The Shipmasters' Association was founded in January 2004. The association was formed by the merger of three long-established associations, namely the Aldan Skippers' and Steers' Association, one of the oldest unions in the country, founded in 1893, the Norðlendinga Skippers' and Steers' Association, founded in 1918, and the Icelandic Shipmasters' Association, which was formed by the merger of three older associations in 2000, but whose roots date back to 1919. At a later stage, the Sindri Skippers' and Steers' Association became a member of the Shipmasters' Association, as did the Bylgjan Skippers' and Steers' Association in the Westfjords.