Herskildi fór harri Sygna
allt it ýtra eyjar ok strandir.
Harri Sygna fór herskildi eyjar ok strandir allt it ýtra.
The lord of the Sygnir [NORWEGIAN KING = Sigurðr] went with the war-shield on the outer course all the way beyond islands and shores.
[3] it ýtra ‘on the outer course’: Used adverbially here with eyjar ok strandir ‘islands and shores’ as an acc. of place. It ýtra ‘the outer course’ means that the ships sailed outside the coastal islands, and opposed to it innra ‘the inner course’ which would place them on the inner side of the islands.