COSCO Shipping has suspended its container services at Panama's Balboa port, in what appears to be Beijing's first retaliatory measure following the forced takeover of CK Hutchison's terminal assets.
The suspension was first reported by Panamanian newspaper La Prensa, citing a customer notice issued by Cosco Shipping Lines (Panama) on March 10. Lloyd's List has since obtained a separate internal directive circulated to freight forwarders in China that provides further operational details.
The customer notice stated that CSL and its sister company Orient Overseas Container Line would immediately cease all arrivals and departures at the Pacific-side terminal.
"Confirmed bookings will be cancelled," the notice said, advising customers to contact sales representatives for alternative arrangements. Empty containers will no longer be accepted at Balboa and must be returned to Manzanillo International Terminal or Colon Container Terminal instead.
Balboa sits at the Pacific entrance of the Panama Canal, while both alternative terminals — MIT and CCT — are located on the Atlantic side near the Caribbean entrance. The shift will require operational adjustments for shippers accustomed to Pacific-side loading and discharge.
MIT is operated by US-based SSA Marine, while CCT is run by Taiwan's Evergreen — Cosco's partner in the Ocean Alliance.
The separate directive seen by Lloyd's List, marked as an "urgent notification from headquarters", ordered receivers to stop accepting all cargo destined for Balboa, including transhipment volumes.
Local cargo bound for Balboa or transiting through to the Colon Free Zone and Panama City is being rerouted to MIT. Cargo originally transhipping via Balboa to Central American destinations including Puerto Caldera, Corinto and San Lorenzo will now be diverted toLazaro Cardenas in Mexico.
Containers already in transit will await further instructions, while shippers with bookings not yet loaded have been told to either accept the revised arrangements or cancel.
Cosco did not provide a reason for the suspension, and the company has been approached for comment.
The timing, however, is notable. The move comes just one day after China's Ministry of Transport and the National Development and Reform Commission, the country’s top economic planner, both summoned representatives from Maersk and Mediterranean Shipping Co to discuss "international shipping business conduct".
Industry sources said the meetings was linked to the two carriers' role in taking over operations at Balboa and Cristobal after Hutchison's Panama Ports Co was forcibly removed.
APM Terminals, the port arm of Maersk, and MSC’s Terminal Investment Ltd assumed control of the two facilities, respectively, in late February under an 18-month temporary arrangement following a Panamanian Supreme Court ruling that voided Hutchison's longstanding concessions.
Beijing has warned Panama of political and economic consequences if the decision is not reversed, and Panama Ports Co has filed for international arbitration seeking at least $2bn in damages.
Whether Cosco's decision is directly connected to the broader dispute remains unclear, but the suspension removes a major carrier client from the terminal now operated by APM Terminals.
Cosco is the world's fourth-largest container line and a key player in transpacific trade routes, where Panama Canal transit plays a critical role in connecting Asia to the east coast of the Americas.
The development also raises questions about the fate of MSC and BlackRock's proposed $23bn acquisition of Hutchison's global port portfolio, in which Cosco has been reported as a potential consortium partner.
