Raffles Shipping is growing both on the tanker and dry side and has emerged as the buyer of a South Korean-owned chemical tanker auctioned in Hong Kong two weeks ago.

Raffles, the Singapore-based shipping company controlled by commodities trader Wilmar International, offered a reported $10m for the 13,000-dwt KY Venus (built 2010) when it was put up for auction by the Hong Kong High Court bailiff on 16 August.

Since that time, as TradeWinds reported earlier this week, Raffles has picked up the Taizhou Kouan Shipbuilding-built, 63,000-dwt Star Vivian and Star Jing (both built 2013) for $14.8m each from Norr Systems of Singapore.

Raffles has wasted no time taking delivery of the auctioned chemical carrier, which has been renamed Vega.

Sources close to the auction say the ship attracted substantial interest, particularly from South Korean and Indonesian shipowners. They are the usual buyers for tonnage of this size, which is suited to the regional palm oil trades.

A first auction held earlier this year is said to have only attracted two or three bidders, none of which were serious.

The price Raffles paid was very close to the ship’s estimated market value of $11.25m. Ordinarily, ships sold at auction go for discounts of 20% or more, unless there is strong demand from buyers.

Raffles has shown itself adept at sourcing good-quality bargains at auction. The company has attended vessel auctions across the globe since the 2008 financial crisis, buying up small to medium-size products and chemical tankers. These are now used to ship palm oil from Wilmar’s numerous plantations in Southeast Asia.

The KY Venus had been under arrest in Hong Kong since May after legal action by bunker companies and other creditors. Korea Development Bank (KDB) stood in the background as mortgagee and sole senior creditor.

Prior to its arrest, the vessel had been in the fleet of Seoul-based KS Marine Corp.

Raffles' acquisition of the KY Venus coincides with the company's decision earlier this month to sell the 16,900-dwt chemical tanker Borneo Pioneer (built 1988) for scrap.

That tanker was sold to shiprecyclers in Bangladesh for a reported $1.83m, with 86 tonnes of stainless steel.

Shipping databases indicate that Raffles controls a mixed fleet of 38 tankers and bulkers. It has one further 81,500-dwt bulker under construction in China that is due for delivery next year.