Both Norway and Denmark already operated their own transatlantic liners, and the establishing of a Swedish company for the trade was a matter of national pride.

[2][7][8] The Broström Concern had already operated freighters across the North Atlantic since 1911 under the name of Swedish American Mexico Line (often abbreviated SAML).

[11] In February 1920 RAB Sverige-Nordamerika acquired a second ship, the former Allan Line vessel SS Virginian from Canadian Pacific Steamships.

[1][2][15] In April 1924 the company acquired SS Borgholm, a small coastal steamer that became the first in a series of feeder ships used to transport passengers from ports around the Baltic Sea to Gothenburg.

[2][16][17][18] In March 1923 RAB Sverige-Nordamerika placed an order for their first newbuilding, the first MS Gripsholm, with Armstrong Whitworth & Co in Newcastle upon Tyne.

On the same date her owners officially changed their name to Svenska Amerika Linien / Swedish American Line, and on 21 November the Gripsholm set out on her maiden voyage from Gothenburg to New York.

[2][19] Encouraged by the success of the Gripsholm, SAL placed an order for a ship of similar but larger design with the Blohm & Voss shipyard in Hamburg on 28 October 1926.

She was also one of the first liners with interior decorations in art deco style, following the lead of the SS Ile de France, built in 1927.

[11] With the Gripsholm and Kungsholm the SAL gained popularity with West European and American passengers, both in liner and cruise service.

In November 1936 the company placed an order for a new ship, MS Stockholm, with Cantieri Riuniti dell'Adriatico, Monfalcone, Italy.

[2] The planned delivery date for the ship was in March 1939, but she was destroyed by a fire during the final stages of construction on 19 December 1938.

[2][22][23] Due to World War II breaking out in Europe, the Kungsholm made her last transatlantic crossing in October 1939, after which she was used for cruising around the West Indies until 1941.

[2][21][26][27][28] The Drottningholm meanwhile was chartered by the US government 4 March 1942 for use as a repatriation vessel, to exchange official personnel between the United States and the Axis powers.

[29] In October 1944, before the end of World War II, SAL placed an order with the Götaverken shipyard in Gothenburg for a cargo/passenger liner of 12,165 gross register tons (GRT).

[6][9] On 18 July 1947 Swedish American Line bought back the USS John Ericsson from the US Navy, and restored her to her original name.

The ship sailed to the Ansaldo shipyard in Genoa, where she was rebuilt for service with Home Lines under the name MS Italia.

[14] Between 18 December 1949 and 14 February 1950 the Gripsholm was rebuilt at Howaldtswerke, Kiel with amongst others new funnels, a new bow and modern navigational equipment.

[19] In March 1950 the company placed an order for a new combined cruise ship/ocean liner with De Schelde shipyard at Vlissingen, Netherlands.

[31] Coinciding with the completion of the Stockholm's refit, the ageing Gripsholm was sold to the North German Lloyd, becoming their MS Berlin.

[2] In May 1959 the Stockholm was sold to VEB Deutsche Seereederei, East Germany, with a delivery date on 3 January 1960, becoming their MS Völkerfreundschaft.

[34] In 1965 SAL had founded Hoverlloyd together with Swedish Lloyd to offer a fast hovercraft connection across the English Channel.

[38] Increased operational costs of Swedish-flagged ships forced the company to start negotiations with Swedish trade unions for re-flagging the Gripsholm and Kungsholm.

[40] As of 2022, the last surviving ships that were part of Swedish American Line are: the MS Stockholm of 1948, currently laid up in Rotterdam, Netherlands; the tender SS Marieholm, serving as restaurant ship in Gothenburg, Sweden; and a tender from the MS Kungsholm, used as the excursion boat Cygnet on Coniston Water, England.