Commodore Alejandro Flora, Coast Guard chief in the district, said initial reports showed the MV Princess of the Universe was trying to avoid fishing vessels when it ran aground near Canigao island, about 640 kilometers southeast of Manila.
"It was a human error that caused the incident," he said.
Flora said tugboats have been sent to tow the 13,527-ton ship, owned by Sulpicio Lines.
The incident happened at dawn, when the third mate — the most junior officer — was on watch, he added.
Coast Guard spokesman Joseph Coyme said the Princess of the Universe immediately listed to starboard, or right side, at about two degrees as the mid-section of its keel rested at the seabed.
"No one was hurt," he said. "All passengers and crew were safely rescued."
Coyme said they would investigate the vessel’s captain, Rito Nieri, who could be held liable based on reports that he had made a faulty maneuver of the ship.
The Coast Guard will be assisted by Malayan Towage and Salvage Corp., which was hired by Sulpicio Lines, in towing the ship, he added.
The Coast Guard said tugboats were already sent to tow the ferry, which carried a total of 735 passengers, 85 crewmembers and 3,853 tons of cargo. The tug boats were expected to arrive in the area at noontime yesterday.
Initial investigation showed the ship was on its way to Cebu City when it encountered huge waves at around 1:05 a.m. about a half kilometer southwest of Surigao.
Investigators also found out that Nieri tried to extract the vessel from grounding. — Edu Punay, AFP