Panama has formally taken control of two strategic ports at the entrances of the Panama Canal after its Supreme Court annulled long-standing concession contracts held by Hong Kong-based CK Hutchison.
The move transfers temporary operations of the Balboa and Cristobal terminals to subsidiaries of Maersk and MSC for up to 18 months.
The decision affects two key gateways handling cargo linked to nearly 5% of global maritime trade, escalating tensions amid ongoing U.S.–China rivalry over control of critical shipping routes.
The annulment targets concessions held by Panama Ports Company (PPC), a subsidiary of CK Hutchison Holdings, which has operated the Balboa and Cristobal terminals since 1997.
Panama’s Supreme Court ruled in late January that the original concession law, and a 2021 extension, were unconstitutional. The ruling became legally binding after publication in the official gazette on Monday.
Following the decision, Panama’s government issued a decree authorising the Panama Maritime Authority to assume immediate control of the ports.
The
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