This aerial photo shows a cargo ship leaving the Panama Canal on the Pacific side of Panama City on October 6, 2025.
Martin Burnetti | Martin Burnetti AFP | Getty Images
Panama announced in the Official Gazette on Monday that it had revoked the main port contract held by a subsidiary of Hong Kong-based CK Hutchison and transferred interim operation of the port to Danish shipping giant AP Moller-Maersk and Switzerland-based Mediterranean Shipping Company.
The notice formalizes the Supreme Court’s ruling last month that the interests in the Balboa and Cristobal terminals near the Panama Canal, held for more than 20 years by the Panama Ports Corporation, a subsidiary of CK Hutchison, are unconstitutional.
The Panamanian government on Monday formally took over management of the port facilities, including cranes, vehicles, computer systems and software, under a decree aimed at ensuring uninterrupted operations until a new concession is granted within 18 months.
Under the tentative agreement, APM Terminals, a division of Maersk, will operate Port Balboa on the Pacific side of the canal, and Terminal Investments, a port operating subsidiary of MSC, will operate Port Cristobal on the Atlantic side.
shares of CK Hutchison The stock fell 0.9% on Tuesday. The stock is up more than 20% so far this year.
CNBC reached out to CK Hutchison, Panama Ports Company, Maersk and MSC for comment, but did not receive a response in time for publication.
The smoldering conflict has become a geopolitical flashpoint between the United States and China, with Panama also caught in the crossfire.
CK Hutchison negotiated a $23 billion deal with a BlackRock-led consortium to sell port assets outside China after US President Donald Trump claimed last year that China was “running the Panama Canal.” The Chinese government quickly intervened, describing the sale as a “humiliation” to U.S. pressure and stalling the deal.
The Hong Kong conglomerate has rebelled since last month’s ruling and has started arbitration proceedings against Panama. On February 12, CK Hutchison said it would likely “recourse to legal action” if Maersk or its subsidiaries take “any steps” to operate the port without an agreement.
Beijing also warned that the Central American country “will pay a heavy political and economic price” if it does not change course.
The Panama court’s ruling is seen as a major victory for the United States, given that the White House has made curbing China’s influence on global trade arteries one of its top priorities.
Bloomberg reported last week that China has told state-owned companies to halt talks over new projects in Panama and urged shipping companies to consider rerouting cargo through other ports.
— CNBC’s Emily Chang contributed to this article.
