CK Hutchison starts London arbitration against Maersk over Panama
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Panama annulled CK Hutchison’s contract to operate two ports under pressure from US President Donald Trump.
PHOTO: REUTERS
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HONG KONG – CK Hutchison Holdings has begun arbitration against A.P. Moller-Maersk after Panama’s forced takeover of its two ports in the country, intensifying a legal battle over control of the assets.
The arbitration, filed by CK Hutchison’s local unit Panama Ports, will be heard in London and is separate from its more than US$2 billion (S$2.6 billion) damages claim against the Panamanian government, the company said in a statement on April 8.
CK Hutchison, founded by Hong Kong billionaire Li Ka-shing, did not specify its claims against Maersk, whose unit APM Terminals was appointed by Panama as interim operator of one of the contested ports.
The move escalates the dispute over the Balboa and Cristobal ports along the strategic Panama Canal, which has become a proxy in the US-China rivalry. Beijing has warned of a “heavy price” after the Central American country annulled CK Hutchison’s contract under pressure from US President Donald Trump.
The ports are part of CK Hutchison’s broader bid to sell 43 global terminals to a consortium backed by US investment firm BlackRock for over US$19 billion in cash. The plan, announced in March 2025, angered Beijing, which viewed it as bowing to US pressure.
To gain China’s approval, CK Hutchison later invited state-owned China Cosco Shipping into the consortium, which includes Italian billionaire Gianluigi Aponte’s MSC Mediterranean Shipping.
After Panama’s takeover of the two ports, Beijing asked state firms to halt talks over new projects in the country and advised shipping companies to reroute cargo where feasible, Bloomberg reported in February.
Cosco has suspended services at Balboa, while the US accused China of harassing and seizing Panama-flagged ships – allegations Beijing has denied.
CK Hutchison’s deal is now in limbo, with stakeholders hoping for a political breakthrough, such as a potential meeting between Mr Trump and Chinese leader Xi Jinping in May to move talks forward. But uncertainty over the US war with Iran has further clouded the prospects. BLOOMBERG
