After delivery Ocean Queen was immediately sent to the Pacific and left Hartlepool on 26 February. The ship called off at Antwerpen to load some machinery to be delivered to several mining locations in the South Pacific, and Plymouth which she departed on 10 March 1909. The ship passed Cape Town on 7 April, eventually arriving in Sydney on 4 May.[5] Among the passengers arriving from England on the vessel there were John T. Arundel, his private secretary and his three daughters, Dorothy, Lilian, and Sydney Arundel. Ocean Queen was scheduled for a five-month long voyage, visiting Ocean Island, Pleasant Island, several islands adjacent to Tahiti where a new venture was to be opened, and also envisioned a visit to Honolulu.[6] After loading general cargo for the islands and 1,200 tons of coal, the vessel departed Sydney on 26 May. After calling at island ports, Ocean Queen loaded phosphates at Ocean Island and sailed on to Hawaii arriving at Honolulu on 23 July. The vessel left Hawaii in early August and took course to Tahiti and Makatea, and from there she was scheduled to visit Nauru on 5 October to take her first load of phosphate for Australia.
Ocean Queen departed Papeete under command of Captain Christian Johanessen on 15 September 1909. She arrived in view of Makatea around 07:00 in the morning of 16 September. The ship was flying full colors in observance of King Edward VII's birthday, and went around to the eastern side of the island of Makatea, close to the settlement of Maumu, instead of the weather shore where she was supposed to deliver her cargo. At around 10:30, while parading herself to the locals, the eccentric rod bent and jammed her engines, rendering them useless. A strong current, present on the lee side of Makatea, carried the vessel towards the shore, throwing and grounding her on the reefs about twenty minutes later. Around 13:00, after all attempts to repair the engines were unsuccessful and seeing the deteriorating condition of the vessel, the captain ordered everybody to abandon ship. Lifeboats were lowered, and the crew and all passengers left the ship in orderly fashion. At approximately 20:00, after developing several holes in her bottom and sides from all the pounding on the rocks, Ocean Queen slid off the reef into the sea and sank in 200 fathoms (1,200 ft; 370 m) of water.[7]
A boat was sent to Tahiti, and two schooners, Susanne and Cholita were dispatched the next day to pick up the crew and the passengers from Makatea. Upon arrival in Papeete, they boarded steamer SS Mariposa and sailed to San Francisco.[7]