Chinese shipping giant COSCO Shipping has halted arrivals and departures at Balboa port, the Pacific entrance to the Panama Canal. The state-owned company from Shanghai issued the order in a client notice dated March 10. All confirmed bookings at the terminal now face cancellation. Clients must contact sales representatives for alternative arrangements.

The notice, published by Panamanian newspaper La Prensa, states that import releases will proceed normally. Shippers must return empty containers only to the Manzanillo International Terminal or the Colon Container Terminal, both in Colon province. Balboa will accept no empty containers.

COSCO did not specify a reason for the suspension or indicate whether it is temporary or permanent. The company also rerouted some transshipment activity to Buenaventura in Colombia.

The decision follows Panama’s takeover of Balboa and the Atlantic-side Cristobal port last month. Authorities acted after the Supreme Court annulled the operating concession held by Panama Ports Company, a subsidiary of Hong Kong-based CK Hutchison Holdings. The company had run both terminals since 1997.

Panama Maritime Authority officials assigned temporary 18-month contracts to new operators. APM Terminals, part of Denmark’s Maersk group, now manages Balboa. Terminal Investment Limited, linked to Mediterranean Shipping Company, handles Cristobal. The two ports processed nearly 10 million containers across Panama’s terminals last year. Balboa and Cristobal together accounted for 38 percent of that volume.

The takeover unfolded amid broader friction between Washington and Beijing over the canal. U.S. President Donald Trump has claimed without evidence that China exerts control over the 80-kilometer waterway. Panama has repeatedly rejected that assertion and denied any Chinese oversight.

China responded sharply to the court ruling. Officials warned Panama of a heavy price and promised all necessary measures to protect Chinese interests. On the same day COSCO issued its notice, China’s Ministry of Transport summoned executives from Maersk and Mediterranean Shipping Company to discuss their international maritime practices.

COSCO Shipping ranks among the world’s largest container operators and forms part of China’s dominant state-backed shipping sector. The suspension affects services that include its associated line OOCL.

Panama authorities reported no disruption to canal transits after the February takeover. Trade flows continued normally under the interim operators. The notice leaves open questions about longer-term effects. Industry observers note that shipping lines often share vessel space through alliances, which could soften immediate impacts on cargo routed through Balboa.

Panama plans to launch a full tender for permanent operators after the 18-month transition. CK Hutchison has filed for international arbitration and seeks more than $2 billion in damages over the concession cancellation. No immediate comment came from COSCO’s global headquarters or Panamanian officials on the suspension. Canal traffic volumes remain stable so far.

The development adds another layer to the geopolitical strains surrounding one of the world’s busiest trade routes. Shipping lines now adjust schedules while Panama moves to secure long-term management of the key terminals.