Ozette was part of the order for ten vessels placed by USSB with Seattle North Pacific Shipbuilding Co. on 5 November 1917 and was laid down on 19 June 1918 and launched on 28 September 1918 (yard number 1), with Mrs. C.J.

[5] While still under construction, the freighter together with several other vessels was allocated to W.R. Grace & Co.[6] Upon commissioning, Ozette proceeded to load a total of 7,900 tons of cargo consisting of flour and Red Cross supplies destined for either Atlantic coast or Europe.

The ship was scheduled to arrive in Galveston in mid-August to load a large cargo of cotton bound for Bremen, but that allocation was cancelled shortly thereafter.

After loading a cargo of 4,000 tons of phosphate hard rock at Fernandina Ozette continued on to Savannah in early January 1920 where she additionally embarked 12,353 bales of cotton.

[14] Soon after leaving port the vessel ran aground on a bank of Savannah River and became stranded, but was quickly pulled off by US Coast Guard cutter Yamacraw and was able to resume her voyage.

[15] In the early morning of January 30 while about 150 nautical miles (280 km) east of Savannah, the freighter encountered a lone lifeboat containing chief officer and seventeen other men from steam tanker SS Mielero which broke in two and sank four days earlier.

[16] The rescued crew was taken on board the vessel, and was subsequently transferred to Mielero's sister ship SS Sucrosa who safely landed them ashore at Baltimore on February 3.

The vessel made another similar trip in July–September 1920, loading 5,551 tons of phosphates at Jacksonville at the end of July and sailing for Hamburg reaching it in late September.

[24] Upon unloading her cargo and undergoing repairs, Ozette departed Southampton on August 22 and reached Norfolk on September 8 after an uneventful journey.

In early September 1932 the Shipping Board decided to scrap 124 World War I era vessels in its possession, including Ozette, to alleviate significant tonnage overabundance.

[27] In October 1932 it was announced the whole lot of these vessels was sold to the Boston Iron and Metal Company of Baltimore for $1.51/ton of recoverable material which was believed at the time to be over 350,000 tons.