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To conserve coal, the ship was towed by the steamer Koonya to the Antarctic ice, after Shackleton had persuaded the New Zealand government and the Union Steamship Company to share the cost.
In accordance with Shackleton's promise to Scott the ship headed for the eastern sector of the Great Ice Barrier, arriving there on 21 January 1908.
They found that the Barrier Inlet had expanded to form a large bay, in which were hundreds of whales, which led to the immediate christening of the area as the Bay of Whales.
It was noted that ice conditions were unstable, precluding the establishment of a safe base there.
An extended search for an anchorage at King Edward VII Land proved equally fruitless, so Shackleton was forced to break his undertaking to Scott and set sail for McMurdo Sound, a decision which, according to second officer Arthur Harbord, was " dictated by common sense " in view of the difficulties of ice pressure, coal shortage and the lack of any nearer known base.

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