Beijing has increased its inspections of Panamanian-flagged vessels entering Chinese ports, a shipping industry source said, a move intended to raise tensions in the South American country after its courts revoked Hong Kong company CK Hutchison’s operating rights in the Panama Canal.
“The strengthening of inspections on Panama-flagged ships is a step to increase pressure on the country during the ongoing port crisis.”
China’s Ministry of Foreign Affairs firmly promised to protect the legitimate rights and interests of its companies after the Panamanian Supreme Court annulled the port contract awarded to a subsidiary of CK Hutchison at the end of January.
In February, Panamanian authorities handed over temporary, separate control of the two ports to units of Danish shipping giant Maersk and Geneva-based MSC.
The speeding up of Beijing’s inspections could have a major impact on the industry. Due to its ease of adoption and its use in avoiding the strict maritime regulations of other countries, Panama is one of the most well-known ship registries in the world – second only to Liberia – and ship registration is an important part of the country’s economy.
