The TI Oceania is one of four massive dual-hulled ships that were built by Daewoo Shipbuilding in South Korea in 2001. The TI stands for Tanker International, an oil tanker dealer, while the other three ships in the quartet are the Africa, Asia and Europe.
The purchaser of all four ships was Hellespont, the Greek shipping giant. Originally named the Fairfax, the keel for the ship was laid on June 25, 2002, with the subsequent name change taking place two years later when the tanker was sold to Euronav NV.
The Oceania, like its sister ships, travels at speeds of up to 16.5 knots and was built to last for up to a quarter century. Its huge capacity and size allows it to carry a maximum amount of 3.16 million barrels worth of oil, possessing a dead weight tonnage of 441,585 tons and gross tonnage of 234,006 tons.
That size can be seen in the ship’s measurements of being nearly 1,247 feet in length, a breadth of just over 223 feet and draught of 80.38 feet.
At the start of 2015, the Oceania became a warehouse to store oil for Vitol SA, the world’s largest independent oil dealer, off the coast of Singapore. The plunging price of oil resulted in a glut that required having a source to maintain the commodity for future sales when oil prices rise again. It remains to be seen when that will occur, since August 2016 prices are at the same level or lower.
The idea of spending $40,000 per day to hold that oil may seem strange, yet companies have few options. This phenomenon, known as “cotango,” last happened in 2009 after the worldwide economic crisis and occurs when the current prices are below the cost of shipping it in the future.