Over the last weekend, following a tip, the Greek authorities stopped Tanzanian-flagged freighter "Andromeda" off the southern island of Crete and seized its cargo of 410 tons of explosives.
The coastguard seized the vessel and discovered 29 containers carrying explosive materials such as ammonium nitrate, including non-electric detonators and 11 empty liquefied petroleum gas tanks.
European Union and United Nations-imposed arms embargoes have prohibited the sale, supply or transfer of arms to Libya since 2011.
"The materials were headed to Libya", Rear Admiral Ioannis Argiriou told reporters.
The ship and ship's cargo were confiscated and the ship taken to the Cretan port of Herakleio.
The skipper of the crew has admitted after questioning that he had been ordered by the ship's owner to sail to the Libyan port of Misurata and not to Djibouti, the destination listed in the ship's itinerary.
"The ship had been a moving bomb that could have had unforeseeable repercussions on people and the marine", the Greek coastguard said to AMNA. The lack of sailing maps on the ship has also raised some serious concerns.
The eight-member crew has been arrested and will appear before a prosecutor on Thursday, according to Reuters.