U.S. Accuses China of Detaining Panama-Flagged Vessels After Canal Port Court Ruling

U.S. Federal Maritime Commission (FMC) Chairman Laura DiBella on Thursday warned that the FMC is closely monitoring a surge in detentions of Panama-flagged vessels by Chinese authorities after the Panamanian Supreme court annulled contracts that gave Hong Kong-based CK Hutchison control of two key Panama Canal ports.

DiBella, in an official statement, said that China’s retaliatory actions against the Panamanian vessels are affecting global shipping conditions — and emphasized that laws administered by the FMC empower it to investigate if regulations or practices of foreign governments result in conditions unfavorable to shipping in the foreign trade of the United States.

“China has now imposed a surge in detentions of Panama‑flagged vessels in Chinese ports under the guise of port state control, far exceeding historical norms,” DiBella said. “These intensified inspections were carried out under informal directives and appear intended to punish Panama after the transfer of Hutchison’s port assets.”