State-backed port operator, shipping giant, part of China COSCO Shipping
Panama has invalidated a long-running port concession, prompting China to detain Panama-flagged ships in retaliation. The move follows a January court ruling and broad geopolitical pressure as the United States and allies defend Panama’s sovereignty amid a broader contest for shipping lanes. Leaders are signalling restraint, but the standoff risks widening trade frictions.
Vessels are returning to the Strait of Hormuz as major ships transit via northern and southern routes while central path remains blocked by mines. Authorities warn full normal traffic will take weeks to months to return; tolls are contested under international law.