Panama.- The detentions of Panamanian-flagged vessels in Chinese ports dropped to 16 so far in July, the Government of Panama reported this Thursday, citing data from the Tokyo Memorandum of Understanding, a regional port state control organization, and attributed the downward trend to “conversations” held with Beijing.
In May, Panama had 140 vessels detained, following the cancellation of a concession to a Chinese operator of two ports near the Panama Canal, after which the increase in detentions of vessels from the Panamanian merchant navy, one of the largest in the world, began to occur.
“Conversations between authorities of the Governments of Panama and China have yielded their first results, achieving a significant decrease in detentions due to the control of Panamanian-flagged ships in Chinese ports,” the Panamanian Government noted in a statement.
We recommend reading:Uruguay renews its Air Force: why it chose the Super Tucano to replace its historic aircraft
The origin of the tension
The data in the Memorandum “reflects only 10% of inspections with detention for the current month (July), in relation to an escalation that began in March with 21%; followed by April, 35%; May, 37%; and June, 25%, at mainland China ports,” said the Panamanian Executive.
More Read
The increase in Panamanian ships detained in China occurred after the departure last February of the Chinese operator CK Hutchison from two ports near the Panama Canal because the concession was annulled as unconstitutional by the Panamanian Supreme Court.
One of the main consequences of the vessel detentions was the departure of more than 200 ships from Panama’s merchant marine, one of the largest in the world, as well as the public clash between authorities of both countries.
In this context, officials from the Panama Maritime Authority traveled to China last week to hold meetings with their counterparts in which they agreed to renew a maritime transport agreement signed in 2017, months after the establishment of diplomatic relations between Panama and China, to the detriment of Taiwan.
More Read
Among the benefits of the agreement, which is set to expire this year following its previous renewal in 2021, it grants Panama-flagged vessels ‘Most Favored Nation’ status in Chinese ports with preferential port fees and more streamlined procedures.
