This is the shocking moment a fishing vessel smashed into a packed ferry at a port in the Philippines.

Dramatic footage shows the smaller fishing ship ramming into the bow of the MV Penafrancia VI in a head-on collision off Lucena City in Quezon province on July 3.

The ferry, operated by Starhorse Shipping Lines, was carrying 82 passengers and 18 crew members when the crash occurred minutes after departing from Talao-Talao Port.

The Philippine Coast Guard (PCG) Lucena substation said it immediately responded to the incident and ordered the ferry to return to port for investigation.

The Coast Guard District Southern Tagalog said in a statement: 'The PCG assisted in unloading passengers and cargoes from MV Penafrancia VI at Port of Talao-Talao. They were transferred to MV Penafrancia IX for medical checks and cargo assessment.

'MV Penafrancia VI of Starhorse Shipping Lines, had 18 crew and 82 passengers, while FV Sr. Fernando II of FA III Sea Fishing, had 16 crew including the Master — all were found safe and in good condition.'

Photos taken after the crash showed dents on the hulls of both vessels. The ferry sustained damage to its starboard bow and ramp, while the fishing boat had forward bow damage, the PCG said.

Authorities said there was no threat of an oil spill.

The Philippine Ports Authority said the fishing vessel, which had come from Tayabas City, made an error by steering towards the path of the departing ferry.

The owners of both vessels have reached a settlement, officials said.