Mumbai, Apr 08 ; A subsidiary of Hong Kong-based conglomerate CK Hutchison has launched arbitration proceedings against Danish shipping giant Maersk, escalating a high stakes dispute over control of strategic port operations along the Panama Canal.
The Panama Ports Company alleged that Maersk breached contractual obligations tied to its long-standing management of terminals at both ends of the canal. According to the company, the Danish firm enabled a transition that allowed a Maersk-linked operator to assume control of the Balboa port facility.
The arbitration case will be heard in London, though the claimant has not publicly detailed the relief or compensation it is seeking.
The move comes months after Panama’s government took control of the Balboa and Cristobal ports in February, following a Supreme Court ruling that invalidated the original concession agreement. The decision triggered strong reactions from China, given CK Hutchison’s Hong Kong base.
Soon after the ruling, Panamanian authorities permitted Maersk and Mediterranean Shipping Company to operate the seized terminals, marking a significant shift in control of the key maritime hubs.
Separately, the Panama Ports Company had already initiated arbitration against the Panamanian government earlier this year, later expanding its claims to more than $2 billion in damages. The company emphasized that its latest legal action against Maersk is distinct from its ongoing case against the state.
Neither Maersk nor Panama’s government has issued an official response to the fresh arbitration proceedings.
The dispute adds complexity to CK Hutchison’s broader plan to divest a majority stake in its global port business, including the Panama assets, under a $23 billion deal with a consortium led by U.S. based BlackRock.
The proposed transaction, announced in 2025, has drawn geopolitical attention, with former U.S. President Donald Trump supporting the move amid concerns about Chinese influence over the critical shipping route. However, Beijing has reportedly opposed the deal, prompting a regulatory review by China’s antitrust authority.
Amid rising tensions and legal hurdles, stakeholders are now exploring alternative structures for the sale, including the possible inclusion of Chinese investors.