Panama seized a North Korean vessel transporting hidden missile components from Cuba through the Canal, detaining its 35-member crew and disrupting suspected illicit weapons trafficking between internationally sanctioned nations.
The US and China clash over Panama Canal influence, with Washington accusing Beijing of detaining Panama-flagged ships to politicize maritime trade, while analysts warn disruptions could significantly impact global commerce and GDP growth.
Panama's President Mulino reported reduced Chinese vessel detentions after tensions escalated following Panama's January Supreme Court decision to reclaim canal port control from a Hong Kong firm, signaling diplomatic thaw in this strategic trade route dispute.
Panama's president defended his country's takeover of a strategic port from Chinese-controlled CK Hutchison, caught between US-China tensions over the critical Panama Canal, which handles five percent of global maritime trade.