【Cheung Kong Sells Ports】COSCO Shipping Group reportedly suspends operations at the Panama Balboa Port. Previously, Cheung Kong's Panama ports were forcibly taken over.

COSCO Shipping Group reportedly has suspended services at the port of Balboa in Panama. Beijing previously warned that forcibly taking over the port from Cheung Kong (00001) would come at a “heavy price.”

According to local media La Prensa, COSCO Shipping Group announced in a customer notice on March 10 that all inbound and outbound operations at the port have been suspended. It is reported that all confirmed orders will be canceled, but goods already arrived will be processed as usual.

Reports suggest that this move is unlikely to significantly impact the operation of the port of Balboa, as approximately 80% of the cargo handled there depends on Maersk.

Earlier reports indicated that China had asked shipping companies to switch to other ports at minimal cost to avoid using the disputed Panama port. Beijing also instructed state-owned enterprises to suspend negotiations on new projects in the area.

In January, the Panamanian Supreme Court ruled that the contracts for the operation of two ports by Cheung Kong were invalid, and last month, the government forcibly took over these ports. Currently, Panama has temporarily handed over the operation rights of the ports of Balboa and Cristóbal to APM Terminals, a subsidiary of Maersk, and MSC Mediterranean Shipping Co., owned by Italian billionaire Gianluigi Aponte.