Dubai-based Global Feeder Services (GFS) continues to buck the asset-light model preference in the feeder container sector with the acquisition of three 3,534-teu vessels from Northern Shipping Holding.
The trio is part of a clearing out of older vessels by the German tonnage provider, which brokers reported has sold two larger container ships to Italy’s Messina Line.
GFS is reportedly paying a combined $51m for the Northern Delegation (built 2008), Northern Defender and Northern Dedication (both built 2007).
At the same time, Messina Line is said to have acquired the 4,616-teu Northern Priority (built 2009) and Northern Promotion (built 2010) for an undisclosed price.
GFS chief executive Amir Maghami previously told TradeWinds that his company prefers to own most of the ships that are deployed on its route network that stretches from South Korea to East Africa, calling at just about everywhere in between. He claimed this gives it a high degree of protection from volatility in the charter market.
Buying spree
In early 2021, the company went on a container ship buying spree, acquiring 11 modern secondhand vessels in quick succession when prices were still relatively low. With these deals in the bag, GFS owned 26 of the 30 boxships trading in its fleet, putting it in a comfortable position during the liner bull run that immediately followed, in which charter rates and vessel values headed into the stratosphere.
The company held off buying tonnage during this period, and the high freight rates it earned allowed it to emerge from the pandemic debt-free.
Container ship values have fallen significantly since then. GFS is paying on average $17m for each ship. Just over a year ago, it would have paid more than $65m each, according to VesselsValue.
Modern history
GFS’ roots stretch back more than 30 years. It was founded as Simatech Shipping by family patriarch MG Maghami. That name was changed to Global Feeder Shipping shortly after the founder’s eldest son, Amir, took over as chief executive in 2017.
The Maghami family sold an 80% stake in GFS to AD Ports Group in November 2022 for $800m but still holds 20%.
GFS continues as an independent company that operates separately from Safeen Feeders, AD Ports’ own feeder container company, which was established in 2020 to operate a network out of Abu Dhabi.
GFS focuses its container services on Dubai’s Jebel Ali port. The company recently branched out into the MR tanker sector with four newbuilding orders at Hyundai Mipo Dockyard.
