Where we see it all the time is in a pass or mouth of a river when you
have an onshore wind (from sea to land) smacking into an outgoing tide
or current, the waves will be a washing machine on steroids. If you
can hug the shore and get out of the current it will be reasonable as
long as you don't run aground..
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Yes, that's very common. The inlets all along the Atlantic coast are
particularly dangerous under those conditions except for the ones with
big breakwaters. We've also seen it in the eastern Caribbean where
the trade winds create big easterly waves but the gaps between the
islands are tidal. You can be going along in the normal 3 to 6 ft
seas and suddenly see a patch of white water ahead where the waves are
breaking and twice as high.