Founded in 1929 to unite under one operating entity the assets of four companies: the Drummond Lighterage Company of Seattle, Washington, the Cary Davis Tug and Barge Company of Seattle, Washington, the Pacific Towboat Company of Seattle, Washington and the Gilkey Brothers Towing Company of Anacortes, Washington. At founding, the combined fleet was made up of 27 tugboats and 48 barges.
In 1946, Thomas Crowley, who had owned a partial stake in the company, became the controlling interest, and its operations became subsidiary to the Crowley Launch and Tugboat Company of San Francisco, California.
In 1975, Crowley Launch and Tugboat Company was restructured as the Crowley Maritime Corporation, and Puget Sound Tug and Barge was phased out of use in favor of the Crowley name.