The Federal Maritime Commission (FMC) said it is closely watching a sharp rise in detentions of Panama-flagged ships in China, which appears to be linked to a recent court ruling in Panama against Hong Kong-based CK Hutchison.
This has raised concerns because the Panama Canal carries about 5% of the world’s shipping trade.
Panama’s Supreme Court in late January cancelled the legal framework that supported a 1997 concession allowing CK Hutchison’s Panama Ports Company to operate the Balboa and Cristobal terminals on both sides of the canal.
After the ruling, the Panamanian government appointed subsidiaries of APM Terminals and Mediterranean Shipping Company (MSC), including Terminal Investment Limited, as interim operators under 18-month agreements.
The decision followed pressure from the United States to limit Chinese-linked influence around the canal.
FMC Commissioner Laura DiBella said the number of Panama-registered ships detained in China has gone far beyond normal levels. According to a Lloyd’s List Intelligence report, the number has reached nearly 70 since March 8.
She said the inspections appeared to be carried out under informal directions and seemed aimed at responding to Panama’s move to transfer Hutchison’s port assets.
DiBella added that Panama-flagged ships carry a significant share of U.S. containerised trade, and such actions could affect shipping and trade flows.
The FMC, she said, has the authority…
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