On 7 October 2004 two crew members were killed and three others seriously injured when Lowlands Grace's port lifeboat became detached from its falls during a lifeboat drill. The ship, a Hong Kong registered cape-sized bulk carrier, was at anchor off the port of Port Hedland, Western Australia, at the time of the accident.

Investigation revealed that the lifeboat's after hook had failed where it was attached to the keel while the boat was being lowered. The lifeboat's stern had then dropped and the boat rotated around the remaining forward fall before the forward hook opened under the load of the swinging boat. The lifeboat then fell upside down into the sea approximately 16 metres below.