On 1 January 1901, Jaluit-Gesellschaft, a German trading company that operated copra plantations within several of Germany’s Pacific colonies, instituted the Sydney-Jaluit-Yap Linie to connect the colonies of Karolinen and Marianen with the main German shipping lines terminating in Australia and East Asia.  The line initially followed a route of Sydney-Jaluit-Ponape-Yap-Palau and the reverse.

In January 1902, following the cancellation of the Neuguinea-Zweiglinie (Hongkong) Linie, the decision was made to extend the Sydney-Jaluit-Yap Linie to Hong Kong.  Palau was dropped from the route and the terminus was extended from Yap to Hong Kong.  The line then became known as the Sydney-Hongkong Linie.

A single cancel was used during the Sydney-Hongkong Linie period.  It has an “a” identifier, and was used on three ships during the line’s 3 years in operation.

In early 1905, service was extended to Deutsch-Neuguinea.  In conjunction with this change, the line was renamed the Jaluit Linie and a new canceller was introduced.