Sharp Increase in Detentions of Panama-Flagged Vessels; Panamanian Officials Visit Beijing to Resolve Dispute

Panamanian officials are traveling to Beijing in an effort to resolve a dispute. Earlier, Chinese authorities significantly intensified the detention of Panama-flagged vessels, leading hundreds of ships to exit Panama's ship registry. The conflict escalated in February, when Panama, under immense pressure from the United States to curb China’s influence over the Panama Canal, took over two ports previously operated by CK Hutchison (based in Hong Kong), after Panama’s Supreme Court had earlier ruled the company’s concession invalid.

Subsequently, China dramatically increased detentions of vessels flying the Panamanian flag—Panama has the world’s largest ship registry. According to data from China’s Maritime Safety Administration, the number of Panamanian vessels intercepted by China in the four months ending June was four times higher than during the same period in the previous year. Chinese authorities stated these detentions were related to safety concerns.

Data from Lloyd’s List shows that hundreds of vessels appear to have withdrawn from Panama’s registry as a result. The number of vessels flying the Panamanian flag decreased by 15 in March, 60 in April, 181 in May, and 281 in June.

President José Raúl Mulino of Panama had previously stated in June that these detentions lacked justification, but both sides are now working toward resolving the issue.

The aforementioned officials will hold meetings in Beijing on Thursday, discussing topics including enhanced cooperation, renewal of maritime agreements, and technical exchanges on port state control.

According to Chinese authorities, a total of 431 vessels flying the Panamanian flag were detained between March and June this year, compared to 98 during the same period last year. Although the number of detentions in June declined compared to May, it remained four times higher than the same month last year.

The proportion of Panama-flagged vessels among all detained ships rose from 33.7% in the first five months of 2025 to 70.6% in the same period this year.

At a regular press briefing on Monday, China’s Foreign Ministry spokesperson Lin Jian said, “Data from relevant Chinese authorities show that since the beginning of this year, Panama-flagged vessels have been involved in multiple accidents of significant or higher severity within China’s waters, making them the country with the highest share of such incidents among flag states. From January to July this year, the cumulative number of calls by Panama-flagged vessels to Chinese ports accounted for nearly 20% of all foreign-flagged vessels calling at Chinese ports, while their share of maritime accidents and fatalities or missing persons reached approximately 50% each.”

Lin Jian added, “Port State Control inspections are an essential measure to ensure vessel navigation safety and clean water environments, serving as the primary means by which countries manage the safety of foreign-flagged vessels arriving at their ports. China places high importance on maritime traffic safety and personal safety, conducting Port State Control inspections on vessels docking at Chinese ports in accordance with laws and regulations, fully consistent with international conventions.”

A report by the Financial Times noted that maritime security firm Ambrey pointed out in May that some Chinese leasing companies are no longer requiring new financing arrangements to be linked to vessels flying the Panamanian flag. The number of ships registered under Panama’s flag peaked last August, exceeding 7,500 vessels.

Due to ongoing tensions related to Iran and the de facto closure of the Strait of Hormuz, the strategic importance of the Panama Canal to global trade is growing increasingly evident. Since the outbreak of the U.S.-Israel-Iran conflict at the end of February, daily traffic through the canal has increased by about 20%. This is particularly critical for Asian traders seeking goods from the U.S. Gulf Coast.

As Panama seeks to defuse this dispute, U.S. officials continue to criticize Beijing over the detention incidents. Trump reiterated this month that China aims to take over the Panama Canal. Meanwhile, U.S. Ambassador to the UK Warren Stephens stated that Beijing is attempting to punish Panama.

Source: rfi

Original article: toutiao.com/article/1870917388523596/

Disclaimer: The views expressed in this article are solely those of the author.