Danish maritime outlet ShippingWatch, citing security firm Ambrey, reported that Chinese port detentions of Panama-flagged vessels reached 136 ships in April 2026. The figure is roughly 6.4 times the 2025 monthly average and follows the sharp March spike (91 of 123 detentions, about 74%). The US Federal Maritime Commission described the March number as 'far exceeding historical norms.'
The friction began in late January when Panama's Supreme Court annulled Hong Kong-based CK Hutchison's contracts to operate the Balboa and Cristobal terminals on the Panama Canal as unconstitutional. After the cancellation, a Maersk-MSC joint venture began temporarily managing the terminals; China responded with 'targeted economic pressure' on Panama, subjecting Panama-flagged tankers to lengthy inspections at Chinese ports.
In early April US Secretary of State Marco Rubio accused China of 'harassing Panama-flagged ships,' and Bolivia, Costa Rica, Guyana, Paraguay and Trinidad and Tobago co-signed a statement of support for Panama. China rejects the claims; Foreign Ministry spokesperson Lin Jian called the accusations 'completely unfounded.' The arbitration over Hutchison's planned sale of its global terminal portfolio to a BlackRock-led consortium is also being watched closely by Beijing.
From a supply chain standpoint, the Panama flag accounts for about 16% of the world fleet; prolonged inspections are introducing delays for tanker, LNG, LPG and bulk operators, raising insurance premiums and creating uncertainty in contract renewals across the US-Panama-China triangle. Some owners are weighing flag changes to Marshall Islands or Liberia, while forwarders such as Kuehne+Nagel are advising customers to avoid Panama-flagged tonnage on China-linked cargoes.
Key Takeaways:
1. Ambrey data: 136 Panama-flagged ships detained at Chinese ports in April 2026 — 6.4x the 2025 average.
2. March 2026: 91 of 123 detentions (~74%) were Panama-flagged.
3. Crisis began when Panama's Supreme Court annulled CK Hutchison's Balboa/Cristobal terminal contracts.
4. A Maersk-MSC joint venture is temporarily running the terminals.
5. Panama flag is ~16% of world fleet; forwarders now advise alternative flags on China-linked cargoes.
