Denmark-based shipping group Maersk will temporarily assume operations at two ports at opposite entrances of the Panama Canal after Panama's Supreme Court ruled that existing port concessions were unconstitutional. The decision affects the Balboa and Cristobal ports and takes effect immediately.
The Panama Maritime Authority (AMP) said APM Terminals, a unit of Maersk, has been appointed as the temporary administrator of the two terminals, located on the Pacific and Atlantic sides of the Panama Canal. The court ruling voided concession contracts held by Hong Kong-based CK Hutchison Holdings, which has managed the ports through its subsidiary Panama Ports Company since 1997.
According to Panama Canal authorities, the canal handles about 5 per cent of global trade volumes and roughly 40 per cent of United States container traffic. The AMP said the interim management arrangement is intended to maintain operational continuity while Panama prepares a new competitive tender for long-term port concessions.
No immediate changes to tariffs, vessel schedules, or berth allocations were announced. Market participants said terminal users are monitoring whether the transition could affect productivity, labour arrangements, or near-term investment decisions. The Balboa and Cristobal ports handle containerised cargo and limited volumes of breakbulk shipments.
The Supreme Court found that the concession agreements showed "disproportionate bias" in favour of the previous operator. The ruling also reopens a 25-year concession renewal approved in 2021, adding uncertainty for shipping lines and logistics providers planning longer-term port usage.
The AMP said the appointment of APM Terminals is temporary and focused on safeguarding port operations. Former Panama Canal administrator Alberto Alemán has been named to oversee the transition process.
Panama Ports Company said the ruling lacks legal basis and warned it could affect thousands of Panamanian workers dependent on port activity. International responses have been mixed. Washington welcomed the decision, while China's Foreign Ministry rejected it. Spokesman Guo Jiakun said Beijing would take all necessary measures to protect the lawful rights of Chinese companies.
The shift comes amid broader scrutiny of shipping activity in the region, including U.S. pressure on Panama to tighten controls related to sanctions enforcement. Panama continues to maintain the canal's neutral status under international law and has resisted linking canal operations to external policy enforcement.
For shipping lines, exporters, and importers, the immediate focus remains on uninterrupted operations at Balboa and Cristobal. The rebidding of the concessions raises questions about future port governance at one of the world's main maritime transit points, at a time when geopolitical considerations increasingly intersect with port access and terminal control.
Source: BBN
