The US maritime regulator has once again expressed concern over China's detention of Panama-flagged vessels, which could lead to actions against Chinese carriers operating in the US.
Laura DiBella, commissioner of the Federal Maritime Commission (FMC), reported that inspections of Chinese ports regarding Panama-flagged vessels are ongoing "with no signs of abating." She characterized the detentions as retaliatory measures and noted that they appear aimed at punishing Panama for a Supreme Court decision that annulled the concession previously held by Hong Kong's CK Hutchison for the Balboa and Cristobal terminals on either side of the Panama Canal.
DiBella added that Panama-flagged vessels account for a significant portion of US trade, and unjustified detentions could have commercial and strategic repercussions for American shipping. She emphasized that the world should not normalize such practices, warning that it would create a damaging precedent for global supply chains.
The FMC has the authority to investigate whether the rules or practices of foreign governments create unfavorable conditions for US foreign trade. DiBella noted that an investigation into actions at Chinese ports could lead to measures, including actions concerning Chinese carriers operating in the US.
This warning follows a previous statement from the FMC in March, when DiBella reported that the agency was closely monitoring China's actions against Panama-flagged vessels following a sharp increase in detentions.
Earlier in the industry, reports indicated a rise in the detention of Panama-flagged vessels in Chinese ports to 136 vessels in April, following a sharp spike in March when Panama-flagged vessels accounted for about three-quarters of all detentions in Chinese ports.
These figures indicate a sharp increase compared to January and February and suggest that pressure on Panama-flagged vessels has gone beyond isolated cases of port state control.
China has rejected accusations of deliberately detaining Panama-flagged vessels and countered US allegations, stating that Washington is using the canal dispute to increase pressure on Beijing.
The conflict arose from Panama's decision to take control of the concessions for the Balboa and Cristobal terminals after the Supreme Court ruled the concession related to CK Hutchison unconstitutional. Panama later appointed APM Terminals and Terminal Investment Limited from MSC as temporary operators until a new process is initiated.
