A ship carrying 1,900 Kia cars to the United States caught fire destroying cargo on board, the company said on Tuesday, according to Dow Jones.

According to Dow Jones, Kia said it doesn't expect direct financial losses from the incident which took place after the vehicle drifted on to an island near Japan.

The report did not mention the fate of the car transporter's crew.

"As the company has had the whole shipment insured, it will be compensated for the damages. It is just as if we sold our cars in the market," Kia Motors spokesman Lee Young-Kyu told Dow Jones.

Citing Lee, Dow Jones said Kia Motors doesn't expect any delay in delivering the cars to customers in North America as it has more than three months of inventory supply for the region.