The Chinese-flagged Yu Zhou Qi Hang was transporting three cranes from Keelung, in northeast Taiwan, to China on Tuesday when it stalled in wild weather, Taiwanese authorities said.
A Taiwan coast guard vessel was deployed to rescue the 17 crew and the Chinese ship drifted to the shore of Yehliu Geopark, northeast of Taipei, where it ran aground.
The Yu Zhou Qi Hang was carrying 247 tonnes of heavy fuel oil and 37 tonnes of light diesel oil, the coast guard said.
An AFP photographer on Friday saw red cranes above the water, one leaning heavily and touching the rocky shore, while the Yu Zhou Qi Hang was submerged.
Tracking website vesselfinder.com said the ship was a 143-metre long heavy load carrier built in 2012.
Authorities hoped to start recovering the oil on Friday afternoon, an official in the Maritime and Port Bureau told AFP.
The Ocean Affairs Council estimated it would take two to three days to finish, with its minister, Kuan Bi-ling, saying no oil had been detected leaking from the ship.
"I saw early this morning that there was no oil pollution at the scene," Kuan said in a Facebook post on Friday.
"Nature is merciful and the oil tank was not damaged," Kuan said, adding that oil spill containment booms had been deployed.
Kong-rey made landfall in eastern Taiwan on Thursday as one of the biggest typhoons to hit the island in decades, forcing thousands of people to flee their homes.
At least two people were killed and 580 were injured as the storm pounded the island with fierce winds and torrential rain, before weakening Friday to a severe tropical storm as it crossed the Taiwan Strait.
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