Panama Seizes Two Key Ports from Hong Kong Group Amid U.s.-China Canal Dispute

CK Hutchison’s Struggle in Panama

“CKH considers the ruling, the executive decree, the purported termination of PPC’s concession, and the takeover of the terminals to be unlawful,”

CK Hutchison, a Hong Kong conglomerate operating under the banner of CK Group, found itself in a legal quagmire when Panama’s Supreme Court annulled its contracts for two key ports. The Balboa and Cristobal terminals near the Panama Canal were seized by Panamanian authorities, marking a significant setback for CK Hutchison as it grapples with the implications.

U.S.-China Trade Rivalry

Amid growing tensions between Washington and Beijing over global trade routes, this development is seen as part of an escalating battle. U.S. President Donald Trump has long sought to curb Chinese influence over key maritime chokepoints like the Panama Canal, which handles about 5% of global maritime trade.

Panama’s Decree and Maersk’s Move

“Let me be clear, this does not imply an expropriation of those assets, but rather their use to ensure the operation of the ports until their real value is determined for the corresponding actions,” said Panama President José Raúl Mulino.

President Mulino’s decree aims to manage the transition temporarily by granting Maersk and Mediterranean Shipping Company (MSC) licenses to operate the Balboa and Cristobal terminals. Maersk confirmed it had begun operations at Balboa, while TIL Panama will run operations at Cristobal.

The Future of CK Hutchison’s Port Sale Plans

CK Hutchison is now facing the prospect of legal battles both in Hong Kong and internationally as it seeks to challenge the Panamanian decision. The move could disrupt its proposed $23 billion sale of ports worldwide, including those in Panama, to a consortium led by BlackRock and MSC.

You might think this is new, but in reality, it’s just another chapter in the ongoing saga of global trade politics. CK Hutchison’s struggle is emblematic of the broader challenges faced by companies operating at the intersection of international law and geopolitical tensions.