FMC Warns of China's Panama Ship Detentions Affecting U.S. Trade

Key Details The U.S. Federal Maritime Commission is closely monitoring China's surge in detentions of Panama-flagged vessels at Chinese ports. FMC Chair Laura DiBella stated that China has detained Panamanian ships far exceeding historical norms, apparently in retaliation for Panama's seizure of Hong Kong-based CK Hutchison's terminal operations near the Panama Canal. Why It Matters Panama is the world's largest ship registry, with over 4,700 vessels representing 15% of global maritime tonnage. Many of these ships carry substantial U.S. containerized trade, making the detentions a potential threat to American supply chain reliability and commerce. Background In January, Panama's Supreme Court ruled that Hutchison's terminal concessions were unconstitutional and awarded 18-month operating agreements to Maersk's APM Terminals and Mediterranean Shipping Company's subsidiary. Following high-level talks with Maersk and MSC, Chinese state-owned carrier Cosco suspended Balboa services and rerouted operations. Next Steps DiBella emphasized that foreign government actions targeting vessels in U.S. commerce contradict the FMC's mandate to protect supply chain integrity. The situation underscores growing geopolitical tensions around the Panama Canal, which Trump administration officials have previously claimed should be under U.S. control.