Danish shipping titan to temporarily take control of Panama Canal ports Beijing, Washington in standoff over crucial waterway

Panama Canal authorities have confirmed that Danish shipping giant Maersk will temporarily operate two major ports at either end of the Panama Canal after the country’s Supreme Court ruled that long-standing contracts awarded to a Hong Kong-based company were unconstitutional.

The Panama Maritime Authority (AMP) announced the decision on January 30, one day after the court invalidated port concessions held by CK Hutchison, a Hong Kong-based conglomerate, according to European media reports.

The ruling came amid heightened geopolitical tensions, following repeated claims by US President Donald Trump that China was exerting control over the strategically vital waterway.

In its decision, the Supreme Court said CK Hutchison’s contract to operate the ports showed a “disproportionate bias” in favour of the company, rendering the agreement unconstitutional. As a result, the AMP said APM Terminals — a subsidiary of the Maersk Group — would assume the role of “temporary administrator” of the Balboa and Cristobal ports, located at the Pacific and Atlantic entrances of the canal.

Maersk replaces the Panama Ports Company (PPC), a CK Hutchison subsidiary that has managed the ports since 1997 under a concession that was renewed in 2021 for an additional 25 years.

The Panama Canal, which handles about 40 percent of US container shipping and roughly 5 percent of global trade, has been under Panamanian control since 1999. The United States, which built the canal between 1904 and 1914, formally transferred authority to Panama at the end of the 20th century.

Washington welcomed the court’s decision, while Beijing reacted sharply. Chinese Foreign Ministry spokesman Guo Jiakun said China “will take all measures necessary to firmly protect the legitimate and lawful rights and interests of Chinese companies.”

Panamanian officials have consistently denied that China controls the canal, noting that the waterway is primarily used by vessels from the United States and China.

The ruling follows a series of statements by Trump shortly after his second inauguration in January 2025, when he called for the United States to “take back” the canal. “China is operating the Panama Canal. And we didn’t give it to China. We gave it to Panama, and we’re taking it back,” he said at the time. Trump also accused Panama of “severely” overcharging US ships and suggested Washington could reclaim control of the infrastructure.

Panamanian President José Raúl Mulino immediately rejected those claims at the time, stating that “the canal is and will remain Panama’s.” Several Latin American countries publicly expressed support for Panama following Trump’s remarks.

According to an analysis by Spain’s El País, Trump’s comments triggered concern across Central America, as they were seen as more than rhetorical bluster. The newspaper argued they marked the first visible sign of a policy shift that could place the region once again under direct US scrutiny.

“Central America is viewed by the United States as a strategic obligation that must remain within its sphere of influence,” said Carlos Murillo, a professor of international relations at the National University of Costa Rica. He described what he called a renewed “Trump Doctrine,” rooted in economic and political pressure. “Central American countries have no room to manoeuvre if they receive threats of tariffs or even military intervention, as happened in the past with Panama,” Murillo said.

Ángel Martínez, a geopolitical analyst at Swansea University in Wales, said Trump views regaining control of the canal as a symbolic and strategic win. “It kills several birds with one stone: it reaffirms geopolitical power, connects with a nationalist narrative that mobilizes his supporters, and reinforces the idea that the United States will not tolerate Chinese expansion in its immediate vicinity,” the Spanish article cites him.

By Nazrin Sadigova