The Canadian Coast Guard said it was monitoring the disabled cargo ship MV Thorco Crown approximately 32 nautical miles off the coast of Port aux Basques, Newfoundland on Tuesday.
The cargo ship currently poses no immediate danger to the environment or crew, the Coast Guard said.
The Canadian Coast Guard Ship (CCGS) Sir William Alexander is on scene with the cargo ship and a Coast Guard Environmental Response is monitoring the situation.
The owners of the Thorco Crown have arranged to tow the vessel on Wednesday.
The 10,500 dwt Thorco Crown is flagged in Antigua and Barbuda.