CAIRO—An Egyptian official says one of the world's largest container ships had a malfunction while in the Suez Canal and began taking on water, forcing authorities to remove it from the traffic lane because it was in danger of sinking.

Canal traffic director Ahmed el-Manakhly said the Danish-built Emma Maersk, which carries some 10,000 shipping containers, was taken to the eastern terminal of Port Said on the Mediterranean end of the Canal, where crews were working to pump water out of the engine room. He did not elaborate on the nature of the malfunction.