An oil slick approximately 50 kilometres long is washing up on south-east Queensland beaches after shipping containers fell off a cargo ship during Tropical Cyclone Hamish.

31 shipping containers, each with 20 tonnes of ammonium nitrate, were lost from the MV Pacific Adventurer off North Stradbroke Island on Wednesday. One of the containers pierced the hull when it fell off the ship and about 100 000 litres of oil escaped.

The oil slick is affecting the coast from Moreton Island in the south to Marcoola in the north. Already there are reports of dead fish washing up on the Sunshine Coast beaches. Sea birds, turtles and pelicans are also being found coated in black oil.

The company that own the Hong Kong registered vessel, Swire Shipping, said in a statement last night that it would co-operate in the investigation and clean-up. They claim to be flying an oil spill expert in from the Middle East to oversee the operation.

"The company very much regrets the environmental impact caused as a consequence of the vessel being caught in cyclone Hamish," the statement read. "The company and its insurers will meet all their responsibilities. It has chartered a helicopter to survey the extent of the oil slick and to try to locate the containers."

The oil slick is the most pressing concern however none of the 31 containers containing ammonium nitrate have been retrieved. Helicopter flyovers failed to spot any of the containers and it's believed they have all sunk to the bottom. If they have sunk the containers will corrode causing further environmental damage. The ship was in at least 100 metres of water when it lost the containers so a salvage mission is highly unlikely.// STUART NETTLE