A subsidiary of Hong Kong conglomerate CK Hutchison filed arbitration against Danish shipping giant Maersk, accusing the company of breaking contracts by supporting Panamanian authorities in seizing control of key ports.
Panama Ports Company claims Maersk aligned with Panama's government to undermine their contract and facilitate a takeover that installed new port operators. The dispute centers on rights to manage two crucial Panama Canal terminals.
London-based arbitration follows Panama's January decision to cancel PPC's management rights. Since then, Maersk-affiliated operators have utilized PPC's facilities under new concession agreements.
Panama awarded Balboa terminal to Maersk subsidiary APM Terminals and Cristobal port to MSC's Terminal Investment Limited. PPC seeks at least $2 billion in damages.
The Panama Canal handles 40% of US container traffic and 5% of global trade, making the dispute strategically significant amid US-China tensions.