The owner of the Chinese bulk carrier Shen Neng 1 that ran aground on Douglas Shoal in Queensland on April 3 says “proper and adequate” hull and liability insurance is in place to cover fines and clean-up costs.

The ship was carrying 68,000 tonnes of coking coal and 950 tonnes of fuel when it ran aground on the Great Barrier Reef, 70km east of Great Keppel Island, after travelling more than 13 nautical miles off course.

The Shenzhen Energy Transport Company says the ship was “entirely within legal waters” but simply failed to alter course. It has since emerged the route taken by the ship’s captain is a shortcut well known in the shipping industry.

The company and the ship’s captain now face millions in fines and clean-up costs to protect the area from contamination.

The ship’s captain could be charged with negligence for steering the tanker off an authorised shipping lane.

The Shen Neng 1’s insurer is the London P&I Club, which is handling the claim from its Hong Kong office. The ship is covered for liabilities up to $20 million, according to London-based A Bilbrough and Co, which manages the P&I club.

The London P&I Club and the Shenzhen Energy Transport Company have appointed oil pollution experts ITOPF and salvage group Svitzer to manage the clean-up exercise.