Bayou Teche was built in 1918, by the Jahncke Shipbuilding Corporation at the Jahncke Shipyard along the Tchefuncte River in Madisonville, Louisiana. It was a Ferris-type wooden hulled cargo steamship built for the U.S. Shipping Board as part of the large World War I war effort. The shipyard employed close to 2,200 workers and went on to build six wooden cargo ships like Bayou Teche. The city of Madisonville stayed a center for shipbuilding after World War I and into the post-World War II era. However, the high demand created by the U.S. Shipping Board contracts was never seen again.