May 2, 1942 the U-74 was sunk in the narrow channel of the Mediterranean between Spain and Algeria while attempting to break out into the Atlantic. The U-74 was launched on Aug. 31, 1940 and placed under the command of Kptlt. Eitel-Friedrich Kentrat. Under his command the U-74 sank 7 ships including the AMC HMS Worcestershire and the HMCS Levis K-115. It was on May 27, 1941 however that the U-74 added her name to the story of the Bismarck by picking up three of her survivors. She is also the reason that so many of Bismarck's survivors were left in the water by the British after the battle.

Reports were received that a U-boat had been spotted in the area (the U-74) and to protect his ships, that were dead in the water rescuing survivors, from becoming another victim of a U-boat, the Captain of the Dorsetshire ordered the ships to get underway. This action caused the deaths of several hundred German sailors. Only 5 of those left in the water after the British left were picked up, 3 by U-74 and 2 by a weather ship.

When the U-74 was lost she was under the command of 28 year old Oblt. Karl Friederich. Friederich had only commanded a training boat until he took command of U-74 on Mar. 24, 1942 and had never been on a war patrol. His lack of experience would cost him and the 46 man crew their lives when they were located by two British destroyers and a RAF aircraft. The boat was depth charges until she imploded and sank with all hands.