Media: The Panama Canal Dispute: China Shipping Suspends Operations at Balboa Port

According to an internal memo published by Panamanian media, China Shipping announced on Tuesday (March 10) that it would suspend operations at the Balboa port following a court ruling in Panama that revoked the port concession held by Hong Kong's CK Hutchison Holdings Limited.

The memo was published by the Panamanian newspaper La Prensa. China Shipping, a state-owned enterprise based in Shanghai, stated in a memo sent to its customers: "We will no longer conduct any ship departures or arrivals at the Balboa port."

China Shipping informed its clients: "We recommend you take necessary measures to avoid any delays or disruptions in logistics." However, it did not specify whether this suspension of operations is permanent or temporary.

China Shipping has not responded to Reuters' request for comment. AFP is currently unable to independently verify this information.

It was reported that after a Panamanian court ruled that the contract held by the subsidiary of CK Hutchison Holdings Limited, Panama Ports Company (PPC), which had been operating the Cristobal and Balboa ports on the Atlantic coast since 1997, was invalid, Panama also reclaimed control of the Balboa port and another port. On February 23, Panamanian authorities took over the Balboa port located on the Pacific coast.

Subsequently, China threatened to make this Central American country pay a "heavy price". Last year, 38% of containers passing through Panama went through these two ports.

Since Panama took over these two ports, the Balboa port has been operated by APM Terminals, a subsidiary of Danish Maersk Group. The Cristobal port is managed by Terminal Investment Limited (TiL), a subsidiary of Mediterranean Shipping Company (MSC), an Italian-Swiss shipping giant, under an 18-month contract with the government.

According to an informed source interviewed by AFP, China Shipping's decision "resembles a symbolic protest against the cancellation of the PPC contract and the takeover of the ports," which China and CK Hutchison Holdings consider "illegal."

The acquisition of these two terminals comes at a time when the United States is trying to limit China's influence over the Panama Canal. The Panama Canal is a strategic route, 80 kilometers long, through which about 5% of global maritime trade passes.

Sino-US Geopolitical Tensions

According to Reuters, CK Hutchison Holdings announced in March 2025 a plan to sell 43 ports in 23 countries to a consortium led by BlackRock Group and the family shipping company of Italian Gianluigi Aponte, MSC, including the Balboa and Cristobal ports near the Panama Canal.

This agreement quickly became entangled in Sino-US geopolitical tensions, amid broader trade disputes between the two countries and President Trump's call for greater U.S. control over the canal, which won praise in Washington but drew criticism from Beijing.

Under close scrutiny from Beijing, CK Hutchison Holdings said in July that it was in talks with the consortium, hoping they could introduce a major Chinese "strategic investor" to join the bid. According to sources, China Shipping was this investor.

In a statement, the National Development and Reform Commission said that on Tuesday, the agency held meetings with executives from Maersk Shipping and Mediterranean Shipping Company (MSC), but did not specify the purpose of the meetings in detail.

Source: rfi

Original: toutiao.com/article/1859380858072074/

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