Full Breakdown
US and Latin American Allies Condemn Chinese Pressure on Panama-Flagged Shipping
4/29/2026, 5:17:31 AM
Joint Statement Reaffirms Panama’s Sovereignty
On 28 April 2026 the United States, Bolivia, Costa Rica, Guyana, Paraguay and Trinidad and Tobago issued a joint statement condemning China’s “targeted economic pressure” on Panama-flagged vessels. The statement, released by Secretary of State Marco Rubio, affirmed that Panama “is a pillar of our maritime trading system” and must remain free from “any undue external pressure.” The signatories pledged solidarity with Panama and called for respect of hemispheric peace, security and prosperity.
Background: Panama Court Ruling and Port Concession Changes
In late January 2026 Panama’s Supreme Court invalidated the 1997 concession that gave CK Hutchison’s Panama Ports Company the right to operate the Balboa (Pacific) and Cristóbal (Atlantic) terminals of the Panama Canal. The ruling ended three decades of Hutchison control, placed APM Terminals (A.P. Moller-Maersk) at Balboa and Terminal Investment Limited (Mediterranean Shipping Company) at Cristóbal, and prompted Hutchison to launch an arbitration claim for more than US $2 billion in damages.
Data on Chinese Detentions of Panama-Flagged Vessels
Shipping data from The Loadstar indicated that in March 2026 Chinese port-state inspections led to 91 of 123 detentions of Panama-flagged vessels, a marked increase from earlier months. Federal Maritime Commission Chair Laura DiBella warned that China was using such inspections to pressure Panama after the court ruling.
Chinese Response and Counter-Arguments
Beijing criticized the removal of the Hong Kong-linked operator and rejected U.S. accusations that detentions were politically motivated. Chinese authorities say inspections follow safety and compliance standards, not geopolitical leverage.
Conflicting Reports and Information Gaps
The detention numbers come from industry analysis, not official Chinese statistics, so the exact scale is unverified. The joint statement notes the Panama Canal moves about 5 % of global maritime trade, but the economic impact of the detentions is not quantified. Hutchison’s arbitration claim remains unresolved.
Verbatim Quotes
- “We are monitoring with vigilance China’s targeted economic pressure and the recent actions that have affected Panama-flagged vessels,” — Joint Statement
- “Panama is a pillar of our maritime trading system, and as such must remain free from any undue external pressure.” — Joint Statement
- “Any attempts to undermine Panama’s sovereignty are a threat to us all.” — Joint Statement
- “Through our renewed commitment to peace, security, and Hemispheric cooperation, we remain dedicated to facing all threats to ensure the Americas remain a region of freedom, security, and prosperity,” — Joint Statement
Outlook: Arbitration and Ongoing Monitoring
CK Hutchison’s arbitration seeks compensation of over US $2 billion, while the United States and its allies have pledged continued vigilance over Chinese actions affecting Panama-flagged shipping. Diplomatic channels remain open for dialogue on the dispute and its implications for hemispheric trade security.
