`` The event seems to be inspired by the John Greenleaf Whittier 's poem The Palatine '' '' appeared in The Atlantic Monthly in 1867 , about the wreck of the ship Princess Augusta in 1738 , at Block Island ( Rhode Island ) .The Fog was part of a two-picture deal with AVCO-Embassy , along with Escape from New York '' ( 1981 ) , and was shot on a reported budget of $ 1 million . ''
The Fog ( film ) is based on the fate of the ship Princess Augusta .