The Panama Canal ports at the heart of a months-long U.S.-China dispute have officially and formally changed hands. On Monday, Panama annulled key concessions held by Hong Kong-based CK Hutchison, and handed the Balboa and Cristobal terminals — which CK Hutchison’s subsidiary, Panama Ports Company (PPC), had run for close to three decades — to Maersk and MSC under temporary 18-month arrangements. The Panama Canal ports sold story moves quickly on the heels of a Supreme Court ruling from late January, and analysts and observers are already describing the Panama Canal ports deal as one of the more consequential geopolitical shifts in global trade in recent memory. For anyone following the Panama Canal ports China tensions or the broader Panama ports US alignment question, right now is a significant moment.
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Panama Canal Ports Deal Sees U.S. Influence Rise, Maersk & MSC Takeover
What Actually Happened
Monday’s move started when Panama published the Supreme Court ruling in its official gazette, which formally and legally set the annulment in motion. The Panama Maritime Authority (AMP) took possession of both terminals by decree shortly after — cranes, vehicles, computer systems, software, all of it. Two temporary concession contracts, each running up to 18 months, were approved at the same time. APM Terminals Panama, a Maersk unit, was given the Balboa port on the Pacific side, and TIL Panama, part of MSC, took over Cristobal on the Atlantic side. APM Terminals confirmed Tuesday that temporary operations at the Balboa port had already started.
The head of the technical team that was in charge of the transition, Alberto Aleman Zubieta, affirmed that both the ports of the Panama Canal were already in the hands of the AMP once the ruling was declared legally binding when it was published.
CK Hutchison Says the Takeover Is Unlawful
CK Hutchison did not hold back. In a statement to the Hong Kong Stock Exchange, the company said Panamanian authorities made “direct physical entrance” to both terminals on Monday, removed PPC employees, and threatened them with criminal prosecution if they refused to leave. Staff were also apparently told not to make any contact with the company.
“CKH considers the ruling, the executive decree, the purported termination of PPC’s concession, and the takeover of the terminals to be unlawful. The actions by the Panama State also raise serious risks to the operations, health and safety at the Balboa and Cristobal terminals.”
— CK Hutchison, statement to the Hong Kong Stock Exchange
CK Hutchison is now consulting legal counsel on both national and international action against Panama and third parties. As far back as February 12, the conglomerate had already warned that “any steps” taken by Maersk or its subsidiary to operate the Panama Canal ports without its agreement would likely “result in legal recourse.” Hong Kong’s government also weighed in on Tuesday, expressing “strong dissatisfaction and opposition” and urging Panama authorities to respect the spirit of contracts and maintain a fair business environment.
CK Hutchison shares fell 1.9% on Tuesday. Hong Kong’s broader Hang Seng Index was also off 1.9% the same day.
Panama’s Position and the Geopolitical Backdrop
Panamanian President José Raúl Mulino addressed the seizure in a televised statement Monday afternoon, framing the temporary contracts as, in his own words, “a legitimate tool that respects asset ownership.” He was also direct on the expropriation question:
“Let me be clear, this does not imply an expropriation of those assets, but rather their use to ensure the operation of the ports until their real value is determined for the corresponding actions. I repeat, this is not an expropriation.”
Mulino also said the arrangement would stay in place while Panama works toward a new, more “competitive” concession framework, adding that he would approach the process “with the humility not to repeat the mistakes of the past.” He also confirmed that neither port operations nor employment would see any disruption throughout.
The Panama Canal ports China dimension to all of this has simmered for months now. Washington views the ruling that declared the CK Hutchison Panama concession unconstitutional as a major win. U.S. President Donald Trump had previously alleged that China was “running the Panama Canal” and pushed hard to cut that influence. The canal moves roughly 5% of global maritime trade, and this move shifted the Panama ports US alignment considerably. At the time of writing, Beijing hit back hard — it had already warned Panama it would “pay a heavy price both politically and economically” unless it reversed course, and reportedly told state firms to halt new project talks in the country while also pushing shipping companies to reroute through other ports.
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The $23 Billion Deal That Now Hangs in the Air
Worth noting also: the Panama Canal ports sold question now complicates CK Hutchison’s proposed $23 billion deal to sell dozens of port assets worldwide — including the Panamanian terminals — to a BlackRock-led consortium that also included MSC. Beijing had stalled that transaction earlier, describing it as “kowtowing” to American pressure. The CK Hutchison Panama concession unconstitutional ruling, combined with the direct takeover, has made the path forward for that sale considerably less clear.