Cosco suspends operations at Panama Canal amid US-China tensions

Chinese shipping giant Cosco announced on Tuesday that it is suspending operations at a Panama Canal port amid an ongoing dispute between the United States and China over the management of the waterway.

Cosco, which operates one of the world's largest tanker fleets, is halting activities at the Pacific Ocean port of Balboa, which Panamanian authorities reclaimed on February 23. Panama also regained control of the Atlantic port of Cristobal after a court annulled a contract that had allowed a subsidiary of Hong Kong-based CK Hutchison Holdings to operate both terminals since 1997.

Last year, 38 percent of the containers passing through the Panama Canal were handled by these two ports. Following the court ruling, China reportedly threatened Panama with retaliation.

In a memo published by Panamanian daily La Prensa, Cosco stated that it would no longer schedule departures or arrivals at the port of Balboa and advised companies to take necessary measures to avoid logistical delays.

AFP could not independently verify the suspension immediately.

The dispute comes amid broader tensions between Washington and Beijing, with former US President Donald Trump last year claiming, without evidence, that China effectively controls the canal. Panama has consistently denied Chinese control over the 80-kilometer waterway, which serves both the United States and China.