Six Nations Condemn China’s Detention of Nearly 70 Panamanian Ships as Canal Dispute Escalates
The Background
On April 29, 2026, six nations — the United States, Bolivia, Costa Rica, Guyana, Paraguay, and Trinidad and Tobago — released a joint statement strongly criticizing China’s “targeted economic pressure” on Panama. The dispute stems from Panama’s Supreme Court ruling in late January that annulled contracts allowing a subsidiary of Hong Kong-based CK Hutchison to operate the Balboa and Cristóbal port terminals on the Panama Canal, deeming the decades-old agreements unconstitutional.
Ship Detentions Surpass Historical Norms
According to the US Federal Maritime Commission (FMC), China detained nearly 70 Panamanian-flagged ships in March — a figure “far exceeding historical norms.” In their joint statement, the six countries declared: “These actions — following the decision of Panama’s independent Supreme Court regarding the Balboa and Cristóbal terminals — are a blatant attempt to politicise maritime trade and infringe on the sovereignty of the nations of our hemisphere.”
US Response
US Secretary of State Marco Rubio separately stated on X that Washington was “deeply concerned” by China’s economic pressure on Panama. “We stand in solidarity with Panama. Any attempts to undermine Panama’s sovereignty are a threat to us all,” he said.
China has previously accused the US of “bullying” and attempting to smear its reputation in Latin America, while describing the Panamanian Supreme Court ruling as “absurd” and “shameful.”
Impact on Global Shipping
US Federal Maritime Commission head Laura DiBella warned last month that Beijing’s detention of Panamanian ships carried significant repercussions for both Panama and the United States. “These intensified inspections were carried out under informal directives and appear intended to punish Panama after the transfer of Hutchison’s port assets,” DiBella said.
She further cautioned: “Given that Panama-flagged ships carry a meaningful share of US containerised trade, these actions could result in significant commercial and strategic consequences to US shipping.”
Geopolitical Implications
The six-nation joint statement marks an escalation of the Panama Canal dispute from a bilateral friction point to a multilateral diplomatic confrontation. China has expanded its economic and infrastructure influence across Latin America through its Belt and Road Initiative in recent years, while the US has refocused on the region, intensifying diplomatic and security engagement in what it traditionally considers its sphere of influence.
Analysts note that control of the Panama Canal — a critical shipping artery connecting the Pacific and Atlantic Oceans — involves not just commercial interests but also broader strategic competition among major powers in the Western Hemisphere. With tensions in the Strait of Hormuz persisting, the contest for global shipping routes and port control is becoming increasingly acute.
Source: Al Jazeera