A handysize bulker lost power off the north of New Zealand early this morning, but is now anchored in deep water outside Tauranga Harbour.

Maritime New Zealand (Maritime NZ) deputy director safety and response systems, Nigel Clifford, said no pollution has been reported from the vessel, nor any injuries to the crew.

The incident involving the 39,784-dwt Funing (built 2015) took place in the shipping channel at Port of Tauranga between Mauao (Mount Manganui) and Matakana Island.

Tauranga is the largest town in the Bay of Plenty on the east coast of the North Island of New Zealand.

"Due to the situation and conditions at the time, the vessel put down anchors to secure its position," a spokesperson for the vessel's owner The China Navigation Company told TradeWinds.

"A harbour pilot was on board at the time and port tugs responded to secure lines to the vessel. All crew aboard onboard have been reported as safe."

Tauranga port authorities are said to have established a response centre to manage the event, while New Zealand’s maritime regulator has set up a separate team to provide coordination and support.​

The Singapore-flagged vessel was reportedly outbound to China with a cargo of logs when the incident occurred just after midnight on Sunday.

“The vessel appears to be on the edge of the shipping channel. The seabed at that point of the channel is sandy. Twenty crew are on board, plus a maritime pilot from Port of Tauranga,” Maritime NZ said.

“Weather and sea conditions at the time of the engine failure were fairly poor, with a 30 knot wind and significant swell.”

The forecast for Monday’s weather is for the wind and swell to ease throughout the day.

The Funing​’s propeller and rudder will reportedly be inspected by divers as the vessel is believed to have made contact with a marker buoy at the harbour entrance.

Maritime NZ is investigating the incident and the Funing will not return to port until authorities give permission.