At 10.19 hours on 18 January 1940 the unescorted and neutral Canadian Reefer was ordered to stop by U-44 about 20 miles west-southwest of Cape Finisterre. The crew was given 30 minutes to abandon ship because she carried cargo for Britain. One G7e torpedo fired at the stopped vessel at 11.20 hours was a dud. Six minutes later one G7a torpedo was fired that struck on starboard side amidships in the fuel bunker and set the ship on fire. The Canadian Reefer slowly settled on an even keel and then sank vertically by the stern with a slight list to port about 15 minutes after being hit. The survivors were picked up by the Spanish trawler Jose Ignacio de C. at 16.00 hours and landed at Coruna, Spain the next day.