US regulator warns on China's detention of Panama-flagged ships
FMC signals possible action against Chinese-controlled carriers in US trades
A US maritime regulator has stepped up its warnings over China's detention of Panama-flagged ships, floating the possibility of action against Chinese-controlled carriers operating in US trades.
Laura DiBella, a commissioner with the Federal Maritime Commission, said Chinese port state control inspections of Panama-flagged vessels had continued with no sign of easing. She characterised the detentions as retaliatory, tied to Panama's Supreme Court decision striking down the concession held by Hong Kong-based CK Hutchison for the Balboa and Cristóbal terminals at either end of the Panama Canal.
The commission has authority to investigate whether foreign government practices create unfavourable conditions for US foreign trade. DiBella said an inquiry into Chinese port conduct could lead to remedial steps, including measures affecting Chinese-controlled carriers in US trades. The comments follow an earlier statement in March, when she said the agency was monitoring Beijing's actions after a sharp rise in detentions.
Panama-flagged detentions in Chinese ports climbed to 136 ships in April, following a March spike in which Panama-flagged vessels accounted for around three-quarters of all detentions at Chinese ports, a steep jump from the opening months of the year. China has denied singling out Panama-flagged ships and accused Washington of exploiting the canal dispute to pressure Beijing.
Panama has appointed APM Terminals and MSC's Terminal Investment Limited as interim operators. While there has been no mass reflagging so far, Chinese leasing companies are now requiring shipowners to move away from the Panama flag as a condition of newbuilding finance, with Liberia and the Marshall Islands the main beneficiaries.
