Lyric discussion by ASaltyDog 

Addendum: Cape Horn is the southernmost tip of Chile. Here's the wikipedia excerpt:

Cape Horn is the most southerly point of South America, and marks the northern boundary of the Drake Passage; for many years it was a major milestone on the clipper route, by which sailing ships carried trade around the world. However, the waters around the Cape are particularly hazardous, owing to strong winds, large waves, strong currents and icebergs; these dangers have made it notorious as a sailors' graveyard.

It was on the way to Australia from England.

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