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The residential cruise ship Villa Vie Odyssey, which suspended operations due to financial difficulties at its operator and soaring fuel costs, is docked at Sihanoukville port in southern Cambodia on Oct. 29. / AFP-Yonhap

A residential cruise ship that had been sailing around the world with passengers living aboard has abruptly suspended operations in Cambodia after becoming unable to cope with soaring fuel costs. More than 200 passengers living on the vessel received an unexpected order to disembark that morning and were forced to pack their belongings and leave the ship within hours.

According to Reuters on Oct. 28 (local time), cruise operator Villa Vie Residences announced the previous day that it was suspending operations of the Villa Vie Odyssey and disembarking passengers in Cambodia. The company said it was seeking temporary accommodation for the displaced residents. The Odyssey is one of a small number of residential cruise ships designed to sail around the world for at least 755 days, allowing passengers to rent or purchase cabins for long-term residence aboard.

The Odyssey departed Belfast, Northern Ireland, in October 2024 and can accommodate up to 650 people. Cabin prices ranged from $120,000 (approximately 161 million won) for an inside cabin to $440,000 (about 589 million won) for a top-tier villa suite. However, not all cabins had been occupied when operations were suspended.

The operator cited an unmanageable surge in fuel costs as the immediate reason for the suspension. In a statement, Villa Vie Residences said monthly fuel expenses, which had historically averaged around $1,800 (approximately 2.41 million won) per cabin, had recently surged to between $6,000 and $8,000 (about 8.03 million to 10.7 million won) 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," the company said.

According to the operator, it had made extensive efforts to reduce fuel consumption since the war in Iran began in late February, including slowing the ship's itinerary and extending its time in port. However, those measures proved insufficient to offset the extraordinary surge in fuel costs, and the company said it could no longer absorb its mounting operating losses.

Long Dimanche, deputy governor of Cambodia's Preah Sihanouk province, confirmed that 203 passengers and 156 crew members had been aboard the ship. He told reporters that some passengers had already departed Cambodia by air, while others remained in the southern port city of Sihanoukville awaiting further arrangements. The Odyssey is scheduled to refuel and leave Cambodia on Oct. 31 after disembarking its passengers.

The sudden order to leave the ship came without warning that morning. According to Randy Cassingham, a passenger who lived aboard the Odyssey with his wife and documented their life at sea on a website, the company's chief executive officer posted a notice shortly after 7 a.m. Cambodia time, instructing residents to disembark by 2 p.m. The notice also advised passengers who could not remove all their belongings by the deadline to coordinate separately with staff.

Videos shared by passengers on social media captured the anxiety and disappointment of residents confronted with the unexpected order to leave. Some passengers, however, responded positively, saying the disruption had unexpectedly given them an opportunity to explore mainland Southeast Asia.

Cassingham argued that deeper structural weaknesses lay behind the operator's explanation of soaring fuel costs. Writing on his website, he said the crisis had not been entirely unexpected.

"It was a cascade of problems piling up on one another, from the business model to mistakes by management to the mentioned crisis in fuel cost and availability, and more," he wrote.

Villa Vie Residences said in a statement that it would pursue extensive restructuring and recapitalization over the next 60 days, although no financing arrangements have yet been finalized. The company did not immediately respond to questions.

                                                                                                              Jeong Ri-na