Officials have confirmed that four died and more than 25 were injured at sea at the start of the Emancipation day holiday in what was described as one of the most "heartbreaking catastrophes" to ever strike The Bahamas.
Rescuers from the coastguard, the Royal Bahamas Defence Force and the Royal Bahamas Police have ended a search for more victims, believing everyone on the two ships was accounted for.
The coastguard initially said six people died in the collision but later amended the toll to four.
16 people were evacuated by helicopter from the scene to medical facilities in the Bahamian capital of Nassau, officials said. At least 25 people were injured altogether.
What started off as a great time of fun and frolic for Bahamians of all ages turned into a "regretable calamity" marred by tragedy after the 98-foot Sea Hauler, transporting about 195 people to Cat Island for the annual regatta on its regular route from Eleuthera to Nassau, collided with the 170-foot cargo vessel United Star before 0530 GMT, coastguard spokeswoman Carleen Drummond said.
US Coast Guard units responded to the accident scene from Miami and Clearwater, Florida, and searched the area with ships, an aeroplane and helicopters.
The Bahamas, a nation of about 290,000, is made up of some 700 islands and cays stretching through the Atlantic Ocean from just off Florida's east coast to just north of Haiti.
The United Star took some passengers and crew from the Sea Hauler on board and was towing the crippled ferry to Nassau, the coastguard said.
There was no immediate word on the cause of the accident and Bahamian authorities were investigating, Ms Drummond said.
