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A major air and sea rescue operation has been mounted after the upturned hull of the vessel was spotted off the north coast of Scotland this afternoon.
But hopes of finding any survivors are rapidly diminishing as weather conditions in the area continue to deteriorate as darkness falls.
The upturned hull of the Cemfjord, a cargo ship registered in Cyprus, was spotted by a passing passenger ferry at 2.30pm today. It is understood that there were eight people onboard.
The 83-metre ship, which was carrying cement from Denmark to Runcorn, Cheshire, is now drifting in freezing waters of the Pentland Firth - 15 miles north-east of Wick.
A spokesperson for the Maritime and Coastguard Agency said: 'We have discovered wreckage but, at present, there are no survivors in the immediate vicinity.'
Bill Farquhar from RNLI Thurso said the last known position of the ship had been at 1.15 pm yesterday, adding: 'The weather at that time yesterday was pretty bad.
'I don't know what has happened after that. There was no mayday as such. It is very, very strange, especially with all the weather technology we have nowadays.'
He added: 'Whatever happened, it happened very rapidly.'
Shetland Coastguard are co-ordinating the search operation and immediately instructed four RNLI lifeboats from Wick, Thurso, Longhope and Stromness to comb the suggested location.
At the same time, the Coastguard Rescue helicopter from Shetland and an RAF rescue helicopter have also been scrambled to provide aerial back-up.
Other vessels in the area are also involved in the search. The Hrossey assisted with the search for around an hour, but has now resumed its journey to Aberdeen.
Mr Farquhar described the conditions tonight as 'very bad indeed'.
A lifeboat is alongside the upturned vessel, waiting for the arrival of a tug which will tow the ship back to land.
The Cemfjord was drifting at 5.2 knots, roughly 6 mph, according to readings on marinetraffic.com that were recorded yesterday. It left port in Aalborg, Denmark on December 30.
The Pentland Firth is a channel between the north tip of Scotland and Orkney that is known for strong tides and requires careful planning to sail, according to Sail North Scotland.
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