
Panama’s ships caught between the rock and a hard place.
While the Russia-Ukraine war brings danger to the Black Sea, the military conflicts in the Middle East brought about Iran’s effective closure of the Strait of Hormuz.
But we’d do well not to forget about the vital Panama Canal and the geopolitical consequences of Donald J. Trump’s administration shutting China out of its infrastructure.
Last Thursday, US Secretary of State Marco Rubio called out China’s ‘bullying’ for ‘detaining or holding up dozens of Panama-flagged ships’.
Even though the ships were held for a short period of time, it comes as a retaliation after Panama seized control of two ports on the Panama Canal from a Hong Kong-based company.
China denies the bullying allegations.
The US accused China of harassing and detaining Panama-flagged ships after the Central American nation struck down contracts with a Hong Kong conglomerate operating ports on both sides of the Panama Canal. https://t.co/p2NNvtPmRC
— Bloomberg (@business) April 2, 2026
Associated Press reported:
“Panama has been caught in a broader rivalry between the United States and China after U.S. President Donald Trump accused Beijing last year of running the Panama Canal. The Trump administration sees the critical maritime trade route as strategically important, both commercially and militarily, and Trump has talked about retaking the Panama Canal since his campaign.
‘China’s decision to detain or otherwise impede Panama-flagged vessels engaged in lawful trade destabilizes supply chains, raises costs, and erodes confidence in the global trading system’, Rubio said on social media. ‘The United States stands with Panama against any retaliatory actions against its sovereignty and will always support our partners in the face of bullying’.”
China’s decision to detain or otherwise impede Panama-flagged vessels engaged in lawful trade destabilizes supply chains, raises costs, and erodes confidence in the global trading system. The United States stands with Panama against any retaliatory actions against its sovereignty…
— Secretary Marco Rubio (@SecRubio) April 2, 2026
No less than 75% of the ships detained for inspection in Chinese ports in March – 92 vessels – were Panama-flagged.
“The Panama-flagged ships were typically detained for a few days — as short as one day or as long as 10 days — before being released.
That is up drastically from the previous two months, when 19 out of 45 ships — or more than 40% — held in February were Panama-flagged, and 23 out of 71 — or over 30% — in January hung the Panama flag.”
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