CK Hutchison Holdings Ltd. has initiated arbitration in London against A.P. Moller-Maersk A/S following Panama’s forced takeover of its two ports, intensifying a high-stakes dispute over strategic assets along the Panama Canal. The arbitration, filed by CK Hutchison’s local unit Panama Ports Co., is separate from the company’s more than $2 billion damages claim against the Panamanian government, according to a statement released Wednesday.
The dispute centers on the Balboa and Cristobal ports, which have become a flashpoint in the broader US-China rivalry. Beijing has warned of a “heavy price” after Panama annulled CK Hutchison’s contract and has instructed state-owned firms to halt talks on new projects in the country. The legal action against Maersk, whose APM Terminals unit was appointed as interim operator of one contested port, signals CK Hutchison’s effort to assert its control while navigating mounting geopolitical tensions.
CK Hutchison, founded by Hong Kong billionaire Li Ka-shing, had sought to sell 43 global terminals to a consortium backed by BlackRock Inc. for over $19 billion. Beijing initially opposed the sale, viewing it as a concession to US pressure, prompting the inclusion of state-owned China Cosco Shipping Corp. into the consortium alongside MSC Mediterranean Shipping Co. Despite these maneuvers, Panama’s government moved to seize the ports, leading to operational disruptions and a suspension of Cosco services at Balboa.
The situation has drawn international attention, with Bloomberg reporting that the US accused China of harassing and detaining Panama-flagged ships, allegations Beijing has denied. Analysts say the outcome of CK Hutchison’s arbitration and the broader ports dispute could hinge on high-level diplomatic developments, including a potential meeting between President Donald Trump and China’s leader Xi Jinping, while ongoing tensions in the Middle East further cloud the geopolitical and commercial outlook.
