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2w ago

U.S. Regulator Warns of Surge in China Detentions of Panama-Flagged Ships

The stepped-up checks could disrupt U.S. trade that depends on Panama’s ship registry.

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The Liberia-flagged cargo ship Maria Y transits the Cocoli Locks at the Panama Canal, in Panama City, Panama, March 13, 2026. REUTERS/Enea Lebrun
A Chinese national flag is seen in the foreground with container ships, cranes, and stacked shipping containers at the Yantian International Container Terminal under cloudy skies, on April 12, 2025 in Shenzhen, China.

Overview

  • The U.S. Federal Maritime Commission, which issued a warning Thursday, reported nearly 70 Panama-flagged ships held for inspections at Chinese ports since March 8.
  • The agency said the intensified checks followed informal directives that appear designed to punish Panama for shifting control of canal terminals from CK Hutchison.
  • China’s Foreign Ministry denied any retaliation and accused Washington of spreading false claims to seize influence over the canal.
  • After voiding the 1997 concession in January, Panama installed APM Terminals and MSC’s Terminal Investment Limited for 18 months, and CK Hutchison began international arbitration seeking more than $2 billion.
  • Chinese responses included the transport ministry summoning Maersk and MSC to Beijing and state carrier COSCO suspending operations at the Port of Balboa.