As western Atlantic coastal convoys brought an end to the second happy time, Admiral Karl Dönitz the Befehlshaber der U-Boote (BdU) or commander in chief of U-boats, shifted focus to the mid-Atlantic to avoid aircraft patrols.

[3] Forty-seven ships departed New York City on 3 October 1942 and were met by Mid-Ocean Escort Force Group B-6 consisting of the E and F-class destroyer Fame and V and W-class destroyer Viscount, with the Norwegian-manned Flower-class corvettes Potentilla, Eglantine, Montbretia, and Acanthus and the convoy rescue ship Goathland.

U-607 torpedoed the Greek freighter Nellie, which later sank, but was itself attacked and severely damaged, and was forced to return to France for repairs.

No identification was made, or result credited, but post-war examination shows that U-254 was severely damaged in this attack and forced to retire to base.

On 16 and 17 October SC 104 came in range of allied air patrols, long–range B-24 Liberators and Catalina flying boats.