Chinese Ship Company Cosco Suspends Operations Panama Canal

COSCO Shipping – (Web Desk) – A major Chinese shipping company, COSCO Shipping, announced on Tuesday that it will stop its operations at a key port on the Panama Canal. The decision comes as tensions continue between the United States and China over control and oversight of the important waterway.

COSCO, which operates one of the largest tanker fleets in the world, has decided to suspend activity at the Pacific side port of Port of Balboa. The port was taken back by the government of Panama on February 23.

Panama also regained control of the Atlantic side port, Port of Cristobal. A local court cancelled a long running contract that had allowed a unit of CK Hutchison Holdings, a company based in Hong Kong, to manage both ports since 1997.

These two ports are very important for trade. Last year, about 38 percent of all containers moving through the Panama Canal passed through them.

After the court’s decision, China warned Panama that the move could bring consequences.

In a notice shared with the Panamanian newspaper La Prensa, COSCO said its ships will no longer arrive at or leave from the Port of Balboa. The company also advised partners to plan ahead so their cargo and logistics do not face delays.

AFP was unable to independently confirm this change immediately.

The Central American country has been swept up in broader tensions between Washington and Beijing, with US President Donald Trump last year claiming, without providing evidence, that China effectively runs the canal.

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Panama has always denied Chinese control over the 80-kilometer (50-mile) waterway, which is used mainly by the United States and China.