Panama says China taking steps to resolve ship detention issue amid bilateral tension

Panamanian President José Raúl Mulino expressed satisfaction Monday that China has "begun to take steps" to resolve the issue of increased detentions of Panamanian-flagged ships in Chinese ports. The problem has led to over 200 ships being de-registered from Panama's flag.

Mulino stated that technical discussions at the Ministry of Transport level in China are underway to address the situation. He highlighted the significant increase in detentions, from a usual 30-40 to 140, without verifiable technical or maritime safety causes. "There is no correlation or justified cause," he lamented during the opening of the Organization of American States (OAS) General Assembly in Panama.

"We demand with all our strength that these detentions cease immediately," Mulino declared, asserting that international maritime law, innocent passage, and freedom of trade must not become instruments of political pressure. This statement comes amid bilateral tensions stemming from the February exit of Chinese conglomerate CK Hutchison from operating two ports near the Panama Canal, following a Supreme Court ruling.

China had previously warned Panama would pay a "high price" for the conglomerate's removal. CK Hutchison has initiated international arbitration seeking at least $2 billion against Panama. Mulino reiterated that the number of Panamanian ship detentions in Chinese ports multiplied following this dispute. Panama had previously indicated, after a meeting between its foreign minister and Chinese counterpart, that it hoped to renew a maritime transport agreement with China, which could ease tensions by offering preferential port fees and streamlined procedures.