Villa Vie Residences suspended operations of its 650-passenger residential cruise ship on Tuesday, citing "extraordinary" fuel costs that have placed its business model under unsustainable financial pressure.
The Florida-based operator is evaluating restructuring and recapitalization options as it coordinates the disembarkation of passengers from its Odyssey ship, moored off Cambodia.
Fuel costs have soared more than 300% since the Gulf conflict erupted in late February.
Very low sulfur fuel oil (VLSFO), a marine fuel used to power large ships, rose to $966 a metric ton in Singapore earlier today. At the onset of the conflict, the maritime fuel jumped to nearly $1,200 a metric ton, up from prewar levels of around $500.
"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 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 p
