Panama has raised concerns over a recent increase in inspections and detentions of its flag-bearing vessels in Chinese ports, linking the development to a domestic legal dispute involving Hong Kong-based conglomerate CK Hutchison.
Speaking at a conference in Asunción, Panamanian Foreign Minister Javier Martínez-Acha said the spike in detentions followed a January ruling by Panama’s Supreme Court. The court invalidated the legal framework that allowed CK Hutchison’s local unit to operate two key terminals near the Panama Canal, prompting the government to cancel the concessions.
“As a result of the ruling, our commercial shipping fleet — the most important in the world — has seen an increase in inspections and detentions of vessels flying our flag in ports of the People’s Republic of China,” Martínez-Acha said, expressing hope that the situation would soon normalise.
Panama has urged China to respect its legal sovereignty, emphasising that it expects the same treatment it extends to other nations.
The issue has added a new layer of tension amid the broader geopolitical contest between the United States and China over global trade influence. Panama, which controls the strategically vital Panama Canal handling around 5% of global maritime trade, finds itself at the centre of this dispute.
In late March, the US Federal Maritime Commission said it was closely monitoring the situation, while US Secretary of State Marco Rubio described the detentions as a matter of serious concern. Panama has also acknowledged support from the United States and other countries that have raised the issue.
China, for its part, has criticised the Panamanian court ruling, calling it an “act of bad faith.” CK Hutchison, which had operated the terminals for nearly three decades, has initiated international arbitration proceedings against Panama, seeking over $2 billion in damages and alleging unlawful seizure of its assets.
The developments underscore growing friction at the intersection of maritime trade, legal sovereignty, and geopolitical rivalry.