The freighter, called the Orange Sun, and a dredging vessel carrying seven people collided just before 2 p.m. A third vessel got out of the way just in time, said Coast Guard spokesman Seth Johnson.
As a precaution, five people were evacuated from the dredging vessel, which was taking on water, and two remained on board, officials said.
The Orange Sun was on its way to a nearby pier, being escorted by two tug boats, at the time of the collision, Johnson said.
Newark Bay was closed indefinitely.
