The Condor Liberation has been impounded in Poole after an inspection carried out yesterday found that the ferry had "substantial deficiencies."
The UK's Maritime and Coastguard Agency won't let the £50 million ferry leave the UK until it's fit to sail.
The MCA have issued the following statement: "Following a joint EU inspection by the Southampton Marine Office and French Affaires Maritime Port State control colleagues, the Condor Liberation has been detained in Poole after substantial deficiencies were observed by MCA inspectors.
"Following formal detention, the flag state and their recognised organisation are responsible for primary oversight and rectification of deficiencies. Once they are content, they will invite the Port State (MCA) to reattend to verify the same."
The Bahamas is the flag state for the ship so it is responsible for overseeing the work.
Condor Ferries have issued the following statement: "Condor’s engineers have been working on non-sailing days to rectify the faults on Condor Liberation which have affected recent sailings. This includes work on the propulsion and steering systems.
"The MCA and Affairs Maritimes conducted a joint, routine inspection on Tuesday 15 March whilst this repair work was underway and as a result issued a Detention Order. Until the issues identified are resolved and the repairs are complete, the ship is unable to sail."
Legal advice is already being taken about options over Condor's contract which still has another eight and a half years to run.
The ferry has been beset by difficulties and breakdowns since it came into operation and the Economic Development Minister Lyndon Farnham told Bailiwick Express that he, like many Islanders, had run out of patience with the ferry firm.
Senator Farnham said he has asked lawyers to explore what options he has as minister.
Condor’s contract was put together by the Economic Development Department, the Ports of Jersey and the Law Officer's department and was signed in August 2014.
Senator Farnham said there are performance measures and either party can break the contract with an agreed run-off period.
Condor Ferries is due to give another update on the Condor Liberation at 2 pm today.
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