@Ionus,
Ionus wrote: 221816MAR10 K ( 22nd 18:16 hrs March 2010 australian eastern standard time).
No problem with that - you're just "staying" within your once set nautical time zone (here: 'K').
On ships, navigation is done always in 'Z' (GMT/UTC).
The advantage for navigation certainly only happens when you use terrestrial navigational methods ...
Otherwise, it's of course convenient when all (units) use the same time zone, 'Z' within the NATO-forces (and local time when communicating with land, civil).