In 1871, Hamburg Südamerikanische Dampfschifffahrts-Gesellschaft (Hamburg–South America Steam Shipping Company, or Hamburg South America Line) was established by a conglomerate of 11 Hamburg-based merchant houses.Three steam-ships totalling 4,000 GRT provided a monthly shipping service to Brazil and Argentina.

​

In 1906 the era of luxury passenger ships began with the steamships Cap Vilano and Cap Arcona (I) on the voyage to South America, with Hapag building two more sister ships. Cap Finisterre (14,503 GRT, 16.5 knots) followed in 1911 as the first steam express ship. In 1914 Cap Trafalgar (18,710 BRT, 17 knots) entered service as the new flagship of the HSDG fleet.

In 1914 the shipping company had 56 ships with a total of 325,031 GRT. It was the fourth largest German shipping company after Hapag, NDL and DDG Hansa. Under construction were the near-completed fast steamer Cap Polonio, which was to exceed 20,000 GRT for the first time, and three smaller cargo steamers.

After World War I, Hamburg Süd did not own a single seagoing vessel. Operations were initially resumed with chartered ships and liner shipping was redesigned. Six delivered ships were also bought back in 1921/1922. With the reacquisition of Cap Polonio , the shipping line entered the cruise business in 1922 . After completing the first state-funded newbuilding program, Hamburg-Süd had 17 ships with 129,447 GRT on January 1, 1924