CK Hutchison Unit Initiates Arbitration Against Maersk Over Panama Port Dispute

Hong Kong-based CK Hutchison's Panama unit has launched arbitration proceedings against Maersk. The move stems from Maersk's alleged breach of contract following the takeover of two strategic ports near the Panama Canal.

Panama Ports Company (PPC) stated that Maersk sided with the Panamanian government to remove PPC from operations at the Balboa port, replacing it with a Maersk-affiliated operator. PPC claims Maersk undermined their agreement as part of a state-led campaign.

Panama's Supreme Court invalidated the legal framework for the 1997 concession granting PPC operational rights to the Balboa and Cristobal terminals. Subsequently, the government awarded temporary contracts to subsidiaries of Maersk and Mediterranean Shipping Company (MSC) for these ports.

This dispute complicates CK Hutchison's planned $23 billion sale of a majority stake in its global ports business to a consortium including BlackRock and MSC. The court's ruling followed pressure from the Trump administration to curb Chinese influence over the vital waterway.

PPC confirmed the arbitration will take place in London. The claim against Maersk is separate from PPC's ongoing efforts to hold Panama accountable for its conduct.