Collins Line
Baltic was launched in New York on 5 February 1850, and set out on her maiden voyage from New York to Liverpool, United Kingdom on 16 November, a route she would maintain for the next eight years. Between 6 and 16 August the following year, Baltic made a record passage from Liverpool to New York of 9 days, 19 hours and 26 minutes at an average speed of 12.91 knots, beating the record of 12.46 knots set the previous year by her sister ship Pacific and thus winning the coveted Blue Riband for fastest transatlantic passage.[8]
As the chief advantage of the Collins Line over its competitor the Cunard Line was speed, it was considered imperative to make every effort to ensure this advantage was maintained regardless of cost. This policy frequently resulted in costly repairs as the ships' engines were continually pushed to the limit. By 1852 it was clear to the owners that the existing government mail subsidy of $19,250 per voyage was insufficient, and the Line returned to Congress to request an increase in the subsidy to $33,000 per voyage. The government granted this request, and it was additionally decided to increase the number of voyages from 20 to 26 per annum, resulting in a total increase of the annual subsidy from $385,000 to $858,000. Competition between the two Lines had reduced freight rates considerably however, and even this new subsidy was not sufficient to prevent the company from continuing to lose money.[12]
In 1853, Baltic's mizzen (third) mast was removed. From 28 June to July 7, 1854, Baltic set a new Blue Riband record with a passage from Liverpool to New York of 9 days, 16 hours and 52 minutes at an average speed of 13.04 knots. Baltic remained the fastest ship on the Atlantic from her first record breaking run in August 1851 until April 1856, when the Cunard liner RMS Persia set a new record with an average speed of 13.11 knots.[8] Almost a century would pass before another American ship, the SS United States, was to regain the honor.[13]
On 27 September 1854, Baltic's sister ship Arctic suffered a collision with the French screw-steamer Vesta and sank with heavy loss of life. Two years later, another of the four Collins Line steamers, Pacific, sailed from Liverpool on January 23, 1856 with almost 200 passengers and crew and was never heard from again. Loss of these two ships—which some blamed upon the Line's emphasis on speed—caused serious financial harm to the company and also damaged its reputation.[14] To make matters worse, Congress rescinded its generous subsidy to the Line in 1857, reducing it from $33,000 per voyage back to the original $19,250.[15]
On 3 February 1858, Baltic began her last crossing on the Liverpool-New York route, arriving at her destination on the 18th.[8] This was to be the final transatlantic crossing made by a Collins Line ship. On 1 April 1858, the assets of the financially troubled company were seized, and Baltic and Atlantic were sold to a creditor for the sum of $50,000.
Later service
Baltic and Atlantic were laid up for more than a year after the Collins Line failure, but on 9 July the two ships were purchased by the North Atlantic Steamship Company which put them to work as coastal steamers on the New York to Aspinwall route. Baltic and Atlantic continued to service this route until March 1860 when they were again laid up, as the company had been unsuccessful in its bid to secure a mail subsidy from the government.[8][16]
With the outbreak of the American Civil War in April 1861, Baltic and Atlantic were both leased by the U.S. government for use as transports at a rate of $1,500 per day. They continued to operate in this role for the duration of the war, with the lease rate dropping to $1,200 in 1863 and $1,000 a day by 1865.[8][17]
After the war, Baltic and Atlantic were both purchased by Ruger Brothers & Associates, whose directors included William H. Webb and E. W. Barstow, to operate for the newly established North American Lloyd Line. Baltic began the first of two round voyages for the Lloyd Line between New York and Bremen, with a stopover at Southampton on 26 April 1866.