WASHINGTON – U.S. Secretary of State Marco Rubio has recently accused China of “bullying” tactics in relation to the detention of numerous Panama-flagged ships. This incident follows Panama’s controversial decision to seize control of two significant ports on the Panama Canal from a subsidiary of a Hong Kong-based company earlier this year. The ramifications of this action have sparked considerable tension between the United States and China.
According to Secretary Rubio, China’s actions—detaining or delaying Panama-flagged vessels—have destabilized global supply chains, increased costs, and undermined confidence in international trade. “The United States stands with Panama against any retaliatory actions against its sovereignty and will always support our partners in the face of bullying,” he asserted via social media.
Data from the Tokyo MOU, a regional port state control organization, reveals that of the 124 ships detained in Chinese ports for inspection in March, 92—nearly 75%—were Panama-flagged. These vessels typically faced brief detentions ranging from one to ten days before being released, a significant increase compared to previous months.
China has firmly denied these allegations. Liu Pengyu, spokesperson for the Chinese embassy in Washington, stated that the accusations reflect the U.S. attempt to regain control over the Panama Canal. The U.S. government has viewed this critical maritime trade route as strategically vital, both from a commercial and military perspective.
The backdrop of this diplomatic strife includes a ruling by Panama’s Supreme Court in January, which deemed the concession held by CK Hutchison Holdings over the Balboa and Cristóbal terminals unconstitutional. This ruling has intensified the U.S. government’s pressure on Panama and other Latin American nations to diminish China’s influence in the region.
The Federal Maritime Commission in Washington has been closely monitoring the situation concerning Panama-flagged vessels detained in Chinese ports. Laura DiBella, chair of the commission, highlighted the disruptive nature of China’s actions, stating that no other country in recent history has conducted inspections and detentions in such a punitive manner.
In response to the escalating tensions, Panama’s government has indicated that APM Terminals, a subsidiary of the Danish group A.P. Moller-Maersk, will temporarily manage the terminals while a new contract is negotiated. Despite the increasing detentions, Panama’s foreign minister, Javier Martínez, has sought to downplay the geopolitical implications, describing the detentions as routine maritime practices.
Former president of the Panama Maritime Chamber, José Digeronimo, warned that the situation could significantly impact Panama’s economy, particularly its ship registry operations, which generate around $100 million annually. He cautioned that if China were to impose restrictions on the use of the Panamanian flag, it could deter shipowners from registering their vessels in Panama.
As this situation unfolds, the complexities of international relations and economic dependencies become increasingly evident. The ramifications of these tensions extend beyond the immediate parties involved, potentially affecting global trade dynamics and regional stability.
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Solís reported from Panama City. Associated Press writers Megan Janetsky and Alexis Triboulard in Mexico City contributed to this report.
