Pensacola was originally the German screw steamer Nicaria, launched in Rostock, Germany on 18 August 1901.

Assigned to the Naval Overseas Transport Service in January 1918, Pensacola carried supplies from the United States to French and British ports.

Returning from Brest to Philadelphia on 2 December 1918, she steamed to New York and sailed for Turkey on 25 January 1919 with a cargo for the Syrian-Armenian Relief, arriving at Constantinople on 12 March.

Following her return to the United States on 15 April, Pensacola carried passengers and cargo to bases in the Caribbean.

Classified AK-7 (Cargo Ship) on 17 July 1920, Pensacola was reclassified AG-13 (Miscellaneous Auxiliary) on 26 June 1922.