Panama-flagged vessels faced an unusual spike in detentions at Chinese ports in early March. According to industry sources, this situation is being regarded as a coordinated response to Panama's decision to revoke CK Hutchison's terminal concessions. Between 8-12 March, Chinese authorities detained 28 Panama-flagged ships, representing 75.7 per cent of all vessel detentions in the country during that period.
According to data from the Tokyo Memorandum of Understanding on Port State Control (Tokyo MoU), no five-day window since January 2025 had recorded more than 11 Panamanian vessel detentions. In previous periods where Panama accounted for 75 per cent of detentions, the numbers had been far smaller. The five-day total of 28 detentions already exceeds the monthly totals for Panama-flagged vessels in 2025, when the share typically ranged between 28 and 48 per cent.
Industry analysts suggest that the inspection spike is used as a strategic pressure tool, not a temporary one. Panama is one of the world's largest flag states; many commercial vessels calling at Chinese ports sail under the Panama flag. A prolonged crisis could adversely affect freight rates, ship routes, and Panama's flag-state revenues. Diplomatic contacts between the Panamanian and Chinese governments continue intensively.
Key Takeaways:
1. Panama-flagged vessels faced an unusual spike in detentions at Chinese ports in early March.
2. 28 Panama-flagged ships were detained between 8-12 March — 75.7 per cent of the period's detentions.
3. The sector interprets this as a coordinated response to Panama's revocation of CK Hutchison terminal concessions.
4. The five-day total exceeds 2025's monthly Panama-flagged detention figures.
5. The crisis could affect freight rates, routes, and Panama's flag-state revenues.
