U.S. Accuses China of Detaining Panama-Flagged Ships Amid Port Control Dispute

• •China detained 92 Panama-flagged vessels in March 2026, raising U.S. concerns.
• •The detentions follow Panama's Supreme Court ruling against a Hong Kong company's port concessions.
• •U.S. Secretary of State Rubio claims these actions threaten global trade and Panama's sovereignty.

U.S. Secretary of State Marco Rubio has accused China of 'bullying' Panama by detaining a significant number of Panama-flagged vessels following Panama's Supreme Court ruling that invalidated a concession held by a Hong Kong company over two critical ports in the Panama Canal. In March 2026, 92 out of 124 ships detained in Chinese ports were Panama-flagged, a sharp increase from previous months. Rubio stated that these actions undermine global supply chains and threaten the sovereignty of Panama. The detentions are seen as a retaliatory measure by China after Panama's decision to reclaim control of the ports. China has denied these allegations, asserting that the detentions are standard inspections. The situation reflects ongoing tensions between the U.S. and China over influence in Latin America. Israel has also expressed support for Panama, emphasizing the need for fair maritime enforcement. The U.S. Federal Maritime Commission is monitoring the situation closely.