From Wikipedia--
This hymn was written after traumatic events in Horatio Spafford's life. The first was the death of his son at the age of 2 and the 1871 Great Chicago Fire, which ruined him financially (he had been a successful lawyer and had invested significantly in property in the area of Chicago that was extensively damaged by the great fire). His business interests were further hit by the economic downturn of 1873, at which time he had planned to travel to Europe with his family on the SS Ville du Havre. In a late change of plan, he sent the family ahead while he was delayed on business concerning zoning problems following the Great Chicago Fire. While crossing the Atlantic, the ship sank rapidly after a collision with a sea vessel, the Loch Earn, and all four of Spafford's daughters died. His wife Anna survived and sent him the now famous telegram, "Saved alone …". Shortly afterwards, as Spafford traveled to meet his grieving wife, he was inspired to write these words as his ship passed near where his daughters had died
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