China's crackdown on Panama-flagged ships affects Japanese owners most, with 39% of detained vessels being Japanese, reports Container Management.
China's detention of nearly 70 Panama-flagged vessels is hitting Japanese shipowners hardest, with 39 percent of those held being Japanese-owned, reports London's Container Management.
The surge in detentions at Chinese ports is inflicting disproportionate damage on Japanese shipowners who have no stake in the Panama Canal terminal dispute driving the confrontation.
Lloyd's List data shows that 39 percent of the vessels held are Japanese-owned, highlighting how flag-state retaliation can ricochet through an industry where registration rarely reflects political allegiance.
The detentions follow Panama's Supreme Court annulment in January of CK Hutchison subsidiary Panama Ports Company's concession to operate the Balboa and Cristobal terminals, with interim operations handed to APM Terminals and Terminal Investment Limited.
China's response has included COSCO Shipping suspending operations at Balboa and the Ministry of Transport summoning Maersk and MSC to Beijing.
Chinese port authorities have launched detentions described by FMC chairman Laura DiBella as far exceeding historical norms and appearing intended to punish Panama after Hutchison's assets were transferred.
Of the 66 vessels detained for irregularities in March, 46 flew the Panama flag, with bulk carriers and ships more than 15 years old comprising the majority. Panama's registry is the world's largest, with about 8,000 merchant ships representing 16 percent of global fleet tonnage.
