SPM Shipping Modernizes Fleet With Secondhand Buys
Fleet operators can fund growth by timing asset sales against rising secondhand vessel valuations.
Updated on Oct. 16, 2026 in Business Strategy
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SPM Shipping aggressively modernized its fleet throughout 2026 by acquiring multiple secondhand tankers, including VLGCs and an MR tanker, while offloading older assets. The Dubai-based operator now manages a total of nine tankers and three Capesize bulk carriers.
Why it matters
The company is cycling its capital by selling older tonnage for significant gains and reinvesting in newer, 2015-built assets to optimize fleet performance. This strategy allows operators to balance immediate liquidity needs against the long-term operational efficiencies of a younger, more specialized fleet.
SPM Shipping generated a $69 million gain on the 2026 sale of the VLCC Ashoka, which it had purchased for $56 million just one year prior. The firm now maintains a fleet of 12 vessels, supported by significant capital recycling across its tanker and bulk carrier portfolio.
The players
SPM Shipping
A Dubai-based vessel operator that manages a fleet of nine tankers and three Capesize bulk carriers.
J M Baxi Marine Energy
A partner company that operates two VLGCs under a joint venture with SPM Shipping.
The details
SPM Shipping executes this strategy by sourcing secondhand vessels from international markets, including Greece and Hong Kong, to rapidly scale capacity. By selling the 2010-built VLCC Ashoka at $125 million, the company capitalized on elevated asset values to fund the $95-96 million purchase of the 2015-built VLGC Hellas Hercules. Operational flexibility is further maintained through joint ventures, such as the arrangement with J M Baxi Marine Energy for two specific VLGCs.
Timeline
SPM Shipping purchased the VLCC Ashoka in 2025.
Shipbrokers reported the sale of the C Innovator in summer 2026.
The VLCC Ashoka was sold in September 2026.
SPM Shipping was identified as the buyer of the Hellas Hercules in September 2026.
SPM Shipping was identified as the buyer of the SPM Invictus in September 2026.
Market Landscape
SPM Shipping's rapid fleet turnover marks a strategic response to the historical volatility of secondhand vessel valuations. By prioritizing the acquisition of 2015-built tonnage, the company aligns its operational scale with current market demand for newer, more efficient maritime assets.
Operators looking to scale should monitor their asset lifecycles, as demonstrated by the potential for high returns on vessels held for less than two years. Ensure that capital reinvestment plans account for the price delta between older and newer vessels to maintain margin stability.
The takeaway
SPM Shipping demonstrates that aggressive fleet modernization is a viable strategy for capturing valuation gains in a tightening market. Operators should track the age of their primary assets relative to prevailing resale prices to identify optimal windows for capital reinvestment.
Further reading
For more on managing growth through asset recycling, see our guide on Business Strategy.
Source note: This article includes information reported by Riviera.
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