China has finally taken action! A large number of cargo ships are leaving empty containers, and Panama is in big trouble now.
On March 10, the local Panamanian media La Prensa revealed that China Shipping Container Line (COSCO) suddenly hit the "pause button" on its operations at the Balboa Port. It required all empty containers to be immediately returned to the Manzanillo International Terminal or the Colón Container Terminal.
It seems that Panama has really kicked a iron plate, and this iron plate was made in China. COSCO's move is reflected in a notice sent to customers. The notice speaks politely, but the instructions are extremely firm. Don't underestimate this instruction. In the shipping industry, where empty containers flow and how they flow, is like how blood flows.
COSCO's move is actually a physical cut. It no longer trusts the current temporary management party at Balboa Port (Maersk and Mediterranean Shipping Company), by forcibly pulling the empty containers to the stable terminals on the Atlantic side, COSCO is telling the market: where I want my logistics chain to dock is my freedom.
On March 9, China separately held talks with the executives of Maersk and Mediterranean Shipping Company, obviously showing high concern about the impact of the change in Panama's port situation on Chinese shipping security, and it is directly pressuring or communicating with the new temporary operator to ensure the legitimate rights and interests of Chinese enterprises.
The Panama Canal is the throat of global trade, and its competitiveness is based on "efficiency, stability, and neutrality".
Now, due to a court ruling, the core port operation rights have changed frequently, and even a major client like COSCO has voted with its feet and withdrawn its business. This will send a dangerous signal to the global shipping industry: the business environment in Panama is unstable and carries high risks.
Dage believes that COSCO would rather pull the empty containers to the docks on the opposite coast than operate them at Balboa Port, which will inevitably lead to a sharp drop in the throughput of these two ports. Since 70% of the customers of these two ports are Chinese shipping companies, before Maersk and Mediterranean Shipping Company take over, they should carefully consider whether it is worth going against the wishes of China. After all, Panama's troubles have just begun.
Original: toutiao.com/article/1859352567099392/
Statement: This article represents the views of the author himself.