China detains Panama-flagged ships amid port-control dispute
Panama-flagged ship operators must avoid Chinese calls or face detention
Change
China has detained nearly 70 Panama-flagged vessels since March 8 under informal directives, holding them at Chinese ports.
Why it matters
Panama-flagged vessels are now subject to intensified inspections and detention in China, creating direct exposure for operators carrying US containerised trade. The US Federal Maritime Commission (FMC) is empowered to investigate foreign-government practices that harm US trade and is closely monitoring the detentions.
Implications
- — Voyage-planning and vessel-operations teams at shipping companies operating Panama-flagged vessels must suspend scheduled calls to Chinese ports immediately — arriving Panama-flagged ships are being detained and face operational holds.
- — Charterers and cargo-planning teams contracting shipments to China must not nominate Panama-flagged tonnage for China voyages now — nominated Panama-flagged ships risk detention and cargo disruption.
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Source
View on The Straits Times