Grace entered Lloyd's Register (LR) in 1812 with Smith, master, changing to J. Kerr, and Bond & co., owner.

[5] Grace was under the command of Captain Robert Lethbridge when she left Sydney on 19 February 1822 carrying a cargo of whale oil and wool.

During the journey, which took 14 weeks, gales badly battered Grace; the oil sprung a leak and saturated the wool, which with the movement eventually spontaneously combusted.

While five men stayed on board to fight the fire, douse the hatches and keep them sealed, the remaining passengers and crew stood off in a longboat, towed behind Grace.

[1][6] While most of the mail was lost, dispatches from Governor Macquarie were saved and for doing so, Captain Lethbridge was awarded 1,000 acres (4.0 km2) at Bridgeman, near Singleton, when he settled in New South Wales in 1825.