Daelim Corp fleet comes under AMSA scrutiny

Daelim is based in South Korea. Credit: Dietmar Hasenpusch

South Korea-based Daelim Corp is facing greater scrutiny of its vessel operations by Australian authorities after its 81,920 dwt vessel DL Carnation was issued with a 12-month ban by the Australian Maritime Safety Authority (AMSA) for breaching the Maritime Labour Convention (MLC).

The Panama flagged bulk carrier, which was built at Jiangsu East Heavy Industry in 2014, has been banned from entering or using any Australian port for 12 months after an AMSA surveyor attending the vessel in Gladstone, Queensland, discovered that it was maintaining two different sets of accounts and was underpaying crew. The records going back to at least April of this year show that the crew were being underpaid by more than USD17,000 a month.

“By maintaining multiple accounts of wages it demonstrates a knowledge and intent to not only withhold wages but to also actively deceive authorities,” AMSA’s general manager of operations, Allan Schwartz, said. “This is completely unacceptable behaviour and will not be tolerated in Australia.”

AMSA was alerted to the issue of wage discrepancies by the International Transport Workers’ Federation on 8 September and began an investigation that led to the vessel’s detention. The Australian authorities confirmed that the outstanding wages had been paid to the crew on 14 September, and the vessel was released from detention at 1430 h local time.

“For a first breach AMSA’s response would normally be to detain the vessel until the problem is rectified,” Schwartz said. “In this case, given the concerning existence of fake accounts and the intent to deceive authorities, AMSA has decided to issue a 12-month ban to DL Carnation and will increase inspections for all other vessels belonging to this company.

“AMSA takes a zero tolerance approach to the mistreatment of crew and all vessels coming to our shores should be aware of the consequences. Shipping companies should be aware that AMSA has the power to ban entire fleets if we uncover systemic issues within an operation and will not hesitate to do so where deliberate non-compliance is uncovered,” Schwartz added.

Contact Namrata Nadkarni namrata.nadkarni@ihsmarkit.com

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