According to the narrative, Allan Gordon was the sole survivor of the Anne Forbes, a whaling ship that disappeared without a trace in 1757.
Subsequent arguments amongst the pair escalated into physical fighting and, on one particular day of violence, Allan left his employer unconscious on the ground.
The Anne Forbes, soon after apparently sinking, resurfaced (presumably due to air trapped in the holds of the ship) and was eventually forced onto an underwater ledge of the iceberg where it quickly froze in place.
This is remarkably similar to the events that transpired in September 1854 when noted explorer Captain Elisha Kane's ship, the USS Advance, sank in the Arctic seas.
On their Live at the Paradox EP (when they were called The Thirty Years' War) guitarist Thomas Erak made reference to 'The Iceberg Hermit' before playing the song.