The US on Thursday accused China of detaining Panamanian-flagged ships in its ports, following the recent Supreme Court ruling that annulled the concession of two ports in the Panama Canal to a Chinese company. “China has imposed a dramatic increase in the detention of Panamanian-flagged vessels in Chinese ports under the pretext of port state control, far exceeding historical levels,” the US Federal Maritime Commission explained in a statement. “These more intensive inspections were carried out under informal directives and appear to be aimed at punishing Panama following the transfer of Hutchison's port assets,” the statement added. Panamanian courts declared in January that the contract allowing Panama Ports Company (PPC), a Hutchison subsidiary, to manage the ports of Balboa on the Pacific and Cristobal on the Atlantic since 1997 was unconstitutional.

Commercial and Strategic Consequences

“Given that Panamanian-flagged vessels carry a significant portion of U.S. container cargo trade, these actions could have significant commercial and strategic consequences for U.S. shipping,” the U.S. agency explained.

The Commission, the statement asserts, has the authority to investigate “whether the practices of foreign governments create unfavorable conditions for shipping in U.S. trade.”

PPC filed a complaint in February, in accordance with the rules of the International Chamber of Commerce (ICC) in Paris, and this The company announced that it is seeking at least $2 billion in damages.