A third crewman from a cargo ship that capsized this week off the coast of Japan has been found alive after he was spotted by a search plane, Japan’s coastguard says.

The man, 30-year-old Filipino Jay-nel Rosals, was found on a life raft waving for help 2km off Kodakarajima, a small island in Japan’s southern Kagoshima prefecture, the coastguard said on Friday.

He was conscious and was able to walk when the coast guard rescued him.

Rescuers also found an overturned orange lifeboat floating at sea 4km off Kodakarajima but no one was found on that boat.

Rosals was only the third crew member to be found so far from the Gulf Livestock 1, which capsized in the East China Sea on Wednesday and is believed to have sunk.

Grave fears are held for two missing Australians, one of whom has been identified as Lucas Orda, an onboard vet.

The ship, with 43 crew on board and a cargo of 6000 cattle, had sent a distress call amid strong winds and heavy seas whipped up by Typhoon Maysak.

Earlier on Friday it emerged the vessel had a history of mechanical issues.

Rosals’ rescue came hours after another crewman died after being pulled unconscious from the water by the coastguard.

The search is still on for the remaining 40 crew members.

Rescuers have also found a life jacket and cattle carcasses in the area where the ship is believed to have sunk.

Gulf Livestock 1, owned by UAE-based Gulf Navigation, lost engine power before it was hit by a massive wave, according to Chief Officer Sareno Edvarodo, who was rescued on Wednesday.

Edvarodo, a 45-year-old Filipino, remains in hospital.

The crew was made up of 39 people from the Philippines, two from New Zealand and two from Australia, the coastguard said.