The 650 people living aboard the Villa Vie Odyssey, a 195-metre, 24,344 gross tonnage ship on a permanent round-the-world cruise, were ordered to leave the vessel in Cambodia on Monday morning, October 25, after the company failed to secure fuel to continue operations.
According to passenger Randy Cassingham, a message on the internal messaging board read: "Good morning, everyone. Unfortunately, we were unable to secure the fuel necessary to continue operations. As a result, the Odyssey will enter a temporary layup this afternoon, with crew remaining onboard to maintain the vessel and its essential systems. All residents must disembark by 2pm today."
The message added: "For those who are unable to collect all their belongings before disembarking, please coordinate with guest services to arrange an orderly return using the shuttles, which will remain available until 6pm tomorrow." It concluded: "This is all the information we have available at this time. We will share further updates as they become available."
Fuel costs blamed for suspension
A spokesperson for Villa Vie Residences said the company has "suspended operations in Cambodia as the company works to address extraordinary increases in fuel costs and evaluate restructuring and recapitalisation alternatives". Fuel prices have risen sharply worldwide following the conflict between the US and Iran, which led to the closure of the Strait of Hormuz.
The spokesperson said: "Fuel costs have risen sharply in the regions where the company has been operating. On an equivalent per-cabin basis, monthly fuel expense that historically averaged approximately $1,800 (£1,350) has recently reached an estimated $6,000 to $8,000 in parts of Asia. 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."
Villa Vie Residences said it is "working with residents to coordinate disembarkation and identify temporary living arrangements" and recognises "that this is a difficult and disruptive period for residents, crew members, and employees, and is working to support those affected as plans develop".
Company weighs restructuring options
The company's website states the ship was set to call at more than 425 ports across 147 countries, circumnavigating the world every 3.5 years and visiting destinations such as New Zealand and Southeast Asia.
The spokesperson added: "Since the conflict began in late February, we have taken significant steps to reduce fuel consumption, including slowing the itinerary and spending more time in port. Those measures have not been enough to offset the extraordinary increase in fuel costs, and we have been unable to continue carrying the resulting operating losses. Passing the full increase on to residents is not a realistic solution. Our focus now is on supporting residents, crew, and employees while we work toward restructuring and recapitalization over the next 60 days. That work is ongoing, and no outcome is assured."
Villa Vie Residences continues to evaluate potential paths forward, but no financing or transaction has been finalised, and the company will provide further updates as material developments occur.
Passenger's previous setback
In 2023, Meredith Shay was preparing to set sail with Life at Sea when the company told passengers it had no working ship, cancelling the upcoming sailing. She said last year: "I did sell my house. I put everything into storage, moved out of my apartment. I was about to sell my car. But I am not a 'woe is me' person. There is a song over here, 'dust yourself off and try again'. That is what I've done. I had a 12-hour pity party, then said, 'okay, you're free. Do something'. No encumbrances at all."
She later rented an eighth-floor suite for five years, costing $159,000, with $7,999 a month in homeowner fees, bringing the total to around $630,000.
