On January 14, 1945, Convoy BX-141 arrived off Halifax Harbor. Waiting for them was the German submarine U-1232, commanded by Kapitan-zur-See Kurt Dobratz. U-1232 had been patrolling off Halifax since before Christmas. Although he had taken a number of shots at ships leaving Halifax, he was unsuccessful and so far had not been detected. As the nineteen ships of BX-141 formed a single column for entry into the harbour, Dobratz fired a single torpedo at the third ship in the line, the British Freedom. It struck the engine room and she began to settle by the stern. Following directly astern, the SS Martin Van Burin increased speed and swung out to starboard. Dobratz fired a stern shot and was rewarded with another hit. The orderly column was now in confusion. The seventh ship in the column, the Athelviking now passed in front of Dobratz. He fired and got his third hit of the day. In just thirteen minutes, he had destroyed three major ships, as feat, which would win him the Knights Cross, one of Germany's highest award for valor. Meanwhile the British Freedom sank until her stern struck bottom, leaving the bow protruding above the waves. The following day, the HMCS Goderich was dispatched to sink the Freedom with depth charges.
Of the 48 crew and 9 gunners, only 1 man was lost, an engineer who was trapped in the engine room.
Chartered into the British Admiralty during the Second World War, she was armed as an escort tanker and 9 additional men were assigned to man her new guns.
Wreck sits between 160' and 210' in Approaches to Halifax Harbour, NS Canada.