2 April 2026

The US Federal Maritime Commission (FMC) has reported an unprecedented surge in the detention of Panama-flagged vessels at Chinese ports, with nearly 70 ships held since early March 2026. This aggressive spike in inspections is viewed as a retaliatory move by Beijing following a Panamanian Supreme Court ruling that invalidated port concessions held by the Hong Kong-based conglomerate CK Hutchison.

Following the removal of the Chinese-linked operator, Panama appointed US-affiliated subsidiaries of Maersk and MSC as interim managers, a shift influenced by Washington’s efforts to curb Chinese control over the Panama Canal. FMC Commissioner Laura DiBella suggested these detentions are intended to punish Panama for the asset transfer. Given that Panama-flagged ships carry a significant portion of global trade, the FMC is now investigating whether China’s actions constitute an unfair disruption to international commerce and the strategic waterway that handles 5% of global maritime traffic.

Source: Central America Briefing | Vol 14, Issue 7