US Federal Maritime Commission investigates China's detention of Panama-flagged vessels following Panama's seizure of CK Hutchison's terminals.
The US Federal Maritime Commission said it is monitoring China's detention of Panama-flagged vessels after Panama seized terminals from Hong Kong's CK Hutchison, reported American Shipper.
FMC Chairwoman Laura DiBella stated that inspections in Chinese ports have surged far beyond normal levels and appear intended to punish Panama following the transfer of Hutchison's assets. She emphasized that the Commission is closely watching the impact on global shipping.
In January, Panama's Supreme Court ruled Hutchison's concession to operate the Balboa and Cristobal terminals unconstitutional. Interim operating agreements were awarded to Maersk's APM Terminals and MSC's Terminal Investment Limited. Hutchison has filed for arbitration seeking more than US$2 billion in damages.
Following the ruling, China's Ministry of Transport held talks with Maersk and MSC, after which state-owned Cosco suspended services to Balboa and rerouted operations. Ms. DiBella warned that Panama-flagged ships carry a significant share of US containerized trade, raising commercial and strategic risks.
Panama is the world's largest ship registry, with more than 4,700 ships accounting for 15 percent of global tonnage. She noted that detentions or delays of vessels in US commerce undermine the Commission's mandate to protect supply chain reliability.
Ms. DiBella did not specify what measures Washington might take to counter China's actions.
