Confederate raider CSS Alabama encountered and sank the United States Navy steamer USS Hatteras off Galveston Lighthouse in Texas.

USS Hatteras of 1,126 long tons (1,144 t) was commanded by Captain Homer C. Blake and was assigned to the West Gulf Blockading Squadron off Galveston, Texas.

At about 3:00 pm on January 11, 1863, Hatteras was on blockade duty with USS Brooklyn and five other vessels[2] off Galveston when a sail was sighted above the horizon.

But just as the launch shoved off the Confederates shouted "We're the CSS Alabama", raised their colors, and opened fire with a heavy broadside on the portside of the Union vessel.

After sinking the Union steamer the Confederates sailed for the South Atlantic, they were chased unsuccessfully by some of the Galveston blockaders but no further fighting occurred.