Panamanian authorities consider the detention of ships with the Panamanian flag in Chinese ports to be a routine practice for the maritime industry. This was stated by an official representative, who added that similar detentions also occur in other ports under other flags. However, he acknowledged an increase in inspections and reiterated that Panama seeks to maintain a respectful relationship with China. Nevertheless, experts warn of possible impacts on global trade. Laura DiBella, a member of the Federal Maritime Commission, stated that the commission is closely monitoring the increase in detentions of Panamanian-flagged ships in China and their potential impact on international maritime trade, particularly on routes linked to the United States. In her statement on March 26, DiBella noted that recent actions could create “unfavorable conditions” for maritime shipping in U.S. foreign trade, which could activate the commission's regulatory powers to investigate practices of foreign governments. The context of these tensions dates back to the January 29 ruling by the Supreme Court of Panama, which declared the concession of the Balboa and Cristóbal ports to the Hong Kong-based company CK Hutchison unconstitutional. DiBella stated that these actions, described as part of informal guidelines, “appear to be aimed at punishing Panama” following changes in port operations. The warning comes as data reported by the specialized publication Lloyd’s List indicates that between March 8 and 12, 28 Panamanian-flagged ships were detained in Chinese ports, representing 75.7% of inspections during that period. Panamanian Foreign Minister Javier Martínez-Acha Vásquez avoided directly linking these detentions to retaliatory measures. “All we ask is that a decision of the Supreme Court be respected,” he stated. DiBella warned that given that a significant portion of U.S. containerized trade is transported on ships with the Panamanian flag, these actions could have broader commercial and strategic consequences. The official emphasized that measures that delay or impede the movement of vessels linked to U.S. trade are incompatible with the commission's mandate to ensure the reliability of the global supply chain. Following the decision, the Panamanian state appointed interim operators for 18 months, including APM Terminals and Terminal Investment Limited (TIL), linked to MSC. The commissioner indicated that in parallel, Chinese authorities summoned representatives of these companies to meetings in Beijing and that the state-owned shipping company COSCO suspended services in Balboa and reconfigured its routes. According to the statement, China has significantly increased inspections of ships with the Panamanian flag under state port control controls, at levels exceeding historical averages.
Ship Detentions in China Raise Concerns in Panama
Panama views ship detentions in China as routine but acknowledges their increase. The US is closely monitoring the situation, warning of potential negative impacts on global trade amid a legal dispute over the Panama Canal ports.