Nella Dan dragged her anchor and was driven aground just metres off the island,[2] while transferring fuel from the ship to the sub-Antarctic station.

A definitive cause of the accident was never determined, it was reported that Nella Dan dragged her anchor in very heavy seas while at the normal anchorage point in Buckles Bay.

Damage to the vessel was immediate and serious, the ship's hull was holed in two places and water flooded the engine room.

[2] Several members of the 35 Water Transport Squadron attached to ANARE sailed three LARC (Light Amphibious Resupply Craft) to evacuate the Antarctic expeditioners and ship's crew still on board.

For these actions, soldiers Philip Wharton Clark, Kenneth Stanley Barrington, Dudley Raymond Crowe, Timothy Gay, Gregory Dale Kenny, and Alistair Andrew Scott were awarded a Group Bravery Citation by the Australian Governor-General Quentin Bryce on 17 August 2009.

At the time of the accident, Icebird, another vessel chartered by the Australian Antarctic Division, was returning to Hobart from Davis Station in Antarctica.

This was intended to add sufficient weight to the hull to hold it in position on the rocks and prevent further damage or movement back out to sea.