Shipments of goods and produce aboard the Bermuda Islander will be delayed for two weeks after the container vessel broke down off the US east coast.

The ship has had to be towed to Florida and will be out of action for a month, forcing shipping agents to source an alternative vessel.

The Bermuda Islander encountered "mechanical problems" shortly after departing New Jersey last Tuesday. Sources in shipping say a fire was reported, but Stephen Paynter of agents Meyer Shipping, last night dismissed this as "rumours".

"There was a major mechanical breakdown," he said. "We are not sure what caused it at this particular point. We won't know until the ship is inspected in port. But she had no power at all.

"Talk of a fire seems to be rumours at the moment. We haven't heard anything like that from the carrier's line managers (Bermuda International Shipping Ltd)."

The crew of the Bermuda Islander a 2,937 gross tonne, 100 metre-long container ship, reported problems on Wednesday, a day after departure from the east coast.

The vessel was due to arrive in Bermuda on Thursday but is currently under tow, en route to Fernandina Beach. Once in dock, cargo will be transferred to an alternative ship.

Mr. Paynter, freight department manager, said it was hoped the ship will arrive today and the containers transferred to the company's Somers Isles which will arrive for its regularly scheduled trip on February 25.

Mr. Paynter said: "The dry cargo shouldn't be a problem but there is some concern about produce with a limited shelf life. There could be problems there."

He said customers can either apply for compensation through their underwriter or directly to Bermuda International Shipping Ltd.

"Each case will be handled on its own merits," he said.

Meyer Shipping is now to use an alternative container vessel until the Bermuda Islander is repaired.

"We have secured the Rio Para," said Mr. Paynter. "She will perform four voyages from Salem, New Jersey, from February 23 and will pick up from Bermuda Islander's voyage number 1050.

"So from Monday we should be able to perform the same service as we had before, with Thursday arrivals on the Island each week.

"The Rio Para will continue until such time as the Bermuda Islander has been checked and repaired. At the present time that is estimated to be about four weeks."