Maersk to Temporarily Manage Panama Canal Ports Following Court Decision

Danish shipping giant Maersk will take temporary control of two key Panama Canal ports after Panama’s Supreme Court ruled contracts held by Hong Kong-based CK Hutchison were unconstitutional.

The Panama Maritime Authority (AMP) confirmed on Friday that APM Terminals, part of the Maersk Group, will serve as the “temporary administrator” for the Balboa and Cristobal ports, located at either end of the canal. CK Hutchison’s subsidiary, Panama Ports Company (PPC), had managed these ports since 1997 under a concession extended in 2021 for 25 years.

The court annulled CK Hutchison’s contracts, citing a “disproportionate bias” favoring the Hong Kong company. This ruling follows repeated warnings from US President Donald Trump, who suggested the United States might intervene if the canal was effectively under Chinese control.

The Panama Canal, a vital artificial waterway linking the Pacific and Atlantic Oceans, handles around 40% of US container shipping and roughly 5% of global trade. Panama has managed the canal since 1999 after taking control from the US, which originally built it between 1904 and 1914.

The decision was welcomed in Washington, while China’s Foreign Ministry emphasized that Beijing would protect the rights of Chinese companies. PPC, meanwhile, criticized the ruling, saying it “lacks legal basis” and threatens the livelihoods of thousands of Panamanian families dependent on port operations.