After the retreat of the German East Asia Squadron from Southeast Asia, "Emden" remained behind to function as a commerce raider. During a two-month period, the German cruiser captured or sank 25 civilian vessels, shelled Madras, and destroyed two Allied warships at Penang. In early November, von Müller decided to attack the communications station at Direction Island, in the Cocos (Keeling) Islands, to hamper Allied communications and frustrate the search for his ship. Around the same time, a convoy of Europe-bound transports carrying Australian and New Zealand soldiers departed from Albany, Western Australia, with , HMAS "Sydney", , and escorting.