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.

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.

A single cancel with a “b” identifier was used during the entire period of the Jaluit Linie.  An “a” cancel is believed to have been created for the steamer Oceana, but the Oceana ran aground prior to beginning service on the Jaluit Linie.

Service on the Jaluit Linie ceased upon the outbreak of World War I.