Built in 1957, by RTC Shipbuilding of Camden, New Jersey (hull #237) as the Dalzell 2 for the Dalzell Towing and Transportation Company (New Haven Transport Company) of New York, New York.

In 1965, the Dalzell Towing and Transportation Company was acquired by the McAllister Brothers Towing Company of New York, New York. However, the tug was not included in the sale.

In 1966, the tug was acquired by the Lacey Harbor Corporation of New York, New York. Where she was renamed as the Lacey 2

In 1970, the tug was acquired by the McAllister Brothers Towing Company of New York, New York. Where she was renamed as the Michael J. McAllister.

In 2004, she was acquired by Bluewater Maritime School Incorporated of Jacksonville, Florida. Where she was renamed as the Rachel Rae.

In 2005, the tug was acquired by the Blacksmith Marine Corporation of Jacksonville, Florida. Where she was renamed as the Blacksmith III.

In 2010, she went out of documentation. Her current and, or final, disposition is unknown. She was single screw, rated at 1,800 horsepower.