US Monitoring Surge in China’s Detention of Panama-Flagged Vessels

The Federal Maritime Commission said China’s detention of Panama-flagged vessels was ‘far exceeding historical norms.’

An aerial view shows containers at the Balboa Port, operated by Panama Ports Company, at the Panama Canal, in Panama City, Panama, on Feb. 1, 2025. Enea Lebrun/Reuters

The U.S. Federal Maritime Commission on March 26 accused China of detaining Panama-flagged vessels in response to Panama’s termination of Hong Kong-based CK Hutchison’s concessions for two key ports.

Panama’s Supreme Court ruled in late January that the concessions held by Panama Ports Company, a unit of CK Hutchison, for the Balboa and Cristobal terminals in the Panama Canal were unconstitutional. The ruling followed an audit by Panama’s comptroller, which alleged irregularities in the 25-year extension of the concession granted in 2021.