supplies of petroleum-based fuels, particularly in Southeast Asia.

The operator, in an interview with AP, stated that he had attempted to control expenses by slowing the itinerary and spending more time in ports to reduce fuel consumption. However, these measures were insufficient to offset the increase in costs.

"We have been unable to continue carrying the resulting operating losses," Villa Vie Residences said in a statement issued on Tuesday to AP. "Passing the full increase on to residents is not a realistic solution. Our focus now is on supporting residents, crew, and employees," while it tries to restructure.

"The company is working with residents to coordinate disembarkation and identify temporary living arrangements," it said.

According to Cambodian officials, the ship was carrying 203 passengers, mostly Americans, and 156 crew members. It has a capacity of 650 passengers.

However, some residents said they received only seven hours' notice to disembark on Tuesday and had to arrange their own accommodation and onward travel.

Paul and Lynn Montoya, a retired couple from Wyoming, bought a window cabin and boarded the ship 17 months ago in Panama. They had expected to live aboard for years.

Paul supported the concept of residential cruising but questioned the operator's ability to run the business sustainably. He cited itinerary changes, unreliable internet access and declining food quality, which he said had prompted some residents to leave in recent months.

Lynn said residents had repeatedly been asked to contribute additional money towards fuel and other expenses. She also alleged that 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." The company could not immediately be contacted for comment.

Despite the uncertainty, some passengers hope a new operator or an arrangement involving residents buying the ship could allow the venture to continue.

Carol Larson, 69, and her sister Crystal Lavering, 72, from California, had lived aboard the Odyssey for 18 months. Larson bought her cabin for $120,000 in instalments, in addition to monthly maintenance fees, under a plan that offered the possibility of living aboard for up to 15 years.

"I hope there is a movement for the residents to buy the ship and I am hoping that goes through because it's a dream to live on the ship and I don't want it to end," Larson said.

Although she acknowledged the financial risks of investing in a start-up business, Larson said she did not regret her decision.

"Because it was a startup company, I believe that it was a risk. From the very first day, I said to myself that if it lasts a year, I can walk away and feel like I got my money's worth ... I still feel that way. I feel blessed to have been part of the experiment of residential cruising," she said.

What happens next?

Built in 1993, the Odyssey was bought by Villa Vie Residences in 2023 after previously operating under different names and being affected by the coronavirus pandemic.

The current voyage began in Belfast, Northern Ireland, in October 2024 and was originally planned to last three and a half years. A second cruise had tentatively been scheduled to end in August 2030.

Long Dimanche, deputy governor of Preah Sihanouk province, said the ship had arrived on Friday and was initially scheduled to depart on Wednesday. He indicated that it was expected to refuel and leave Cambodia on Saturday, although the operator has not publicly confirmed a departure date.

For passengers who purchased cabins as long-term homes, the immediate concern remains finding accommodation and determining whether the residential cruise venture can continue.