In March 2026, 91 out of 123 vessels detained at Chinese ports were Panama-flagged, a spike the FMC called far beyond historical norms. The detentions appear linked to Panama’s revocation of CK Hutchison’s canal port concession. COSCO has suspended services at Balboa. This post explains the dispute, the operational risks for shippers, and what to…
Key Takeaways
• In March 2026, 91 out of 123 vessels detained at Chinese ports were registered under Panama’s flag. That is roughly 74%, far above any historical norm.
• The detentions are widely understood as retaliation after Panama’s Supreme Court voided CK Hutchison’s concession to operate the Balboa and Cristobal terminals at the Panama Canal.
• The U.S. Federal Maritime Commission (FMC) is “closely monitoring” the situation. FMC Chairman Laura DiBella said the inspections “appear intended to punish Panama” and were carried out under “informal directives.”
• COSCO has suspended services at Panama’s Balboa port and rerouted operations to other terminals. CK Hutchison is pursuing over $2 billion in arbitration claims against Panama.
• Panama is the world’s largest ship registry by number of vessels. The flag is used across container, tanker, and bulk fleets globally, including by Chinese carriers. That means the impact is not limited to one trade lane.
• For shippers and forwarders, the risks are vessel delays at Chinese ports, potential schedule disruption, and uncertainty about how far the retaliation extends. <What Happened: The Panama Canal Port Dispute
The chain of events starts in Panama, not China.
(....)