Time: 0100 7/13/43
WX: Squalls, 10 kt wind, quarter moon
USN force of 3xCLs and 10 DDs tasked to interdict IJN supply run to Kolombangara. IJN force comprised of 1XCL and 5 DDs escorting 4 DDs loaded with troops and supplies. Numerous squalls in the area reduced the effectiveness of the USNs SG radars, however the flagship USS Honolulu gained contact on all IJN ships early in the engagement.
The IJN had a couple ships equipped with radar detectors which did alert them to the presence of a USN force. While the USN closed the range the Japanese transport DDs detached and headed south to their drop off point using a convenient squall line to mask them from USN eyes (but not radar). The USN acquired visual contact on a CL and DD but still held fire hoping to close the range further. Finally the IJN lookouts woke up and spotted 3 of the leading USN DDs at around 8Kyds. Both sides opened fire simultaneously with the USN illuminating the enemy CL and DD with star shells, while the IJN DD snapped open its searchlight focused on the leading USN DD.
While Japanese gunfire was less than satisfactory they were able to get off 10 torpedoes and begin a hard starboard turn under cover of a smoke screen. The American gunfire was more accurate landing a couple 6" rounds on the IJN CL and multiple 5" hits on the IJN DD causing it to momentarily lose all power as well as knocking out both banks of torpedo tubes and the aft 4.7" gun.
As the damage control party on the Japanese DD frantically worked to restore power before coasting to a dead stop, the torpedoes the IJN fired started passing through the USN formation. Only one torpedo made contact hitting the Honolulu at the extreme bow resulting in hull damage limiting her speed to 29 kts and putting a forward turret OOA .
The USN then executed a 90 degree turn to starboard and visually acquired a group of 4 IJN DDs off the starboard side. Due to bad luck or bad lookouts the group of IJN DDs had still not visually spotted any USN targets but was aware of their presence due to a radar detector on the division flagship.
This group was maneuvering to take cover in a nearby squall when the lead two DDs where smothered by 6" USN cruiser fire. the Yukikaze and Hamakaze were severely hit and the division made a hard port turn to duck into the squall. Unfortunately the lead 2 DDs turned tighter than the rear 2 DDs resulting in collisions between Kiyonami and the Yukikaze as well as the Hamakaze. Due to this and the damaged suffered by gunfire the Hamakaze foundered.
With only one ship undamaged the division commander decided it was time to head for the exit and using the squall as cover disengaged.
Meanwhile virtually unnoticed by the USN force the Japanese transport DDs launched 24 torpedoes after clearing a squall line. These torpedoes intersected the American formation at the point of their 90 degree turn but only for the rear division of DDs who elected not to follow the turn and steamed straight ahead. Although several DDs had close calls, only one torpedo found a target resulting in the sinking of the USS Ralph Talbot.
The 4 clear tape marks are the launch locations of the transport DDs torpedoes.
At this point with all IJN targets opening range and obscured by squalls the USN commander broke off the engagement.