Sydney to Hobart yacht race: SHK Scallywag retires as Andoo ...

Andoo Comanche holds a narrow lead over LawConnect at the start of the second day of the Sydney to Hobart yacht race, after the favourite retired on the opening day.

Three yachts retired yesterday, including race favourite SHK Scallywag when its bow sprit broke in the early evening — rounding out a dramatic day for the Hong Kong vessel.

In a post on social media, the Scallywag team said they were "very disappointed" with the outcome but grateful that no-one was injured.

SHK Scallywag broke its bow sprit in the early evening.(Supplied: Scallywag)

Arcadia retired with a torn mainsail, and the two-handed Rum Rebellion also retired. Both are now safe in port.

The main fleet remained closer to the coast overnight, while the leaders were about 60 miles east of Green Cape at midnight on the approach to Bass Strait.

Andoo Comanche had a 5.5-nautical-mile lead to LawConnect, establishing 35-nautical-mile gap to Wild Thing 100 with a pack of mini maxis a further 10 miles back.

The yachts are likely to encounter stormy conditions throughout today for the Bass Strait crossing.

Mick Conway from the Bureau of Meteorology said the storms could create challenging conditions for the yachts.

"The main storms will be in the eastern part of Bass Strait, so that's exactly where the boats are," he said.

Mr Conway said storms were also likely around Tasmania's north-east coast.

The annual race was off to a controversial start on Boxing Day, with a close call between supermaxis SHK Scallywag and Andoo Comanche.

The latter lodged an official protest after there was a near-collision, claiming SHK Scallywag should have tacked (changed direction) sooner.

SHK Scallywag (right) took an early lead after a close call with Andoo Comanche — but they may be hit with a penalty after a protest from their rivals.(AAP: Dan Himbrechts)

After the harbour drama, things slowed right down as boats manoeuvred out of the harbour and around the heads in search of a speedy wind but were left wanting.

The leaders in the field of 103 yachts slowly left Sydney behind at a speed of 8-11 knots, compared to the upwards of 20 knots they can sometimes have.

When the crucial decision of whether to hug the coast or head further out to sea in search of a wind had to be made, the leaders — LawConnect, Andoo Comanche and SHK Scallywag — left the coast and things picked up from there.

The first yacht to cross the finish line at Hobart's River Derwent will win line honours and the JH Illingworth Challenge Cup.

The current Line Honours record was set in 2017 by LDV Comanche with 1 day, 9 hours, 15 minutes and 24 seconds — finishing on the evening of December 27 — but the yachts were still trailing that record on the first day.

The biggest and fastest supermaxi class yachts will be the first to finish the race, with many of the smaller boats much further behind.

It can be days until all of the more than 100 yachts reach Hobart or retire from the race.

The main prize is the prestigious Tattersalls Cup, which goes to the overall winner when adjusted for handicaps — adjustments in time based on things such as weight and length of the boat.