Beijing: China has sharply increased the detention and inspection of ships sailing under Panama’s flag, raising concerns of a growing trade dispute linked to control over key ports near the Panama Canal.
The United States Federal Maritime Commission said nearly 70 Panama flagged vessels were detained at Chinese ports in recent weeks, a level far higher than usual. Officials in Washington believe the actions are not routine inspections but are likely connected to rising geopolitical tensions.
The issue follows a major decision by Panama earlier this year to cancel a long standing port concession held by Hong Kong based CK Hutchison Holdings. The company had operated important ports at both ends of the Panama Canal for almost three decades.
After the cancellation, Panama handed temporary control of the ports to new operators, including APM Terminals and Terminal Investment Limited. The move came as the United States increased pressure to limit Chinese influence over the canal, which is one of the world’s most important shipping routes.
In response, Chinese authorities are believed to have tightened inspections on Panama flagged ships entering their ports. Reports say shipping companies have been called for meetings in Beijing, showing the seriousness of the situation.
The dispute has also taken a legal turn. CK Hutchison Holdings has filed arbitration claims worth more than two billion dollars against Panama, challenging the decision to cancel its concession. At the same time, a large global ports deal involving major international players has faced uncertainty due to the ongoing tensions.
Industry experts warn that the increased inspections could slow down global trade. Panama flagged vessels make up a large share of international shipping, and delays at ports can lead to higher costs and supply chain disruptions.
The Federal Maritime Commission has said it is closely monitoring the situation and may take further action if needed.
The developments highlight how competition over strategic infrastructure like the Panama Canal is becoming part of a wider rivalry between major powers. What began as a dispute over port control is now affecting global shipping and raising fears of further escalation.