Southwest of the Cape of Good Hope, the Pequod encounters the Albatross, a vessel finally returning home after a four-year expedition. Ahab calls out to the Albatross, inquiring if they have spotted the white whale. Before the other captain can answer, he accidentally drops the horn he was holding to speak with into the water, and his response is carried away by the wind.

A gathering exclusive to whaling ships is referred to as a "gam," during which the crews of different boats pay each other visits and exchange various items such as letters, newspapers, and news about their whaling activities. The Pequod has a brief gam with the Town-Ho, during which they obtain valuable information about the white whale. During this encounter, Tashtego reveals a confidential piece of information to Ishmael.

The Town-Ho navigated the Pacific Ocean for two years before it encountered a problem: the ship started to leak. During the effort to pump out the water, the first mate, Radney, commanded one of the sailors, a distinguished, strong young man known as Steelkilt, to clean up some pig excrement from the deck, just as he sat down to take a break. Steelkilt refused to comply with the order, which prompted Radney to attack him with a hammer. In self-defense, Steelkilt punched Radney in the mouth.

Steelkilt and a few of his supporters opted to confine themselves in the ship's hold instead of acquiescing to being whipped by the captain. When they eventually emerged from the hold, the captain punished Steelkilt's two allies with lashes. However, the captain refrained from striking Steelkilt and, instead, only murmured a warning in his ear. Enraged by the captain’s mercy, Radney took matters into his own hands and whipped Steelkilt using a rope.

Their feud worsened, and Steelkilt had intended to kill Radney; however, he was spared the trouble when the Town-Ho encountered Moby Dick. During their fight with the white whale, Radney was thrown from his boat and caught in the maw of the enormous whale.