Supermaxi Wild Oats XI has slowly but surely lengthened its Sydney to Hobart lead but the real mover overnight has been New Zealand entry Giacomo.
While many of the yachts skirted wide of the coastline, Giacomo made excellent speed sailing closest to land through the night hours to leap from sixth to third in the battle for line honours.
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Wild Oats XI takes lead after awful start
Favourable conditions in the Sydney to Hobart yacht race have the super maxis on track to beat Wild Oats XI's 2012 record.
Giacomo passed fellow Kiwi entry Beau Gaste, Hong Kong boat Scallywag and the Mark Bradford skippered Black Jack through the night to be snapping at the heels of Perpetual LOYAL, which is less than three nautical miles ahead of Giacomo.
While Giacomo has made up plenty of time the boat to catch is eight-times winner Wild Oats XI.
The Supermaxi extended her lead through the night to be leading LOYAL by eight nautical miles as the lead boats in the fleet make their way past the eastern Victoria coastline.
The starting fleet of 88 was reduced to 85 by early Monday evening.
The first two casualties were from Newcastle.
The 71-year-old Freyja, who was contesting her first Hobart, withdrew with a shredded headsail inside the first two hours.
There was frustration too for Dare Devil, who pulled out after being forced to retire with rudder damage for a second-straight year.
Also ruing a premature end to their race for a second straight year was the crew aboard Patrice, which pulled out with a broken rudder.
The current leader for handicap honours is Queensland yacht Bravo, skippered by 76-year-old Sydney to Hobart veteran Robert 'Robbo' Robertson.
AAP