China has stepped up detentions of Panama-flagged vessels, raising tensions in a widening dispute over control of key ports linked to the Panama Canal.
The US Federal Maritime Commission said it is closely monitoring the surge, which appears tied to a court ruling in Panama against Hong Kong-based CK Hutchison.
Panamaâs Supreme Court in January invalidated the legal framework behind a 1997 concession that allowed CK Hutchisonâs Panama Ports Company to operate the Balboa and Cristobal terminals on both sides of the canal.
Following the ruling, Panama appointed US-linked operators, including Maerskâs APM Terminals and Mediterranean Shipping Companyâs Terminal Investment Limited, under 18-month interim agreements.
The decision came after mounting pressure from the United States to limit Chinese influence around the canal, which handles about 5 percent of global maritime trade.
According to the FMC, detentions of Panama-registered ships in China have surged well beyond historical levels, with nearly 70 cases recorded since March 8, based on data from Lloydâs List Intelligence.
Commissioner Laura DiBella said the inspections appear retaliatory.
“These intensified inspections were carried out under informal directives and appear âintended â to punish Panama after the transfer of Hutchisonâs port assets,” DiBella said in a statement.
She warned of wider implications for global trade and US interests.
“Given that Panama-flagged ships carry a meaningful share of U.S. containerized trade, these actions could result in significant commercial and strategic consequences to US shipping,” she said.
The FMC added it has the authority to investigate whether foreign government actions are harming US trade.
In a related development, Chinaâs transport authorities summoned shipping giants Maersk and Mediterranean Shipping Company to Beijing for high-level discussions.
CK Hutchison, which operated the ports for nearly 30 years, has rejected the Panama court ruling, accusing authorities of unlawfully seizing its assets.
The company has launched international arbitration proceedings against Panama, seeking more than $2 billion in damages.
The dispute has also complicated CK Hutchisonâs planned $23 billion sale of a majority stake in its global ports business to a consortium led by BlackRock and Mediterranean Shipping Company, further escalating uncertainty across the global shipping industry.
Faridah Abdulkadiri
