Residential cruise ship suspends world voyage in Cambodia, leaving 200 stranded

The operator blames fuel costs that rose after the Iran war began, but some residents and CBS News point to money and management problems.

16 news outlets reported this

Liberal7 outletsCenter6 outletsConservative3 outlets

Published Oct 31, 20264 min read

Overview

The Villa Vie Odyssey, a residential cruise ship, suspended its round-the-world voyage in Sihanoukville, Cambodia, on Tuesday. Its Florida-based operator, Villa Vie Residences, told residents to leave the ship. Cambodian officials said 203 passengers, mostly Americans, and 156 crew members were aboard.

The ship can hold up to 650 passengers and left Belfast, Northern Ireland, in October 2024. The company blames fuel prices that rose after the Iran war began. It says fuel spending per cabin each month, historically about $1,800, has reached $6,000 to $8,000 in some Asian regions.

It says slowing the itinerary did not close the gap and it will seek restructuring and funding over 60 days, though no outcome is assured. Passengers quoted by the AP say they received no support and had to arrange their own lodging, while the company says it is working with residents on temporary housing. CBS News, citing internal documents and sources, reports the company was out of money in Singapore in early August.

Founder Mikael Petterson told CBS News a Chapter 11 filing is likely and told Business Insider he is considering bankruptcy. Petterson says the company would have been fine without the Iran war, while residents and CBS cite earlier management and cash problems.

Three sides of the story

Liberal7 outlets

The Guardian ties the suspension to fuel prices after the US war on Iran, noting that the has been effectively closed since 28 February and oil topped $117 this month. It quotes blogger and resident Randy Cassingham, who describes a "cascade of problems" including the business model and management mistakes. The AP text run by HuffPost has residents saying they got no support and were given seven hours to leave.

Paul Montoya says the company was already struggling, and Carol Larson blames Trump and poor management but says she has no regrets. CBS News reports on internal documents showing the company owed several million dollars by August, plus a document showing a loss even at full occupancy. A source close to the company disputes the cost figure.

It relays an alleged bribe in Vietnam, a ship detention in Hong Kong, and Petterson's statement that a Chapter 11 filing is likely. ABC News stresses that passengers lost their homes, says the crew's status was unclear, and notes the company's statement did not address a planned second ship.

The Guardian (US): Passengers stranded in Cambodia after cruise halted due to high fuel costs
CBS News: Internal documents show failed scramble to save "forever cruise"
HuffPost: U.S. Cruise Ship Strands 200 Passengers In Asia Over Rising Fuel Costs
ABC News: US cruise ship ends global voyage due to fuel costs; 200 passengers lose their homes

Center6 outlets

Centrist outlets build the story around the company's statements and passengers' own accounts. The BBC says it is unclear how many were aboard, with around 200 reportedly ordered off. It quotes Lanette Canen and Johan Bodin on being told by the chief executive on Tuesday morning to leave that afternoon, and Holly Hennessey on staying in Cambodia in hope the ship sails again.

It adds background on Sihanoukville, the delayed 2024 departure and cabin prices of $120,000 to $440,000. UPI calls it a 42-month cruise and describes a four-fold jump in fuel costs. It quotes Hennessey telling CNN that passengers had under 24 hours and had been asked for a fuel surcharge in May.

Straight Arrow News quotes Cassingham, writing online, saying the company gave no list of hotels, and reports that Cambodian officials said the ship could leave Saturday, which Villa Vie had not confirmed. The Hill reports the ship has no certain departure date.

Conservative3 outlets

The New York Post, citing a Business Insider interview, reports founder Mikael Petterson calling himself the "villain" and saying he feels awful. He says the company would have been fine without the Iran war, was too small to hedge fuel costs as larger lines do, and is weighing bankruptcy after an investor deal fell apart. The Post adds fuel-price data from Ship & Bunker and mechanical problems that delayed the 2024 departure.

The Post also ran a Reuters report on Lynn and Paul Montoya of Wyoming, who sold their house and cars to buy a $179,000 cabin. Paul says the company ran out of money and they do not expect a refund. The Daily Caller, citing the AP, Reuters and others, stresses how abrupt the order was, names Chief Executive Kathy Villalba, and quotes Long Dimanche, deputy governor of Preah Sihanouk province, on retirees left homeless.

It cites Fox Business on lifetime-residence prices. The Washington Times reports the ship suspended its voyage over fuel costs, stranding 200 passengers.