Over three nights in November 1940, the German minelaying ship Passat, a captured Norwegian tanker, had strategically planted 110 sea mines in Bass Strait, a busy trade route between Tasmania and Victoria.

[4] On 8 November 1940, City of Rayville sailed into the Bass Strait with a cargo of 1,500 tons (37,520 bars) of Port Pirie lead.

This preceded the attack on Pearl Harbor, in December 1941, by more than a year, and resulted in the death of the first US seaman in World War II.

The site of the wreck is approximately 14 kilometers (8.7 mi) south of Cape Otway, with the vessel at a depth of 70 meters (230 ft).

In memory of this event, a group of villas in the little village of Apollo Bay (15 kilometers (9.3 mi) from Cape Otway), is named Rayville Boat Houses.