U.S. Secretary of State Marco Rubio on Thursday charged China with ‘bullying’ by holding up Panama-flagged ships at its ports.
Panama earlier accused Beijing of retaliation after it seized control of terminals run by a Hong Kong company at ports near the Panama Canal.
The detentions for short periods of time involve dozens of Panama-flagged vessels. The country maintains the world’s largest registry covering nearly 9,000 ships, including many operated by the biggest container lines.
“China’s decision to detain or otherwise impede Panama-flagged vessels engaged in lawful trade destabilizes supply chains, raises costs, and erodes confidence in the global trading system,” said Rubio on social media. “The United States stands with Panama against any retaliatory actions against its sovereignty and will always support our partners in the face of bullying.”
The conflict comes after President Donald Trump asserted the United States aimed to take back the waterway from what he said was Chinese control.
Panama’s Supreme Court in January invalidated operating concessions held by CK Hutchison (OTC: CKHUY) of Hong Kong at the ports of Cristobal and Balboa on either ends of the canal. It named the terminal units of Maersk (OTC: AMKBY) and Mediterranean Shipping Co. as interim operators.
In March about 75% of all ships detained in Chinese ports – or 92 of 124 vessels – were Panama-flagged, according to the regional port state control organization Tokyo MOU of 22 Asia-Pacific authorities.
The ship detentions ranged from one to 10 days prior to release, up from about 35% in January and February.
China criticized U.S. claims to the canal but did not address the detentions.
Read more articles by Stuart Chirls here.
Related coverage:
Strait of Hormuz closure pushes Asia-US ocean rates up 29%
Trump mulls Iran exit without re-opening Strait of Hormuz; new attack on tanker
South Korean-owned U.S. shipyard gets first Navy contract
U.S. ‘monitoring’ China retaliation against Panama ships
The post Rubio: China ‘bullying’ Panama by detaining ships appeared first on FreightWaves.
