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Summary of article:
- Main point one:Luxury residential cruise ship Odyssey suspended operations due to skyrocketing fuel prices, leaving 200 residents stranded in Cambodia.
- Point 2:Industry operators say fuel costs have increased by more than 300% since the war, with costs per cabin reaching US$8,000.
- Key point three:The company plans to charge an additional US$500 per month plus surcharges for emergency relief, and is seeking financing to leave Cambodia as soon as possible.
A luxury residential ship focused on “making the sea your home” and traveling around the worldcruise ship Passengers on the Villa V Odyssey were unexpectedly stranded after the cruise company suspended operations due to an “abnormal increase” in fuel costs.cambodia .
Villa V Residence, the owner of Odyssey, said in a statement on Tuesday (27th) that it is currently “coordinating with residents to disembark and find temporary living arrangements.”
Villa V founder Mikael Pettersson said in a phone interview that the company will cover accommodation and local transportation costs, but has not yet provided travelers with travel expenses out of Cambodia, Bloomberg News reported. The cruise ship, which can carry up to 650 passengers, is currently docked in Cambodia. When the company was forced to ask passengers to disembark, there were about 200 residents on board.
Villa Wei said that since the US-Iraq war, the company’s fuel costs have increased by more than 300%, posing extreme challenges to the existing operating model. The average monthly fuel cost per cabin used to be around US$1,800, but has now increased to a maximum of US$8,000.
Passengers are unwilling to accept the company’s request to increase fares and pay extra to cover the cost of the ship’s fuel to leave Cambodia. Peterson said the company is currently proposing to charge an additional $500 per month on top of the fuel surcharge while fuel prices remain high. He also revealed that the company’s monthly operating costs had increased by nearly 50%, to US$3 million.
Odyssey will depart from October 2024 and is completely different from other cruise ships. The ship departs from Belfast, Northern Ireland, and embarks on a “non-stop” global voyage. Passengers can choose to rent a cabin, purchase a cabin, or purchase a cabin through lease purchase.
According to the brochure, if you want to buy a cabin and live there permanently, prices start at less than $130,000 and go up to $440,000 for a suite; Additional monthly fees range from $2,000 to $10,000.
Peterson said Villa V is also seeking financing and hopes to leave Cambodia “fairly soon.”
The conflict in Iran has driven up the prices of oil as well as petroleum products such as diesel, gasoline and jet fuel, significantly increasing the cost of fuel for planes, cars and ships. Marine light diesel oil used by the Odyssey has been particularly severely affected. In Singapore, the world’s largest ship bunkering hub, prices for marine light diesel have soared to $1,321 a metric ton, according to Clearlinks, nearly double what they were before the Iran war began.
The Odyssey has called at ports from Tonga to Australia this year, and was originally scheduled to end its voyage in India in late 2026. “As you turn these pages, please imagine that you are on a non-stop journey, with each day bringing new horizons, precious memories and genuine connections,” the company wrote in a brochure recruiting residents.
Villa V said that since the Iran war began in late February, ships have tried to reduce fuel consumption by slowing sailing speeds and increasing port dwell times, but these measures are still not enough to offset the increase in fuel costs. The company is currently evaluating restructuring and recapitalization plans, which are expected to be completed within the next 60 days.
