For her third voyage "Wilhelm Gustloff" left Hamburg on 1 April 1938 under the command of Carl Lübbe to join the KdF ships "Der Deutsche", "Oceania" and "Sierra Cordoba" on a group cruise of the North Sea. A storm developed on 3 April with winds up to that forced the four ships apart. Meanwhile, the 1,836 gross ton coal freighter "Pegaway", which had departed Tyne on 2 April for Hamburg, was also caught up in the storm. Cargo and machinery were washed from "Pegaway"s decks and the ship lost maneuverability as the storm increased in intensity. By 4 April, it was taking on water and slowly sinking.