A cargo ship which sank off the coast of Germany in the early hours of this morning was based on the Isle of Wight, it has emerged.

Verity was owned by East Cowes-based Faversham Shipping, the Daily Echo's sister title Isle of Wight County Press reports.

It went down after colliding with another cargo ship, the Bahamas-flagged Polesie, at around 5am.

The body of one sailor has since been recovered while four remain missing. Two have been rescued. Follow live updates here.

Southampton-based Iona, which was in the area at the time, was involved in the rescue efforts.

Passengers onboard the P&O cruise ship praised the crew for helping search for survivors.

Daily Echo: The rescue operationThe rescue operation (Image: Gary Corbin)

Passenger Nica Quigley said she was woken up by an alarm at around 5.50am calling for rescue teams.

She said: “At 7am we had a brief explanation, nobody knew two ships had collided but just that we were assisting in a search and rescue."

Verity was on its way from Bremen in Germany to Immingham in Lincolnshire when it sank about 14 miles southwest of the German island of Helgoland.

The incident sparked a major emergency response, which at one point involved 14 tugs. 

Gary Corbin, another passenger onboard Iona, said all he could see from the ship were the vessels and helicopters involved in the search.

“Parts of the top deck have been closed off to the public as they are using it for the rescue,” he said.

Mr Corbin said life on the cruise ship carried on as normal during the rescue operation.

"I have not witnessed any panic. Only sadness to what has happened."

Ian Hardman said the crew displayed “impeccable professionalism”, adding: “My thoughts and prayers are with those lost at sea and for their families.”

Iona left Southampton on Saturday for Hamburg, Rotterdam and Bruges.

In a statement issued to confirm her involvement in the rescue, a P&O spokesperson said: “Iona is currently involved in a search and rescue operation off the coast of Germany.

“The incident is ongoing and Iona’s cooperation complies with international maritime law as well as being consistent with the company’s moral and legal obligations.

“Iona is scheduled to be at sea today and this event should have no impact upon tomorrow’s scheduled call to Rotterdam or the onward itinerary.”

Stuart Rivers, Chief Executive of Merchant Navy Welfare Board, based in Southampton, said: “We are deeply sorry to hear of this tragedy in Germany.

“Our thoughts and prayers are with the seafarers and the families at this difficult time and to those involved in the extensive rescue search. The MNWB is ready to support its colleagues at the German Seamen’s Mission, who have a presence both in the UK and Germany, to provide practical and pastoral support to those affected by this crisis.”

Iona was stood down at around 1.30pm.

She is expected to arrive in Rotterdam tomorrow as planned.