On 10 May 1941 the unescorted City of Shanghai (Master Arthur Frank Goring), dispersed on 28 April from convoy OB-313, was spotted by U-103, but the lookouts of the vessel also spotted the U-boat and tried to escape. Schütze wrote in the KTB: Nun muss er fallen, wenn ich auch nur einen Aal im Rohr habe (Now he must fall, even if I have only one torpedo in my tube). At 01.30 hours on 11 May, after a hunt of over 16 hours, the U-boat fired its last torpedo and hit the City of Shanghai amidships, which was then finished off with the deck gun off St. Paul Rocks. Six crew members were lost and two more died of wounds in one of the lifeboats. 28 crew members were picked up by the Dutch steam merchant Stad Arnhem and landed at Freetown. The master and 17 crew members were rescued by the Richmond Castle and landed at Glasgow. 22 crew members were picked up by the Argentinian steam merchant Josefina S. and landed at Pernambuco.