The American-Hawaiian Steamship Company was founded in 1899 to carry cargos of sugar from Hawaii to the United States and manufactured goods on return trips. Brothers-in-law George Dearborn and Lewis Henry Lapham were the key players in founding the company.
At the time of the company's founding, its steamships sailed around South America via the Straits of Magellan to reach East Coast ports. By 1907 the company began using the Tehuantepec Route. Shipments on the Tehuantepec Route would arrive at Mexican ports—Salina Cruz, Oaxaca, for eastbound cargo, and Coatzacoalcos for westbound cargo—and would traverse the Isthmus of Tehuantepec on the Tehuantepec National Railway. When American political troubles with Mexico closed that route, American-Hawaiian returned to the Straits of Magellan route.
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