The Panamanian government has ordered the occupation of two critical ports at the Panama Canal entrances following a Supreme Court ruling that declared Hong Kong-based CK Hutchison's operating concession unconstitutional. The decree authorizes the Panama Maritime Authority to take control of the Balboa and Cristóbal terminals, including all equipment and systems.

This move comes amid heightened tensions between the United States and China, with President Trump last year accusing China of controlling the canal. CK Hutchison had been negotiating to sell the ports to a consortium including BlackRock, but the Chinese government intervened to halt the deal. The Supreme Court's January ruling invalidated the 1997 concession and its 2021 extension, leaving the ports without legal basis for operation.

APM Terminals, a subsidiary of Danish shipping giant A.P. Moller-Maersk, will temporarily administer the facilities while Panama seeks a new operator. CK Hutchison has initiated arbitration proceedings against Panama under International Chamber of Commerce rules and threatened legal action against APM Terminals if it operates the concession. The company stated it's seeking an agreement with Panama to continue operations, though the government has promised job stability and operational continuity during the transition.