Luxury Cruise Ship Residents Given Less Than 24 Hours To Leave As Iran War Fuel Crisis Bites

Luxury Cruise Ship Residents Given Less Than 24 Hours To Leave As Iran War Fuel Crisis Bites

The company said rising fuel prices and disruptions in the Strait of Hormuz had created unsustainable financial pressure on its operations.

Aluxury residential cruise ship that has sailed around the world for more than two years has suspended operations in Cambodia after rising fuel costs linked to the Iran war made its voyage financially unsustainable.

Villa Vie Residences, the Florida-based operator of the Villa Vie Odyssey, announced the suspension on Tuesday, saying it was working to arrange temporary accommodation for residents, many of whom own cabins and live permanently aboard the vessel, according to CNN.

“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,” the company said in a statement.

“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.”

The company said rising fuel prices and disruptions in the Strait of Hormuz had created unsustainable financial pressure on its operations.

According to Villa Vie Residences, monthly fuel costs per cabin have increased from about $1,800 to as much as $8,000 in parts of Asia, which relies heavily on energy imports from the Middle East.

“Passing the full increase on to residents is not a realistic solution,” the company said, adding that it was pursuing restructuring and recapitalisation over the next two months, although “no outcome is assured.”

The Odyssey began its continuous global voyage from Belfast, Northern Ireland, more than two years ago after months of delays.

The 640-foot vessel was marketed as a residential cruise ship offering long-term living arrangements and access to more than 400 destinations around the world.

According to the company’s website, five-year residency packages start at $59,999, while permanent cabin ownership costs $119,999. Residents also pay monthly fees ranging from $3,299 to $9,500, depending on their suites, covering meals, drinks, Wi-Fi, medical visits, housekeeping and other services.

Cabins are also available for rent from $3,499 monthly.

Holly Hennessy, who has lived aboard the ship with her cat, Captain, since it began sailing, said residents were given less than 24 hours’ notice to disembark.

She said the financial difficulties had become increasingly apparent since the war began, adding that residents were asked to pay a fuel surcharge in May.

Hennessy also said the ship had reduced its use of cooling systems to conserve energy, making conditions aboard potentially uncomfortable.

Despite the challenges, she described the experience of living on the vessel as “priceless.”

“It was not sustainable as it was set up,” Hennessy said. “That doesn’t diminish the memories, the adventure, the very special moments of having been a true global citizen.”

Sharon Lane, a California retiree who purchased a cabin on the ship, told CNN in June that she intended to remain aboard for as long as the vessel continued operating.

The cruise company estimated last year that the ship had about 15 years of seafaring life remaining.

“This is a home,” Lane said. “I’m just living on and loving the ship.”