SS Valencia was an iron-hulled passenger steamer built for the Red D Line for service between Venezuela and New York City. She was built in 1882 by William Cramp and Sons, one year after the construction of her sister ship Caracas. She was a 1,598-ton vessel (originally 1,200 tons), 252 feet (77 m) in length. In 1897, Valencia was deliberately attacked by the Spanish cruiser Reina Mercedes off Guantanamo Bay, Cuba. The next year, she became a coastal passenger liner on the U.S. West Coast and served periodically in the Spanish–American War as a troopship to the Philippines. Valencia was wrecked off Cape Beale, which is near Clo-oose, on the west coast of Vancouver Island, British Columbia, on 22 January 1906. As her sinking killed 100 people (including all of the women and children aboard), some classify the wreck of Valencia as the worst maritime disaster in the "Graveyard of the Pacific", a famously treacherous area off the southwest coast of Vancouver Island.

The Red D Line had been operating a well-established sailing ship service to Venezuela since 1839. This service continued uninterrupted for almost 40 years. By the summer of 1879 however, the company decided to modernize its service with steamships. Three German vessels were leased to begin this service, but it soon became clear that a permanent fleet would need to be provided. Resulting from this decision, two steamships were ordered from William Cramp & Sons in Philadelphia. Both ships were to carry a combination of passengers, cargo and mail, sail under American Registration and be manned by American crews. In 1881, the first of this duo, the 1,200-ton Caracas, was completed and began service in July 1881 between New York City and Caracas via Laguayra and Puerto Cabello.

In 1882, the sister ship of Caracas was completed. The new steamer, Valencia, was shorter in length than her older sister by 5 ft (2 m) and began her maiden voyage in May 1882. An extension service for Valencia and Caracas was provided by the small wooden steamship Maracaibo to the port of the wooden steamer's namesake. Unlike Valencia and Caracas, Maracaibo was registered under the British flag, as she did not operate into the United States. Voyages on Valencia and Caracas were scheduled twice a month, once for each ship, and lasted around 26 days. In 1888, Caracas was sold to Thomas Egenton Hogg of the Oregon Pacific Railroad Company and renamed Yaquina Bay. Valencia however, continued operations with the Red D Line. In later years, Valencia operated from New York City to Laguayra, via Puerto Cabello and the island of Curaçao.

In 1897, the liner Niagara of the Ward Line was laid up to undergo repairs. The Valencia was subsequently chartered from the Red D Line to temporarily take Niagara's place. Despite the charter, Valencia was still manned by her Red D Line crew. On 29 May 1897, the Valencia was purposely attacked by the Spanish cruiser Reina Mercedes. The cruiser fired two shots at the Valencia off Guantánamo Bay. One of the shots missed Valencia's stern by 240 ft (73 m) Immediately, the American flag was raised on Valencia's stern, preventing Reina Mercedes from firing any further shots. It was later revealed that the shots were fired by Reina Mercedes in order to intimidate Valencia into raising her colors. The crew of Reina Mercedes was otherwise well aware of Valencia's identity. Despite not being able to see the cruiser's flag, Valencia's captain was able to identify Reina Mercedes, as both ships were together in Santiago de Cuba only days before. A Spanish official claimed Reina Mercedes had every right to fire upon Valencia for not displaying her American flag, which violated maritime courtesy. In response an American official stated Reina Mercedes did not display her colors while attacking Valencia, making the attack unjustified.

In 1898, Valencia was sold to the Pacific Steam Whaling Company, which brought her around Cape Horn to the United States West Coast. From here, she served between San Francisco, California and the Territory of Alaska. On 19 June of that year, Valencia was chartered by the United States Army for use as a troopship in the Spanish–American War. In this configuration, Valencia could carry 606 troops and 29 officers. She was used to transport the 1st North Dakota Volunteer Infantry, 1st Washington Volunteer Infantry (Companies F, G, I and L), and the California Heavy Artillery (Batteries A and D) between San Francisco and the Philippines. The Army paid Valencia's owners $650 (equivalent to $25,200 in 2025) a day for her lease.

After returning to civil service, Valencia did not adapt well to her new surroundings, and was not a well-liked ship among Pacific Coast passengers. She was regarded as being too small and too open to the elements, causing her to be classified as a second class vessel. Furthermore, her average speed was only 11 knots.

Her design made her difficult to handle during winter months. Valencia's lengthy 100 ft (30 m) bow, reduced visibility from her bridge. The very audible noise of the waves crashing along her bow often interfered with communication between her crew members.

The Valencia was not equipped with a double bottom and, like other early iron steamers, her hull compartmentalization was primitive.