Officials said four crew members have already been hoisted from the MSC Monterey, which is located about 60 kilometres south of Portugal Cove, by two Cormorant helicopters out of 103 Squadron Gander.
Several aircraft and a Coast Guard vessel were deployed to help with the rescue after the ship sent out a distress call at about 11 a.m. local time. Officials said the crew reported a problem with the ship's hull and said the vessel was in danger of breaking apart.
The crew will be transported to an RCMP casualty reception point in Portugal Cove South following the rescue.
Officials said it doesn't appear anyone was injured.
The ship's point of origin has not been determined.