At 01.01 and 01.05 hours on 15 June 1940, U-38 fired torpedoes at convoy HX-47 about 60 miles west of the Scilly Isles and sank the Italia and Erik Boye.

The Italia (Master Johan Karsten Hallén) was struck by a torpedo between hold #10 and the engine room, setting the afterpart on fire immediately, with the flames spreading forward and across the water at a tremendous speed and killing almost the entire engine crew. Eight men jumped overboard and another managed to get out through the porthole of his cabin. Boats were lowered and lifebelts thrown out from the bridge to those in the water. The officers amidships waited as long as they could in the hope that more people from the afterpart would be able to come forward, but had to abandon ship when the seas started to wash over the main afterdeck. The ship finally sank in 50°41N/08°52’30W in shallow waters with the bow visible over the water. In the afternoon the survivors were picked up by HMS Fowey (L 15) (Cdr H.B. Ellison, RN) and taken to Plymouth.