Shipping Company Fined $1.75 Million For Dumping Oily Waste Off U.S. Coast

Shipping Company Fined $1.75 Million For Dumping Oily Waste Off U.S. Coast after admitting to deliberate violations of U.S. environmental law. Connecticut-based Eagle Ship Management LLC (ESM) pleaded guilty under the Act to Prevent Pollution from Ships (APPS) following a federal investigation into the Gannet Bulker, a bulk carrier that illegally discharged thousands of gallons of oily wastewater near New Orleans. The case, uncovered by a whistleblower, has exposed not only environmental violations but also retaliation and evidence tampering by company officers.

Eagle Ship Management Faces $1.75 Million Fine

The Incident That Sparked a Criminal Case

The Gannet Bulker, a 57,800 dwt foreign-flagged vessel, was anchored near the Southwest Passage of the Port of New Orleans in March 2021. A repair attempt on the ballast water system went wrong, leading to engine room flooding. Instead of properly handling the contaminated bilge water, senior officers bypassed pollution-control systems and discharged an estimated 10,303 gallons of oily waste directly into the sea.

This discharge posed serious environmental risks, polluting the waters where the Mississippi River meets the Gulf of Mexico, a region already vulnerable to industrial waste and oil-related damage.

How the Violation Came to Light

The case may never have been exposed if not for the courage of a crew member who reported the illegal activity through social media on March 14, 2021. The whistleblower detailed how bilge water was pumped overboard under the cover of night. His report also warned that the flooding created severe onboard hazards, including the risk of electrical failure, power outages, and steering system breakdowns.

The U.S. Coast Guard quickly launched an investigation, uncovering evidence that not only confirmed the dumping but also revealed a systematic effort to cover up the incident.

A Culture of Retaliation and Deception

Court documents revealed that Eagle Ship Management officers retaliated against the whistleblower instead of protecting him. Fabricated and backdated performance reviews were created in an attempt to discredit his testimony. The crew member faced intimidation and threats for speaking out — a clear violation of whistleblower protection principles.

In addition to retaliation, investigators uncovered a web of obstruction:

• Senior officers lied to Coast Guard officials about the cause of the flooding and the discharge.

• A computer printout from the engine control room, containing crucial data, was deliberately destroyed.

• Crew members were ordered to delete evidence from their phones.

• The ship’s Oil Record Book — a legal requirement under MARPOL — was falsified to hide the dumping.

These actions went far beyond negligence. Prosecutors argued that Eagle Ship Management engaged in a deliberate cover-up to avoid accountability.

The Chief Engineer’s Separate Prosecution

Chief Engineer Kirill Kompanietes, directly responsible for overseeing the dumping operation, was prosecuted separately. He pleaded guilty in 2022 to both the illegal discharge and obstruction of justice. Kompanietes was sentenced to one year and one day in federal prison for his role in orchestrating the pollution and directing others to destroy or falsify records.

His conviction highlighted the chain of deception onboard the Gannet Bulker and further implicated Eagle Ship Management in fostering an environment where illegal practices were tolerated.

Legal Penalties and Probation Terms

Under the plea agreement, Eagle Ship Management must pay a $1.75 million criminal fine and will serve four years of probation. As part of the probation, the company will be required to undergo independent environmental compliance audits by external experts. These audits are intended to ensure future adherence to MARPOL and APPS regulations, though critics argue they come too late to undo the damage already caused.

The Department of Justice’s Environment and Natural Resources Division called the company’s actions a serious breach of U.S. law, noting that both the pollution itself and the attempted cover-up represent major offenses.

Broader Impact on the Shipping Industry

The Eagle Ship Management case has sent shockwaves through the maritime community. Industry experts warn that it reflects a broader issue of weak compliance and the risks of prioritizing cost-cutting over environmental responsibility.

The U.S. Coast Guard Investigative Service (CGIS), which played a key role in the investigation, reaffirmed its commitment to pursuing similar cases aggressively. An official from the CGIS Gulf Field Office emphasized that illegal discharges will not be tolerated and that whistleblowers must be protected as critical guardians of maritime integrity.

Environmental watchdogs argue that this case highlights the need for stronger global enforcement mechanisms. With shipping responsible for transporting more than 80% of global trade, compliance with pollution prevention rules is essential for safeguarding oceans and coastal communities.

Eagle Ship Management’s Tarnished Reputation

For Eagle Ship Management, the guilty plea represents more than just financial loss. The company’s name is now tied to one of the most publicized MARPOL violation cases in recent years. Clients, regulators, and industry stakeholders will likely scrutinize its future operations closely, and rebuilding trust will be an uphill battle.

Probation terms may prevent further violations, but the reputational stain will linger. The company’s treatment of the whistleblower, in particular, may deter seafarers from trusting management in the future — a dangerous precedent in an industry that relies heavily on transparency and compliance at sea.

Conclusion

The guilty plea by Eagle Ship Management marks a decisive moment in maritime law enforcement. By fining the shipping company $1.75 million for dumping oily waste off the U.S. coast, the courts have sent a strong message: pollution and cover-ups will be met with serious consequences.

Yet, the case also raises uncomfortable questions about the culture of silence in shipping, the protection of whistleblowers, and the adequacy of current compliance systems. Until companies like Eagle Ship Management make meaningful reforms, the risk of similar environmental scandals remains high — with oceans, coastal communities, and maritime workers paying the ultimate price.