February 24, 2026 – Panama has formally canceled port contracts held by CK Hutchison. The move shifts control of two key canal terminals to European shipping giants. It also marks a decisive moment in the US-China rivalry over global trade.
What Happened
Panama’s Supreme Court ruled in late January that PPC’s concessions were unconstitutional. On February 23, the ruling was published in the official gazette. That publication made it legally final and binding.
The Panama Maritime Authority (AMP) immediately took possession of both terminals. This included all cranes, vehicles, computer systems, and software. Panama’s goal: ensure uninterrupted port operations during the transition.
CK Hutchison’s subsidiary, Panama Ports Company (PPC), had operated both ports since 1997, nearly three decades. The two terminals handle close to 4 million TEU annually. That’s over a third of all containers moved through Panama.
Under new temporary licenses lasting up to 18 months, APM Terminals (Maersk) will run the Pacific-side Balboa port. TIL Panama, an MSC subsidiary, takes over Cristobal on the Atlantic side.
Why It Matters
The Panama Canal carries roughly 5% of global maritime trade. It handles about 40% of all US container traffic. Control of its gateway ports is not a minor issue.
The court ruling is widely seen as a win for Washington. President Trump has long pushed to limit Chinese influence over the canal. Beijing, meanwhile, warned Panama it would “pay a heavy price” for the decision.
CK Hutchison Pushes Back
CK Hutchison called the takeover “unlawful.” The company says Panamanian authorities physically entered the ports and threatened employees with criminal prosecution.
The Hong Kong conglomerate has launched arbitration at the International Chamber of Commerce. It is also pursuing an investment-protection treaty dispute against Panama.
The move also clouds CK Hutchison’s proposed $23 billion global port sale which includes the Panamanian terminals.
What’s Next
Panama President José Raúl Mulino insists this is not an expropriation. He says a new long-term concession framework will be tendered once the transition period ends.
But legal battles loom. And the geopolitical fault lines are only deepening.
