Panama-Flagged Ships Dominate China Detentions in Sudden March Spike

By Gavin van Marle (The Loadstar) – The number of Panama-flagged ships detained by China’s Port State Control soared in March, compared with February and January, according to The Loadstar’s analysis of the Tokyo MOU detention list.

The Tokyo MOU, formally known as the Memorandum of Understanding on Port State Control in the Asia-Pacific Region, comprises 22 maritime authorities in the Asia-Pacific region, as well as 17 observers, and publishes the most complete dataset of detentions in the area.

In March there were 179 vessel detentions under the Tokyo MOU, with 123 taking place in Chinese ports.

However, the number of Panamanian ships detained by Chinese port state control was 91, compared with just 32 vessels flying other flags – which means that last month, more than half of all vessels detained in the Asia-Pacific region were Panamanian detained in China.

In addition, the 123 total is far higher than the number of ships detained in Chinese ports in any month last year, and far higher than the first two months of this year. There were 112 ship detentions in the Asia-Pacific region in February – 45 in China – while in January, there were 122, with 71 happening in China.

However, in both January and February the proportion of Panama-flagged vessels detained in China was far lower than March: 25 Panamanian ships detained, vs 46 of all other flags in January, which declined to 19 and 26 respectively in February.

Given that Port State Control detains vessels over safety issues, it could of course be a coincidence, how the correlation between the timing of Hutchison’s ejection from its concessions at the ports of Balboa and Cristobal and rising number of Panamanian ships detained in China is striking, and lends credence to claims from recently installed US Federal Maritime Commission chair Laura DiBella that China was weaponising Port State Control “to punish Panama”.

She said last week: “China has now imposed a surge in detentions of Panama?flagged vessels in Chinese ports under the guise of port state control, far exceeding historical norms. These intensified inspections were carried out under informal directives and appear intended to punish Panama after the transfer of Hutchison’s port assets.

“Given that Panama?flagged ships carry a meaningful share of US containerised trade, these actions could result in significant commercial and strategic consequences to US shipping,” she added.

However, it should also be noted that it was not just containerships that were detained by Chinese Port State Control in March; there were also numerous tankers and bulkers.

And neither was it restricted to foreign carriers – several Chinese carriers operating Panama-flagged ships were also subject to detention.

Meanwhile, in the daily press conference hosted by China’s Foreign Ministry in Beijing on Friday, the government spokesperson was asked to confirm whether it was specifically targeting Panamanian vessels in response to the Hutchison saga – but she dodged the question, replying: “China’s position on issues related to the Panama Canal ports is clear. The US’s repeated wrongful allegations only reveal its attempt to take control of the canal.

“For your specific question, I’d refer you to competent authorities.”

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