The M/V Esperanza Star caught fire at dawn while traveling from Siquijor province to Bohol province in the central Philippines, the coast guard said, AP reported.
It did not immediately say how many people have been rescued from the ferry or if there were casualties.
Sea accidents are common in the Philippine archipelago because of frequent storms, badly maintained vessels, overcrowding, and spotty enforcement of safety regulations, especially in remote provinces.
In March, a fire broke out and raged overnight on a ferry carrying about 250 people and killed at least 31 passengers and crew members off the southern island province of Basilan, the coast guard said.
In December 1987, the ferry Dona Paz sank after colliding with a fuel tanker, killing more than 4,300 people in the world’s worst peacetime maritime disaster.
AMK/PR