SS Yankee Blade was a three-masted sidewheel paddle steamer belonging to the Independent Line (a holding of Cornelius Vanderbilt).

[3] She was one of the first steamships built to carry gold, passengers, and cargo on the second leg of the journey between New York City and San Francisco via the Isthmus of Panama.

[1] Yankee Blade was commanded by Captain Henry Randall, who had worked for a competitor of the Independent Line, the Pacific Mail Steamship Company, until his retirement two years before in 1852.

Also leaving San Francisco for Panama was the steamship Sonora, with whom it is probable the captain of the Yankee Blade was engaged in an unofficial race.

On the previous day, the Daily Alta California had an advertisement alleging a $5,000 bet that Yankee Blade would beat Sonora to Panama.

[1] Once both ships left the confines of the San Francisco Bay, Sonora headed out to sea to take the longer but safer route well offshore, away from any dangerous navigational hazards.

Shortly after 3:00 p.m. on Sunday, October 1, 1854, Yankee Blade struck a rock pinnacle approximately 1 nautical mile (1.9 km; 1.2 mi) offshore.

In a move that was later found to be very controversial, Captain Randall himself took command of one of the lifeboats, leaving his unqualified teenage son in charge of the ship.

[1] The next day, Goliah still was progressing slowly along the coast when she came upon the forward section of Yankee Blade, still filled with the great majority of the ship's passengers.