The general cargo ship Industrial Kennedy which broke down 120 miles north-west of Sumburgh yesterday morning is now being towed into Lerwick.
The Gibraltar-registered ship reported a turbo charger problem shortly before 8am, and stopped the engines to avoid further problems.
The ship had been travelling from Gibraltar to Norway carrying a load of steel pipes when the incident started and the coastguard alerted.
Herakles, the coastguard tug, took the ship under tow and headed initially to Scrabster, but the harbourmaster refused entry to the harbour. The vessels are now expected into Lerwick around 6am tomorrow.