Maersk to temporarily run two Panama Canal ports after court cancels Hutchison deal

Danish shipping company Maersk will temporarily take over the operation of two key ports on the Panama Canal, Panama’s maritime authority said on Friday.

The decision comes after Panama’s Supreme Court cancelled the port operation contract of Hong Kong-based CK Hutchison Holdings. The court ruled that the deal was unfairly biased in favor of the company.

The Balboa and Cristobal ports, located at opposite ends of the canal, will now be managed by APM Terminals, a subsidiary of Maersk. The company will act as a temporary administrator to ensure smooth operations.

The ports were previously run by Panama Ports Company, a unit of CK Hutchison, which had managed them since 1997 under a concession renewed in 2021 for 25 years.

The court decision followed growing political pressure, including repeated statements by former US President Donald Trump, who claimed China was effectively controlling the canal. Panama has consistently denied this claim.

The Panama Canal handles about 40 percent of US container traffic and around five percent of global trade. It was built and operated by the United States for nearly 100 years before control was handed over to Panama in 1999.

The United States welcomed the court ruling, while China said it would take steps to protect the interests of Chinese companies.

Panama Ports Company criticised the decision, saying it lacks legal grounds and could affect thousands of Panamanian families who depend on port-related jobs.

Panamanian President Jose Raul Mulino said the canal would continue operating without disruption. He added that a new port concession would be offered later under terms more favorable to Panama, though no timeline was given.

APM Terminals said it is ready to manage the ports during the transition period to maintain essential services.

Earlier this year, CK Hutchison announced plans to sell most of its stake in Panama Ports Company and several other non-Chinese ports to a group led by US investment firm BlackRock. However, the deal collapsed after objections from China.