Blue Fleet Group

BLUE FLEET GROUP

A FLOATING ARSENAL TO BE PROUD OF

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BLUE FLEET GROUP

I PROFILE

A FLOATING ARSENAL TO BE PROUD OF

Blue Fleet Group has over 60 years of experience in ship-brokering, chartering and ship management. With the third generation of the Arsenal FC-loving family now navigating new waters in the ship-owning business, the company’s future looks bright. Chartering Manager Cherif Khoury spoke to Andy Probert about the venture’s desire to maintain its premier league position in volatile times.

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illed with colourful tales of the

F

Shipping ‘in the blood’

family’s maritime past, Chartering

Too young to remember his pioneering

Manager Cherif Khoury would

grandfather, who died when Mr Khoury

inevitably step on board the family busi-

was just two, the third generation is intent

ness and continue the tradition his grand-

on maintaining that indelible link with the

father Edward began with the opening of

sea. “From the age of six years, I was

Lebanon’s first shipping agency in 1961.

visiting the company office and became

Mr Khoury’s father, Roy, went on to

enthralled with the matching of cargo and

establish his name in the ship managing

ships,” said Mr Khoury. “From that moment,

and chartering space and operated 16 dry

I knew I wanted to be in shipping.”

bulk carriers. Ultimately, Blue Fleet Group was founded in 1996 and now, from its Lebanon and Greece offices, manages 36 vessels with deadweights ranging from 10,000 to 56,000 tonnes, carrying more than three million tons of dry cargo annually, internationally.

Blue Fleet has grown through maintaining close relationships with several Middle Eastern ship owner clients over the last three decades.

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BLUE FLEET GROUP

I PROFILE

That dream came true when he joined

to go to the next level: they became the

the business in 2012, having completed his

owners of four Supramaxes of 55,500

bachelor’s degree in maritime business

tonnes dwt and two Handymax vessels

and maritime law in Plymouth, and his

up to 36,000 dwt to add to their 30-strong

master’s in shipping, trade and finance

managed and chartered fleet.

at London’s CASS Business School.

Brought up on a diet of top-flight foot-

Following a decade’s experience,

ball courtesy of Arsenal back in London

Mr Khoury and his father decided in 2022

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during his formative years, Mr Khoury,

along with his father, named most of their

“We have a special relationship with a

vessels after former and present stars of

Lebanese trader who imports rice into the

the Arsenal team. Hence Saka, Bergkamp,

Mediterranean region. We transport around

Ødegaard, Henry and Martinelli, as well

one and a half million tonnes of rice in bags

as Gunner.

or slings a year, either utilising our vessels

The entire fleet, comprising eight

or other ships,” said Mr Khoury. Sugar,

Supramaxes and the rest Handysize, is

grains, soya and corn are also popular dry

operational globally on the spot market.

cargo shipments on trade routes, including the Ukraine grain corridor.

“For example, Ødegaard is trading coal from Southeast Asia to China; Saka and Henry are discharging rice in West Africa,” Mr Khoury explained. “Bergkamp is taking grain from Ukraine to China, and Martinelli is currently loading in Odesa (Ukraine).

Gunner is discharging grains in Yemen from Argentina.

“As our vessels are trading in some of the world’s hot spots, such as Yemen, Ukraine and West Africa, Blue Fleet is a wellknown client for extra war risk insurance.”

Valued relations The Group has a diversified approach to business, including ship managing some of the vessels. Its chartering business is a particular expertise, with ship owners and

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BLUE FLEET GROUP

I PROFILE

shipping associations representing 60% of the world’s merchant shipping tonnage, with members in 130 nations.

“I know financing in the maritime sector can be a headache for shipowners, but for Blue Fleet, it was relatively smooth when we purchased our ships,” Mr Khoury explained. “We utilised three global financial houses, even though we are located in Lebanon.

“Strangely, given the Lebanese shipping industry, its culture and country, the biggest challenge we faced was hiring people. There are many ship owners here, but not the potential to find staff for crews and chartering.

“It’s not the inability of the Lebanese people to perform such jobs, but the lack of knowledge that surprised me. However, as Lebanese, we are looking to raise skills more as we want to recruit locally, help direct charterers entrusting their cargo to the company.

“Such substantial foundations have

them and support the economic situation.”

“Now, as shipowners, we are utilising clients, as we have strong bonds in the

allowed the Group to work on an exclusive

rice market and with charterers and

basis and be at the disposal of charterers

traders. Having vast experience in the

who we have worked with for a long time,”

chartering sector gives us a distinct edge

said Mr Khoury.

in the market.

Over the years, the Group, a member of

“We value quality over quantity in

the Baltic Exchange of London, has closely

relations, which means we work only with

monitored the ship brokering sector, gath-

trusted people in business. The relation-

ering information from its associates,

ships flourish and are adaptable to each

first-class charterers and co-brokers.

other’s demands and needs. That is what

As a result, it can adapt, make prompt

we value.”

decisions and rapidly deploy the fleet.

The company welcomed advances

Mr Khoury said its crews are Middle

in green energy and was looking into

Eastern, who he described as ‘hard-working

collapsible water sails to drive vessels

and tenacious’. The Group is also a member

forward and new anti-fouling coating

of BIMCO, one of the largest international

concepts to protect its ships.

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Expanding ambitions Blue Fleet has enjoyed a 10% uplift in business growth in recent years due to its proactive approach to the spot market and full fleet utilisation. It has doubled annual tonnage from 1.5 million in 2012 to over three million in the past three years.

With that in mind, father and son are now weighing expansion options and looking to step into the Ultramax market in the next 12 months. “I believe it is a fascinating segment,” Mr Khoury said. “We have done the research, and the OPEX is comparative to within about 5 per cent of a Supramax vessel. The difference being that as you can load more, there’s greater profit margin potential.

“The desire to be a ship owner was driven by my father’s tales of past shipowning adventures, but also the fact

“It’s a 24-hour job, but I enjoy it and have

that we do so much of the work for ship

no regrets. Blue Fleet is well-positioned for

owners,” Mr Khoury concluded. “We know

the future. It has a great team, and each

the market, the traders, the charterers and

member works hard to drive the company

the supply chain.

forward in a volatile market.”

n

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