Arne Blystad has quietly started a new private company to buy small containerships while in the process of selling off his majority-owned Songa Container.
The new 100% Blystad-owned Songa Box accumulated three containerships this spring in the same size bracket as the Songa Container fleet, according to Fredrik Platou, managing director of the Norwegian shipowner's eponymous company.
The purchases have mainly been unreported or misreported.
"We've stayed mostly under the radar," he told TradeWinds following the sale of Songa Container to MPC Container Ships (MPCC).
All three of Songa Box's ships are up for new charters in one to two months in a blistering market.
"It's been an amazing turnaround," Platou said. "Nobody would have expected to see this a year ago."
In a deal announced on 22 June, MPCC bought Songa Container with its 11-ship remaining fleet for $210.5m in cash and shares. Terms had been agreed on 31 May.
Platou emphasised that Blystad remains an owner of the 11 ships through a shareholding in MPCC, whose total fleet of 75 makes it a big player in a small ship market.
Songa shareholders Arne Blystad, Klaveness Marine and Magnus Roth's Canomaro Shipping come out of the deal holding about 11% of post-transaction shares in MPC Container, in addition to cash proceeds. Just over 5% of MPCC shares will belong to Blystad.
But Platou underscored that Songa Box unlike Songa Container is wholly owned by Blystad.
The Blystad group does its own technical management as well as its own chartering.
"But we share the same market view as MPCC," he said. "They have a very good read on the market and a very good chartering strategy."
He underscored that the sale is not that of a shipowner selling out at the peak of a market. Participating in the earnings of a larger player was Songa Container's goal.
"I think the transaction implies a continued participation in a consolidated vehicle with a very strong earnings potential," Platou said. "We look forward to the years ahead as a long-term investor."
Small and growing fleet
Before the existence of Songa Box was known, TradeWinds reported in April that Blystad's private interests had picked up the 2,872-teu Robin 1 (built 2009) and two other unnamed ships.
Platou named them as the 1,740-teu Hansa Falkenburg (built 2008) and 3,091-teu Barry (built 2004). He did not comment on the price or seller, but market reports of the sales of those ships would come in at just under $37m combined.
Torvald Klaveness' sale of the Barry was reported in May for an estimated $10m, but that sale was incorrectly reported to be en bloc to a Chinese buyer.
Leonhardt & Blumberg Shipmanagement's sale of the Hansa Falkenburg in March was incorrectly connected to Taiwan's TS Lines at a price of $11.75m.
VesselsValue reported the Robin 1 sold to Blystad’s private shipping interests in late March by Robin Shipping for $15m, with the notation “poor condition, sub-market charter”.
Platou responded: "We do our own technical management and we operate our vessels to a high technical standard."
He would not be drawn on further Songa Box deals.
"We are generally optimistic for container market fundamentals," he said.
This article has been amended since publication to reflect that the Barry was built in 2004.
