The Norwegian Dawn has apparently run aground, having stopped in its tracks while leaving Dockyard.
The cruise ship is believed to have come to a halt at about 6.10pm and Bermuda Radio is now assessing the situation.
A Bermuda Radio spokesman said: “There has been an incident with the Norwegian Dawn and her transit outbound to sea via the North Channel.
“She is stationed in the Channel and it looks like she may possibly have run aground.
“We are really just assessing the situation. We can report that there is no water ingress or any pollution at the moment.
“It is very early days at the moment. We will get the tugs out there and some divers in the water to assess the situation.”
According to a source who has contacts on the ship, the captain has apparently announced that the Norwegian Dawn is sitting on a reef.