Panama flag exodus accelerates as Washington threatens probe into Beijing’s crackdowns
- FMC chairperson warns of possible investigation into China’s ‘weaponisation’ of port state control, risking significantly wider shipping disputes
- In June, 264 vessels left the Panama registry, up 47% from 180 in May, accelerating the exodus first seen in April
- Chinese owners were the largest known group to reflag, while the Bahamas and Marshall Islands combined accounted for over 50% of the destinations
- The mass departure accelerated despite a 54% monthly drop in Chinese detentions ahead of in-person maritime talks between Beijing and Panama
The exodus, unseen in nearly two decades, is still gathering pace even as China halves detentions of Panama-flagged ships, while Washington’s threat of a probe risks broader US-China shipping tensions
