The Gladstone Magistrates Court has fined Universal Shipping Alliance Ltd $63,000 for failing to comply with a written safety direction issued by the Australian Maritime Safety Authority (AMSA).
The company, which owns the foreign-flagged bulk carrier KMAX Leader, has also been ordered to pay court costs for its non-compliance.
The Liberia-flagged vessel first arrived at the Port of Gladstone in October 2023 after experiencing propulsion issues. In November 2023, the ship underwent extensive repair work, but the propulsion system was not restored.
Due to the lack of an effective repair plan, AMSA intervened, particularly as cyclone season was approaching, increasing the risk of a large, immobilised vessel remaining in the Great Barrier Reef Region.
The authority issued a formal direction, requiring a towage and fault rectification plan to ensure the vessel’s safe removal. However, both the ship’s captain and Universal Shipping Alliance Ltd failed to respond to requests from AMSA.
The KMAX Leader was eventually towed out of Australian waters in February 2024 to a foreign port with no successful propulsion restoration. Following this, AMSA banned the vessel from returning to Australia for six months.
Failing to act on AMSA’s directives is a serious violation under the Navigation Act 2012 and can lead to legal action and strict penalties.
AMSA’s Executive Director of Operations, Michael Drake, stated that non-compliance with safety directives is unacceptable. He warned that AMSA would take swift and strong action against companies that fail to comply, adding that prosecution is a possible consequence in such cases.
Drake discussed the potential dangers of an unpowered vessel left attended during a cyclone, stating that the failure to arrange towage could have led to severe consequences for the port, environment and surrounding communities.
AMSA has been actively monitoring vessel compliance, and during the 2023-23 financial year, the authority issued 57 safety directions to vessels and operators for mechanical deficiencies, safety breaches, and maritime labour violations.
AMSA has reaffirmed that it will not compromise on safety standards, ensuring that all vessels operating in Australian waters adhere to strict maritime regulations to prevent serious risks.
Reference: AMSA
