On 30 April 1942 the unescorted and unarmed Federal (Master Walter Furst) proceeded on a zigzag course at 8 knots for Cuba to obtain a cargo of molasses, when a lookout spotted U-507 three miles away on the horizon. The tanker changed course for land and the U-boat submerged. At 18.10 hours, U-507 surfaced about 450 yards away and began shelling the ship about five miles north of Gibara, Cuba. The first shell went through the quarters of the crew, killing the chief cook and wounding the third mate. After approximately 30 rounds at the rate of three to four rounds per minute the crew of eight officers and 25 men abandoned ship in one lifeboat and two rafts. The shellfire had destroyed the #3 and #4 lifeboat and made it impossible to launch the #2 boat. U-507 approached the tanker close to the port side and put more then 100 rounds into her. The wooden bridge was set on fire and three men were killed. The Federal settled on even keel, then listed to port, capsized and sank stern first an hour after the first shot was fired. A US Navy aircraft arrived at the scene one hour after the ship sank, followed by a second aircraft 20 minutes later. They unsuccessfully searched for the U-boat and other survivors. At 21.15 hours, the US Army transport Yarmouth circled the survivors several times and steamed away, due the danger of being torpedoed. The 15 survivors on the rafts were picked up by fishing craft from Gibara two and a half hours after the attack. The 14 survivors in the boat followed the craft to shore. The third mate died from wounds after reaching shore.