Hong Kong-based conglomerate CK Hutchison Holdings issued a warning on Thursday, stating it would pursue legal action against Danish shipping firm Maersk if the company proceeds to manage two Panama Canal ports without its approval. This move intensifies a brewing dispute over the strategic terminals, set against broader frictions between China and the United States.
Panama’s Supreme Court ruled in January that the 1997 concession contract allowing Hutchison to operate the Balboa port on the Pacific side and the Cristóbal port on the Atlantic was unconstitutional. The decision highlighted an imbalance that favored the company at the expense of the state, creating questions about the future of these facilities at the canal’s entrances.
In response, Panama President José Raúl Mulino declared that Maersk would step in temporarily to handle the ports until a new concession process concludes. Mulino faces external pressures from the U.S. regarding Chinese influence in the canal zone.
Hutchison responded with a statement asserting that any takeover of administration or operations without its consent would trigger lawsuits against Maersk or its affiliates. The company also criticized the Panamanian government for failing to offer assurances or clear guidance on its ongoing activities. It cautioned that enforcing the court’s ruling could halt port operations entirely.
A Maersk representative declined to address Hutchison’s threats directly, instead pointing to an earlier statement from APM Terminals, a Maersk subsidiary. The statement clarified that APM Terminals remains outside the active legal disputes and does not influence decisions on the ports’ short- or long-term management. However, it expressed readiness to manage the terminals on a temporary basis to prevent disruptions to regional and global trade.
The court deemed the contract, extended for another 25 years in 2021, unconstitutional due to its disproportionate benefits to Hutchison. Panama Ports Company, Hutchison’s local subsidiary, plans to contest the ruling at the International Chamber of Commerce in Paris, claiming significant harm and alleging a targeted effort by the state against it.
The U.S. welcomed the court’s decision. President Donald Trump had previously voiced intentions to reclaim control of the canal, arguing that China exerts undue influence through Hutchison’s ports, even though an independent Panamanian authority oversees the waterway.
China, via its Hong Kong and Macao Affairs Office, stated on Tuesday that Panama would face severe consequences for revoking the concession. Mulino fired back, affirming that Panama stands firm and rejects threats from any nation.
This legal battle unfolds during a stalled sale of the ports. Hutchison announced in March 2025 plans to sell its stake in a package of global assets, including the Panamanian terminals, to a consortium led by U.S. firm BlackRock for $22.8 billion.
The Panama Canal, which carries about 5% of global maritime trade, sees heavy use from both the U.S. and China. Constructed by the United States and opened in 1914, it transferred to Panamanian control on December 31, 1999, under bilateral agreements.
Stakeholders watch closely as the outcome could reshape trade dynamics in the region. For now, operations continue under the existing setup until the ruling takes full effect, but the threats signal potential for prolonged conflict.
Hutchison’s stance underscores the high stakes involved, with economic and geopolitical implications rippling beyond Panama’s borders. As talks proceed, the focus remains on maintaining smooth passage through this critical trade artery.
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