US, China, and Panama tensions complicate CK Hutchison's $22.8B terminal sale, impacting global supply chains and shipping routes.
Political tensions involving the US, China, and Panama have complicated CK Hutchison's planned US$22.8 billion sale of its marine terminal portfolio, says Tri-Cities Intermodal CEO Ted Prince, writing in New York's Journal of Commerce.
The transpacific route remains the main pathway for Asia cargo bound for the US West Coast, but alternatives are now under scrutiny. Houthi militant attacks in the Red Sea since 2023 have forced carriers to reroute via the Cape of Good Hope, adding two weeks to transit times and absorbing spare capacity. Additionally, instability in Iran has further discouraged the use of the Suez Canal.
The Northern Sea Route presents a theoretical challenge, potentially cutting transit times by 20 to 40 percent; however, seasonality and the need for icebreakers limit its viability. Arctic warming has improved navigability, while political interest, including Donald Trump's focus on Greenland, has raised its profile.
In his 2025 inaugural address, Trump vowed to 'take back' the Panama Canal, citing alleged Chinese control. Soon after, CK Hutchison agreed to sell its terminals to a consortium led by US investors and Mediterranean Shipping Co., but political contention has stalled the deal.
Costly alternatives under discussion include the Kra Canal across Thailand and a Nicaragua Canal, both linked to China's Belt and Road initiative but hindered by financial and environmental barriers. Intermodal projects in Mexico, Honduras, and Nicaragua also face multi-billion costs, aiming to replicate the Panama Canal Railroad.
Prince concluded that despite the turbulence, the three main vessel routing options—transpacific, Suez, and Panama—remain the backbone of global trade for now.
