The Pasha Bulker bulk carrier could be written off by insurers due to the damage caused when it ran aground off Newcastle, in New South Wales, in June.

A report, released by Lloyds Marine Intelligence Unit in London this week, says the Japanese owners have met with their insurers to discuss the fate of the vessel.

It is understood both are considering declaring the ship a constructive loss due to the extent of repairs needed to its hull.

Temporary repairs were made to the 225-metre bulk carrier in Newcastle after it was refloated in July.

Since then, it has been sitting off the coast of Hon Khoi, in southern Vietnam, and no further work has been carried out.

The ship was only commissioned last year but could be broken up for scrap metal if it is written off.