SIHANOUKVILLE, Cambodia (AP) — A U.S. cruise ship on an around-the-world voyage that touted its cabins as floating homes suspended its three-year journey in Cambodia due to fuel costs, forcing hundreds of passengers to disembark.

The MV Odyssey set sail two years ago on a voyage to the seven continents marketed as combining long-term living at sea with global travel. Its operator had offered to “make the Odyssey your permanent home,” with the purchase price of a suite for the lifetime of the vessel starting around $230,000.

For now, it is docked at the Cambodian port of Sihanoukville on the Gulf of Thailand, with no certain departure date.

The ship has been carrying 203 passengers, mostly Americans, along with 156 crew members, according to Cambodian officials. It has a 650-passenger capacity.

Its Florida-based operator, Villa Vie Residences, said monthly fuel expenses per cabin that historically averaged $1,800 have reached an estimated $6,000 to $8,000 in parts of Asia due to the war in Iran. The company said it sought to reduce fuel consumption by slowing the itinerary and spending more time in port, but was unable to offset the surging costs.

Traffic has been curtailed in the Strait of Hormuz since the war in Iran began, squeezing supplies of all kinds of petroleum-based fuels, especially in Southeast Asia, and sharply increasing prices.

“We have been unable to continue carrying the resulting operating losses,” Villa Vie Residences said in a statement issued Tuesday. “Passing the full increase on to residents is not a realistic solution. Our focus now is on supporting residents, crew, and employees” while it tries to restructure.

“The company is working with residents to coordinate disembarkation and identify temporary living arrangements,” it said.

Those on the ship had hoped to sail for years to come

Passengers, however, said they received no support and had to make their own arrangements after being given seven hours notice on Tuesday to disembark. Some were devastated and expressed hope a new company could rescue the venture so life at sea can continue.

Paul and Lynn Montoya, a retired couple from Wyoming, said they bought a window cabin and had expected to sail for years. They boarded the ship 17 months ago in Panama.

Paul praised the concept of residential cruising but said the shipowner lacked the expertise to make the business financially sustainable. While rising fuel costs had been cited publicly as the reason for the suspension, he said the company had already been struggling. Changes to itinerary, unreliable internet access and declining food quality had pushed many residents to leave the ship in recent months, he said.

Lynn said residents were repeatedly asked to contribute additional money for fuel and other expenses, including a fresh call to raise funds for fuel to get out of Cambodia. She said the crew members were also not paid.

“We were tired of every two to four weeks being asked for money for fuel, money for everything,” she said. “We had hopes but they just kept sinking further and further into the hole through mismanagement.”

The company could not immediately be contacted for comment.

For some, the venture was a risk worth taking

Yet for some, even the financial and logistical turmoil couldn’t outweigh the extraordinary experience of traveling the world and living at sea.

Carol Larson, 69, and her sister Crystal Lavering, 72, occupied separate cabins aboard the ship for 18 months. The siblings, from California, described the suspension as heartbreaking, and hoped the cruise would be resuscitated.

“I hope there is a movement for the residents to buy the ship and I am hoping that goes through because it’s a dream to live on the ship and I don’t want it to end,” Larson said.

Lavering said her health improved during her time on the ship, and that she didn’t need to use a cane to walk anymore. “You come to this ship to live … it’s just sad that it’s all over.”

Larson bought her cabin for $120,000, paid in installments, in addition to monthly maintenance fees, under a plan that had promised the possibility of living aboard for up to 15 years. She said she blamed U.S. President Donald Trump for the ship’s woes as fuel costs spiked due to the Iran war, in addition to poor management. But she said she didn’t regret her investment.

“Because it was a startup company, I believe that it was a risk. From the very first day, I said to myself that if it lasts a year, I can walk away and feel like I got my money’s worth … I still feel that way. I feel blessed to have been part of the experiment of residential cruising,” she said.

The cruise began in Northern Ireland in 2024

The ship arrived in Sihanoukville last Friday and was scheduled to depart Wednesday, according to a statement from Long Dimanche, the deputy governor of Preah Sihanouk province. He said it was now expected to refuel and depart Cambodia on Saturday, but the ship’s operator has not yet publicly confirmed any date.

Built in 1993 and operated under different names by several cruise lines over the years before being becalmed by the coronavirus pandemic in 2020, the Odyssey was bought by Villa Vie Residences in 2023.

Its current cruise, originally intended to last 3 1/2 years, began in October 2024 in Belfast, Northern Ireland, where the ship had been refitted. A second cruise had been tentatively scheduled to end in August 2030.

The Odyssey is not the first cruise ship Sihanoukville has hosted in crisis.

In February 2020, the MS Westerdam was allowed to dock in Cambodia after being turned away at five ports in other nations because of fears of COVID-19, which just a month earlier had started to spread from China. It carried 1,455 passengers, more than 600 of them American citizens.

After being stranded at sea for two weeks, Cambodia’s then-Prime Minister Hun Sen allowed it to dock for what he said were humanitarian reasons. Cambodia won plaudits as passengers were welcomed ashore and arrangements were made for them to fly home.

WASHINGTON (AP) — The Federal Reserve is expected to stand pat on interest rates Wednesday even though inflation has accelerated in the past couple of months as the Iran war has caused spikes in oil and gas prices.

The Fed’s latest policy meeting concludes less than a week before the midterm elections, which have focused heavily on concerns about the cost of living and affordability. Consumers have generally soured on an economy weighed down by more expensive gas, groceries, and clothing, among other items.

The Fed, led by Chairman Kevin Warsh, wants to return inflation to its 2% target, which it typically does by raising its short-term interest rate. Higher borrowing costs, over time, can cool spending and slow inflation. The Fed raised its key rate last month for the first time in three years, from about 3.6% to 3.9%, in what many investors and economists perceived was a first step toward a renewed effort to bring down inflation.

Yet Warsh faces a host of challenges in achieving that goal. President Donald Trump slammed the Fed for raising its key rate last month, though he largely blamed the central bank’s rate-setting committee, rather than Warsh, whom he appointed. And some of the forces driving inflation — specifically the rapid buildout of artificial intelligence infrastructure and higher energy prices — won’t easily be tamed by higher interest rates.

At the same time, other parts of the economy are already being hit by higher rates, which were lifted by market forces, even before the Fed hiked last month. The average 30-year mortgage rate reached a three-year high of 7.4% earlier this month, though it has since slipped a bit. Higher mortgage rates have made buying a home unaffordable for 5 million more Americans since the beginning of the year, according to Oxford Economics, a consulting firm. Over time, Fed rate hikes can make mortgages, auto loans, and credit card borrowing more expensive, adding to Americans’ sense that things like homes and cars are getting pricier.

After the Fed announces its rate decision, Warsh will speak at a news conference, where his remarks will be closely watched for hints about the Fed’s next steps. He will likely repeat the Fed’s desire for a “timelier” return of inflation to the 2% target. Some may view that as a sign the Fed will boost its key rate at its next meeting, in December, a move already widely expected by Wall Street investors.

If the Fed keeps rates on hold, Warsh will be pushed to explain why the central bank hiked in September but not this month. Inflation picked up in September, when consumer prices rose 3.7% compared with a year earlier. The increase was much bigger than the 2.4% rate in February, just before the Iran war.

And on a monthly basis, the consumer price index — the most widely-followed inflation gauge — rose 0.3% in both August and September. At that pace over a full year, inflation would rise much more quickly than the Fed’s 2% target.

On Thursday, a separate inflation measure more closely followed by the Fed, the personal consumption expenditures price index, is forecast to have jumped 3.6% in September from a year earlier, up from 3.4% in August. Core prices, which exclude the food and energy categories, are forecast to have risen 3.1%, up from 3% the previous month.

Aditya Bhave, head of U.S. economics at Bank of America, said economists and the Fed have gotten too complacent about above-target inflation. Higher oil and gas prices will likely keep inflation elevated for several more months, he said, and rising diesel costs will elevate shipping prices for nearly every type of good, which could spread inflation more broadly through the economy.

“Unless the Fed takes this problem more seriously and stops essentially making excuses about inflation, I think we’re not going to get back to 2% until the next recession,” Bhave said.

Warsh will likely seek to keep the Wednesday press conference relatively short. It was about 30 minutes last month. Warsh’s predecessor, Jerome Powell, often held news conferences for about 45 minutes.

The Fed’s policy meeting is part of a busy week for central banks around the world. The Bank of Canada will also meet Wednesday and is forecast to lift its key rate a quarter point, to 2.5%. Policymakers at the European Central Bank and the Bank of Japan are both scheduled to meet Thursday and are expected to keep their key rates unchanged.

For Warsh and the Fed, another key consideration is that the U.S. economy is growing at a healthy pace and unemployment remains low, at 4.2%, even if hiring is also sluggish. The government will report Thursday on growth for the July-September quarter, which is expected to reach 3%, according to a forecast by data provider FactSet. That would be up from 2.2% in the April-June quarter.

Many economists argue that solid growth is evidence that interest rates aren’t particularly high and the economy could withstand higher rates to combat inflation.