Maersk and MSC have been summoned by Beijing not to « engage in illegal activities that harm the interests of Chinese companies, » reports the Financial Times on Wednesday. Panama has granted them temporary concessions of 18 months.
China has ordered the Danish shipping group Maersk and the Swiss shipping company Mediterranean Shipping Company (MSC Shipping) to stop operating ports on the Panama Canal, the Financial Times reported on Wednesday, April 15.
At a meeting with the Chinese state planner last month, Maersk and MSC Shipping were ordered to immediately withdraw from the ports of Balboa and Cristóbal, according to the report, citing two people who are awre awar in the discussions.
Maersk and MSC have been ordered not to « engage in illegal activities that harm the interests of Chinese companies and to respect commercial ethics and international rules, » the report says. China had already assured in January that it would take « the necessary measures to resolutely preserve the interests » of its companies.
Temporary concessions of 18 months
As a reminder, at the end of January, the Supreme Court of Panama deemed « unconstitutional » the contract that had allowed Panama Ports Company (PPC), a subsidiary of CK Hutchison, to manage two ports located at both ends of the canal since 1997.
The following month, PPC had initiated arbitration proceedings under the rules of the International Chamber of Commerce (ICC). The company said it claimed at least $2 billion in damages.NEWSLETTER
To keep the terminals in operation, Panama has granted 18-month temporary concessions to APM Terminals, a unit of Maersk, managing Balboa, and TIL Panama, a unit of MSC, managing Cristobal.
Arbitration proceedings against Maersk
Last Tuesday, CK Hutchison subsidiary Panama Ports Company announced that it had initiated arbitration proceedings against Maersk, accusing the Danish shipowner of rallying with the Panamanian authorities to facilitate the suspension of its activities on the canal.
She said that Maersk had « violated » the contract that tied them and had « rallied to the Republic of Panama as part of a state campaign » against her.« This project aimed to oust our company in favor of new port operators, » said PPC.
The company said that this appeal against Maersk was independent of the « steps currently taken by the PPC to hold Panama accountable, regarding its behavior hostile to contracts and investors ».
5% of world shipping trade
In mid-March, PPC reported that Panama had not reacted to an arbitration procedure launched to challenge the recovery of the two ports on the canal.
Built by the United States and inaugurated in 1914, the canal came under Panamanian control in 1999. About 5% of world maritime trade passes through this 80-kilometer strategic route. US President Donald Trump repeatedly threatened last year to regain control of it, believing that he was under the influence of China. He also demanded from Panama preferential conditions for its use by American ships.
source : La Tribune
