China escalates maritime pressure on Panama by detaining flag vessels

In the first half of 2026, Chinese authorities detained more than 400 ships flying the Panamanian flag, a rate that officials attribute to informal directives aimed at penalising Panama. By April, China was responsible for 91% of all Panama-flagged vessel detentions across the Asia-Pacific. The pressure caused roughly 500 vessels to abandon Panama’s registry, reducing the nation’s tonnage share.

The detentions follow Panama’s Supreme Court ruling that declared two Hong Kong-owned port concessions unconstitutional, a decision Beijing blamed on U.S. pressure. Chinese state firms also summoned European operators Maersk and MSC to withdraw from the disputed ports, while Chinese Premier Li Qiang signed a order expanding retaliation powers against foreign regulatory actions. The United States and several Latin American countries have issued statements supporting Panama’s sovereignty, but no concrete remedy has emerged.