The brig departed Sydney bound for India on 10 October 1818 under the command of John Howard. As the ship passed through Bass Strait he stopped at several islands to purchase sealskins from sealers in the area. On 26 October a gale rose and Howard sheltered in the lee of East Island. Howard went ashore probably to find sealers. On arriving on shore he noticed that the Daphne was being driven towards the rocks. He returned back on board but could do little to save the brig. He therefore ordered the passengers and crew to abandon ship. The passengers made it to shore safely but the Daphne was totally destroyed.
The longboat was badly damaged and it took Howard and his crew some eight days to repair it. He then took his chief mate and three seamen and headed to Launceston on 4 August. Blown off course he eventually made Hobart on the 14th of November 1818 where he chartered the sloop Governor Sorrell to rescue the eight passengers and crew remaining on East Island.  Meanwhile the John Palmer arrived and took on board some of the wreck survivors and attempted to head back to Hobart.