Cosco Shipping has suspended its use of the Port of Balboa, halting all arrivals and departures at the terminal. The decision was communicated to clients in a notice issued on March 10. Cosco also clarified that it is not considering withdrawing from Panama. The suspension of services at Balboa is an operational decision and does not signal an exit from the country, according to the Chinese shipping giant.
Major Changes in the Panamanian Port System
This move comes amid recent changes in the Panamanian port system. End January, Panama’s Supreme Court of Justice declared the concession contract signed between the Panamanian State and Panama Ports Company S.A. (PPC), part of Hong Kong based CK Hutchison, unconstitutional. As a result, end of February, the administration of the Port of Balboa was transferred to APM Terminals Panama, a subsidiary of the Danish group A.P. Moller – Maersk, while the Port of Cristobal came under the management of Terminal Investment Limited (TiL), a company part of shipping company MSC.
Cosco also instructed that empty containers be returned to SSA Marine MIT and Colon Container Terminal S.A. (CCT), both located in Colón.
Representatives of the maritime and logistics sector in Panama are closely monitoring the movements of shipping lines and terminals, awaiting greater clarity on the scope of Cosco’s decision and its potential effects on the operation of the Panamanian port hub.