Statement of Chairman DiBella on China’s Continuing Detentions of Panama-Flagged Vessels

I reiterate the concerns I expressed in March about China's weaponization of port state control inspections against vessels flagged in Panama. These retaliatory inspections, far exceeding historical norms, have continued with no sign of abatement. They appear intended to punish Panama for a decision Panama's independent Supreme Court made to invalidate the concession Hong Kong-based CK Hutchison formerly held to operate the Balboa and Cristóbal terminals on the Pacific and Atlantic sides of the Panama Canal.

Panama-flagged ships carry a meaningful share of U.S. trade, and unwarranted, retaliatory vessel detentions could result in significant commercial and strategic consequences to U.S. shipping. Moreover, the world cannot simply normalize these ongoing detentions - this would create a highly negative precedent for the global supply chain, and preventing that from happening is a priority.

With that in mind, I again note that laws the Commission administers empower it to investigate whether regulations or practices of foreign governments result in conditions unfavorable to shipping in the foreign trade of the United States. An investigation of the conduct taking place in Chinese ports could result in the implementation of remedial measures, including measures affecting Chinese-controlled carriers operating in U.S. trade.

Laura DiBella is a Commissioner with the U.S. Federal Maritime Commission. The thoughts and comments expressed herein are her own and do not necessarily represent the position of the Commission.