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China demands Cosco involvement in Panama ports: China has threatened to obstruct the Panama ports agreement if its state-owned shipping firm Cosco Shipping does not receive an undetermined stake, Reuters reported on Thursday, citing a Wall Street Journal report. All concerned firms — Hong Kong-based CK Hutchinson, Blackrock, and Mediterranean Shipping Company — are on board with Cosco taking a stake.
What’s the problem? The involved firms will not have enough time to reach a final decision on Cosco’s stake before the 27 July negotiations deadline. The sale follows heavy US pressure on Panama to push out CK Hutchinson, with the US striving to control the canal after alleging that Panama is enabling Chinese interference in the area.
Not China’s first overrule: Its top antitrust watchdog, the State Administration for Market Regulation, previously blocked CK Hutchison from selling its two ports in the Panama Canal in April.
Chinese shipbuilding orders declined 68% y-o-y to 26 mn deadweight tonnage (dwt) in 1H 2025, following anticipated US Trade Representative (USTR) fees on Chinese-built ships stopping in US ports, Splash reported on Thursday, citing data from shipping solutions agency Clarksons. The nation’s shipbuilding contracts also dipped from 72% to 52% during the same period, while China’s share of global orders rose from 56% to 75%.
Disappointed, not surprised: The levies imposed on China-built vessels — including an expected USD 1-3 mn surcharge for shipments on certain transatlantic trips — are likely to shift the market share away from China to markets with production capacity, such as South Korea and Japan.
As for its Asian rival: South Korea's share of global new orders climbed from 14% to 30%, while orders at South Korea’s yard slightly dipped 7% y-o-y to 14.2 mn dwt in the same period. These numbers parallel previous forecasts that projected South Korean and Japanese shipbuilders as the biggest beneficiaries of the US’ crackdown on China’s shipbuilding industry.
Targeting China: The USTR will impose fees on Chinese-built vessels calling at US ports, calculated based on net tonnage or containers loaded. These fees are effective 14 October, starting at USD 50 per ton for Chinese-owned and operated ships and increasing by USD 30 per year over the next three years — capping at USD 140 by 2028.
