continued operations with the Drottningholm, Gripsholm and Kungsholm throughout the 1930s. In November 1936 the company placed an order for a new ship, , with Cantieri Riuniti dell'Adriatico, Monfalcone, Italy. The planned delivery date for the ship was in March 1939, but she was destroyed by a fire during the final stages of construction on 19 December 1938. Construction of a second ship based on the same design, also named , began soon after the destruction of the original. 1939–1946 Due to World War II breaking out in Europe, the Kungsholm made her last transatlantic crossing in October 1939, after which she was used for cruising around the West Indies until 1941. Also due to the war the Gripsholm and Drottningholm were taken out of service and are laid up on 24 November 1939 and March 1940, respectively. Meanwhile, the construction work continued on the third Stockholm in Italy, and she was launched on 10 March 1940. In October 1941 the ship was ready for delivery, but due to the war SAL had no service to place her on. As a result, the ship was sold to the Italian government on 3 November 1941 and converted to the troopship MS Sabaudia. The Sabaudia eventually sunk outside Trieste on 6 July 1944. Had the Stockholm ever entered service for SAL, she would have been the largest ship ever operated by the company. In December 1941 the US Government confiscated the Kungsholm while she was in New York. After negotiations with the Swedish American Line, the company agreed to sell the ship to the War Shipping Administration (WSA) for $6 million which renamed the ship John Ericsson for operation under WSA contract by United States Lines with allocation first to the State Department and then in January 1942 to Army troop transportation until 1945 when she was laid up. The Drottningholm meanwhile was chartered by the US government 4 March 1942 for use as a repatriation vessel, to exchange official personnel between the United States and the Axis powers. As Sweden was a neutral country during the war, the Swedish-flagged ship could be used to transport passengers between the warring nations, under the command of Sea Captain John Nordlander. The Drottningsholm made two exchange trips for the US government, after which she was chartered for similar use by the British government. In June 1942 the Gripsholm was also chartered to the US