The Nilsson's maiden voyage commenced on 7 August 1871. Destined for the grain and iron bulk cargo trades, the vessel was first enrolled in Chicago on 16 August 1871, with John Hanson as master.

The Nilsson plied the eastern Great Lakes without serious misfortune for two years. In the fall of 1873, however, while enroute from Chicago to Sarnia, Ontario, she encountered a gale off Point Betsy, Mich., due east of Sturgeon Bay.

The storm blew off two jibs , causing her to run to Manitowoc for repairs. With winter approaching, it was questionable whether the Nilsson could be repaired in time to continue her voyage. However, the needed repairs were made in a few days, and Captain Hanson decided to continue the voyage to Sarnia. After departing Manitowoc, the Nilsson "went missing" for two weeks, causing considerable anxiety. The next news heard of her was that she was safely moored for the winter at Cheboygan, Mich., in the Straits of Mackinac.

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