The Panamanian government has ordered the Panama Maritime Authority to occupy of the two disputed ports at either entrance of the Panama Canal, in response to a recent Supreme Court ruling that deemed the operation concession held by Hong Kong-based CK Hutchison unconstitutional.

According to the Associated Press, the decree issued on February 23 orders the Panama Maritime Authority to occupy the ports for "reasons of urgent social interest," and includes all cranes, vehicles, computer systems and software within the hubs. The move effectively places the Balboa and Cristobal terminals under temporary state control, escalating tensions with CK Hutchison and raising fresh uncertainty over who will ultimately operate the ports moving forward.

Panama had initially announced that AP Moller-Maersk's APM Terminals unit would temporarily assume administrative control of the terminals until a new contract could be awarded. CK Hutchison then threatened legal action against the Danish shipping company, claiming that any forced takeover could potentially disrupt trade through the region, despite claims from Panama's government that the ports' operations wouldn't be interrupted as the dispute played out.

Panama's Supreme Court invalidated CK Hutchison's concession contract in a July 2025 ruling, stating at the time that the original agreement failed to meet constitutional requirements around transparency and competitive bidding. The court’s decision effectively stripped the Hong Kong-based operator of its legal standing at the ports, setting off months of political maneuvering that has now culminated in the government’s direct intervention.