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China summons Maersk, MSC on ‘shipping operations’ amid Panama saga, Iran war shock

Beijing gave no reason for order – but both firms at centre of dispute after Panama ruled against CK Hutchison’s operation of two ports

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The main entrance of the port of Balboa in Panama City, taken on February 12. Panama Ports Company (PPC), a subsidiary of Hong Kong conglomerate CK Hutchison Holdings, is seeking US$2 billion in damages from the Panamanian government over what it described as the “illegal takeover” of the operations of two ports at either end of the strategic canal. Photo: AFP
Carol Yangin Beijing
China’s Ministry of Transport has summoned two maritime giants – Maersk and Mediterranean Shipping Company (MSC) – for talks on “international shipping operations” amid legal disputes over the Panama Canal, a vital artery for global trade.

No further details were provided in the one-sentence statement, which was posted on the ministry’s website on Tuesday. But in China, government summons often serve as a warning and, if ignored, could lead to further action.

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The move came as mounting geopolitical shocks – from Panama to the US-Israeli war with Iran – have severely affected shipping firms and port operators.
In late February, Panamanian authorities handed temporary control of two ports – previously run by CK Hutchison’s Panama Ports Company (PPC) – to Maersk’s APM Terminals and MSC’s Terminal Investment, respectively. The decision followed a court ruling that voided CK Hutchison’s long-term port concession, granted in the 1990s, as “unconstitutional”.

CK Hutchison, the Hong Kong-based conglomerate, has launched legal proceedings against the Panamanian government over the seizure of the two ports – Balboa and Cristobal – calling the takeovers “illegal”, according to a statement issued on Friday.

PPC has also filed for international arbitration against the government under International Chamber of Commerce rules, seeking at least US$2 billion in damages, the statement said.

Following the takeover, Beijing said it would resolutely safeguard the legitimate rights and interests of its enterprises.

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Maersk and MSC declined to comment when contacted by the South China Morning Post, saying they had no information to disclose at this time.

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