The Royal National Lifeboat Institution (RNLI) launched three rescue boats after a member of the public called 999 reported the help cries for water.
A rescue operation is underway to search for "anyone in the water" after a shuttle "collided with at least two yachts" and ran aground in "heavy fog" in East Cowes.
It is believed that fog is a key element in the shock this morning, as a blanket is becoming thicker and thicker.
A yacht has been found in a sunken state.
The Isle of Wight radio reports that the tugboats have arrived on the scene.
A search and rescue helicopter was sent, but had to back down due to low visibility.
The editor of Island Echo, Darren Toogood, is on the scene and confirmed to MirrorOnline that the ferry ran aground.
He said that you can see a mast sticking out of the water where a small vessel sank after a collision.
He said: "People have heard cries for help, witnesses, there is a search to discard people in the water, the initial information was that the boat was moored, so they want to rule out that there are people there."
"The ferry has run aground completely, it's so close that I can get the shuttle's Wi-Fi connection, now there's high tide so it does not move for another 12 hours."
A spokeswoman for the UK Coast Guard said: "We have just finished dealing with the incident, there were no victims and the emergency services were not called.
"We can not provide more information at this time."
Red Funnel has not issued a statement yet.
The ferry transports passengers and vehicles between East Cowes and Southhampton.
But to continue …