CK Hutchison Starts Arbitration Against Maersk Over Panama Ports — Update

By Megan Cheah

Hong Kong conglomerate CK Hutchison has started arbitration against A.P. Moeller-Maersk after Panama seized its port assets in the country.

The move escalates a dispute that began in January, when a Panamanian court voided CK Hutchison's contracts to run two terminals at either end of the Panama Canal. The company, founded by Hong Kong billionaire Li Ka-shing, has also filed claims against the Panamanian government.

In a statement Tuesday, Hutchison unit Panama Ports Co. said it had filed the arbitration against Maersk, accusing it of undermining a long-term contract.

The unit said Maersk is "aligned with the Republic of Panama" in a campaign against it and a plan to replace it "through a takeover that installed new port operators."

Maersk confirmed the legal proceedings in an emailed statement. "Maersk does not believe it is liable for the claims and will address them in the appropriate forum; we have no further comment at this time," the shipping giant said.

The arbitration is separate from Hutchison's case against Panama and will be heard in London.

Hutchison has been in dispute over the concessions since Panama's Supreme Court ruled its port operations unconstitutional.

Set against rising China-U.S. tensions, the ruling was seen as a win for the Trump administration's efforts to curb China's influence in the Western Hemisphere.

China's office of Hong Kong affairs said that the Supreme Court ruling was "unfounded, unreasonable and absurd," noting that Hutchison's contract had been in force for nearly 30 years.

In a recent earnings report, Hutchison said the issue has complicated talks over a potential sale of stakes in certain port assets.

The company had planned to sell the two contested ports as part of a $23 billion deal to a group that includes BlackRock.

Analysts say the financial impact is limited, noting the ports contribute little to earnings.

Fitch Ratings said the Panama dispute adds uncertainty but expects Hutchison to stay resilient. S&P Global Ratings echoed that view, adding that the Middle East war has affected less than 0.5% of the group's total throughput.

News on the Panama dispute and war-driven shipping disruptions has spurred volatility in Hutchison's shares in recent months, though the stock has held up this year.

Shares closed 3.9% higher in Hong Kong on Wednesday, taking year-to-date gains to around 19%.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

April 08, 2026 05:49 ET (09:49 GMT)