CSSC Shipping, the shipowning arm of Chinese shipbuilding giant China State Shipbuilding Corporation, has emerged as the buyer of an elderly VLCC sold recently.

The company snapped up the 1999-built 311,200dwt DS Chief for US$25.25m from German outfit Dr Peters' tanker arm, DS Tanker. The ship was first reported sold some 10 days ago.

Sources said that CSSC Shipping has been quietly adding elderly VLCCs to its fleet for storage purposes, using them off Singapore. The unit now has five VLCCs, and while an official from the company declined to comment on specific deals, he did say that they have always been looking for investment opportunities in the market.

Sources have also said that CSSC Shipping was behind the purchase of another VLCC, the 1998-built 300,000dwt Front Vanguard, sold by John Fredriksen's Ship Finance International last week for a similar price.

CSSC Shipping acquired its first VLCC in 2014, spending US$25.3m on a 1999-built vessel from JX Shipping of Japan.