A ferry has collided with at least two yachts in the Isle of Wight while trying to berth at the entrance of Cowes Harbour during heavy fog.
He said you can see a mast sticking out the water where a small vessel sunk after a collision.
Red Funnel said the ferry, named Red Falcon, is watertight and injuries have been sustained by the 40 passengers on board.
A witness waiting to board the Red Falcon at East Cowes told our sister newpaper County Press the vehicle ferry hit the yachts coming in to East Cowes and was unable to berth, leaving passengers from Southampton onboard the ferry.
"Attempts to refloat the vessel are now underway on a falling tide".
They added another attempt will be made at high tide if this prove unsuccessful. "Cowes harbour has now reopened and Red Funnel's Red Jet Southampton-West Cowes service will resume shortly".
The UK Coastguard said that the Cowes RNLI lifeboat, Calshot RNLI lifeboats and coastguard rescue teams from Bembridge, Needles and Ventnor were involved in the "extensive search".
AN INVESTIGATION has been launched after the Red Funnel vehicle ferry, the Red Falcon, hit moored yachts, ran aground and prompted a search and rescue mission.
The Red Falcon ferry is also thought to be hard aground - meaning that it's keel is lodged and it can not move at all.
The Royal National Lifeboat Institution (RNLI) launched a three rescue boats after a member of the public called 999, reporting cries for help from the water.
Image: There were more than 50 passengers on the ferry.
A catamaran was hit and two yachts were later found drifting outside the harbour following the incident, which happened at around 5.30am.
Last month, the Red Funnel's "Red Eagle" was reported to have ploughed through moorings in Cowes Harbour, cutting several boats adrift into the Solent, and damaging a signpost.
Red Funnel, which styles itself as the "original Isle of Wight ferry operator", carries 3.4 million passengers each year.