At 00.30 hours on 28 Sep, 1939, the Nyland was stopped by U-16 about 45 miles northwest of Stavanger. The master of the vessel boarded the U-boat and reported that he does not have the papers, because they fell overboard. At 04.30 hours, a boarding party under command of the LI went over to the ship and found a telegram that the ship should go to Ramsgate instead of Antwerp. At 07.20 hours, the boarding party came back and the Swedish crew was ordered to abandon ship in the lifeboats. They brought the master to the boats and gave them supplies before sinking the ship by a torpedo at 08.25 hours. The crew was picked up by the Norwegian minelayer Olav Tryggvason.