The Associated Press says a North Korean-flagged ship being tracked by the U.S. military appears to be carrying small arms cargo banned by a new U.N. resolution.

Quoting a South Korean intelligence official, the AP said Tuesday that his agency believes the Kang Nam-One cargo vessel is sailing toward the Myanmar city of Yangon.

According to Fox News, the ship is currently sailing some 320 kilometers south of Shanghai. The report added that the USS John McCain is closely tailing the North Korean ship.

The American cable news channel quoted a U.S. intelligence official as saying the Kang Nam appears to be headed for the Strait of Malacca and may possibly have to refuel in Singapore.