Panama–COSCO standoff escalates
Panama has asked Chinese carrier COSCO to return after a court annulled its port contract, and Beijing is threatening retaliation—creating fresh uncertainty for Canal transits and slot availability, reported this week. The diplomatic spat raises real risks for Caribbean importers who rely on predictable Panama Canal windows and vessel rotations.
Panama’s Supreme Court ruled on Jan. 29, 2026 that the concessions held by a CK Hutchison unit to operate the Balboa and Cristóbal terminals were unconstitutional and ordered their termination. maritimenews.com Panamanian authorities took direct control of the two Canal-flanking terminals on Feb. 23, 2026, and the government appointed APM Terminals (a unit of Maersk) to manage operations on a temporary basis for up to 18 months. straitstimes.com COSCO issued a client notice dated March 10, 2026 that suspended all departures and arrivals at the Balboa port, cancelled confirmed bookings, and stated that cargo already on site would be processed as normal. bloomberg.com The same COSCO notice directed empty containers to be returned to Manzanillo International Terminal or the Colón Container Terminal, signalling immediate chassis/container repositioning across the isthmus. maritimeprofessional.com Panama’s port system moved roughly 9.9 million TEUs in 2025, with Balboa handling about 2.7 million TEUs and Cristóbal about 1.2 million TEUs — a combined 3.9 million TEUs that feed canal-related transits. en.portnews.ru Beijing has warned of a “heavy price” after the ports dispute and has instructed state-owned firms to halt talks on new Panamanian projects while Chinese authorities previously encouraged shippers to reroute via non‑Panama ports if it did not add significant cost. bloomberg.com
