UPDATE 11.50AM: The log carrier that lost power at the entrance to Port of Tauranga this morning is now safely anchored in deep water outside Tauranga Harbour.

"Port of Tauranga is now open for shipping," says a Port of Tauranga spokesperson.

"The Funing​'s propeller and rudder will 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.

"The Port of Tauranga pilots have now disembarked the vessel and tug boat support is no longer required."

EARLIER:

A log carrier that lost power at the entrance to Port of Tauranga this morning is being moved to deeper water in the shipping channel away from land.

The ​Funing drifted to the edge of the channel at the base of Mauao after its engines failed about 12.30am.

"The vessel is believed to have made contact with a marker buoy in the channel so divers are on the way to check the Funing's propeller and rudder before any attempt is made to restart its engines," says a Port of Tauranga spokesperson.

"The ship's hull is understood to be intact and there is no pollution. About 20 crew members and two Port of Tauranga pilots remain on board and there are no reported injuries."

The ship is being held by two anchors and two Port of Tauranga tug boats are in attendance.

"Weather and sea conditions are improving.

"Shipping remains suspended at Port of Tauranga and updates will follow as further information becomes available."