Japan's Coast Guard sent out patrol boats to search for 65 year old Hideo Okamoto, the ship's chief engineer whilst the other three members of the crew were rescued by a passing ship.
A kilometre-long oil slick has been reported at the site of the collision.
The 1208 ton YINHE NO.1 sustained damage in a number of areas on its bows and port side but was able to reach Tanabe Port despite taking on water.
The 313 ton EIFUKU MARU NO.7 was on her way to Wakayama Port with around 1000 tons of scrap iron after having left Kinuura Port in Aichi Prefecture on the Friday evening.