In a significant geopolitical shift for global maritime trade, Danish shipping giant Maersk has assumed temporary control of two strategic Panama Canal ports after Panama’s Supreme Court invalidated concession contracts held by Hong Kong-based CK Hutchison. The ruling follows repeated warnings from former U.S. President Donald Trump regarding Chinese influence over the critical waterway.
The Panama Maritime Authority (AMP) announced Friday that Maersk’s subsidiary APM Terminals will administer the Balboa and Cristobal ports, which occupy crucial positions at both Atlantic and Pacific entrances to the canal. These facilities handle substantial portions of global container traffic passing through the interoceanic corridor.
CK Hutchison, operating through its local subsidiary Panama Ports Company (PPC), had managed these terminals since 1997 under a concession extended in 2021 for an additional 25 years. The court determined the contract exhibited “disproportionate bias” favoring the Hong Kong conglomerate, prompting its termination.
The 82-kilometer artificial waterway processes approximately 40% of U.S. container traffic and 5% of global trade. Panama assumed full control in 1999 after the United States, which financed and constructed the canal between 1904-1914, transferred administration.
The United States government welcomed the judicial decision, while Chinese Foreign Ministry spokesperson Guo Jiakun warned Beijing would “take all necessary measures to protect the legitimate rights and interests of Chinese companies.” PPC condemned the ruling as “lacking legal basis” and expressed concerns about potential impacts on thousands of Panamanian families’ livelihoods.
Despite allegations, Panama continues to deny that China exercises control over the canal, which remains predominantly utilized by vessels from the United States and China.