Failure to comply with AMSA direction brings hefty fine

Gladstone Magistrates Court in Queensland, Australia, has fined Universal Shipping Alliance AUD 63,000 for failing to comply with an Australian Maritime Safety Authority (AMSA) written direction. The company was also ordered to pay court costs. Universal Shipping Alliance is the Australian agent for the KMAX Leader, a Liberian-flagged bulk carrier that entered the Port of Gladstone in October 2023 because of propulsion issues. The vessel underwent extensive work in November 2023 which failed to repair its propulsion. Concerned with the lack of an effective repair plan, together with cyclone season approaching and the increased risk of a large ship with no propulsion within the Great Barrier Reef region, a written direction notice was issued by AMSA to provide a towage and fault rectification plan.

The captain of the KMAX Leader and Universal Shipping Alliance Ltd, failed to respond to and act on the issued direction, despite repeated requests from AMSA. After unsuccessful attempts to restore the vessel’s propulsion system, the KMAX Leader was eventually towed from Australian waters in February 2024 to an overseas port and subsequently banned from Australian waters for a period of 6 months.

Failure to act on a direction issued by AMSA is a serious violation of the Navigation Act 2012 and carries severe consequences. AMSA executive director operations Michael Drake said ignoring lawful directions from AMSA is not an acceptable option. “AMSA will consider swift and strong action if issued directions are not acted on promptly and in full. This may, in some cases, result in prosecution. “In this case, with a cyclone bearing down on the port, the consequences of not engaging a towage vessel to move the vessel out of the port, could have been catastrophic. “We will not compromise on the safety of vessels and crew, or any potential threat to the community or environment.”

During the 2023-24 financial year, AMSA issued 57 directions to vessels and operators in relation to safety breaches, mechanical deficiencies and maritime labor issues.