Panama Canal Ports Deal Is At Risk Due to Cosco's Demands

BlackRock-led acquisition of CK Hutchison global ports - including Panama Canal terminals - that was due to be acquired through BlackRock for $23 billion is in peril as China's Cosco demands majority stake ownership and tensions escalate between US interests and Cosco. Panama continues its fight against $1.2 billion corruption claims against port operators while simultaneously starting up 2025-2026 cruise season operations.

The Panama Canal remains at the core of global maritime trade despite ongoing negotiations and controversy, providing a global hub. Late December 2025 will mark another critical period.

BlackRock-Led Ports Acquisition in Jeopardy

BlackRock-backed $23 billion deal to acquire 41 global ports belonging to CK Hutchison, including key terminals on both ends of Panama Canal, may collapse under pressure from China's state-owned Cosco Shipping which has requested majority control in their consortium, sources familiar with negotiations suggest. BlackRock and Mediterranean Shipping Company (MSC) may withdraw due to Cosco's demands and consider withdrawing, according to sources familiar with discussions.

Initial terms from March 2025 granted BlackRock the controlling interest in Panama Canal ports, with MSC taking majority ownership in regions such as Europe, Southeast Asia, and the Middle East. Cosco was invited as a minority partner with 20-30% to secure Chinese regulatory approval - however its desire for over 50% has delayed progress further - The Wall Street Journal first reported their demand, though its exact nature remains uncertain due to potential negotiation tactics or Beijing directives.

President Trump applauded the initial deal as a means of countering perceived Chinese influence over the canal, while Beijing decried it as an attack on national interests. Talks are underway and their outcomes may impact US-China relations in 2026.

Corruption Audit Reveals $1.2 Billion Loss at Panama Ports

Panama's Comptroller General has charged Panama Ports Company, operator of Cristobal and Balboa terminals flanking the Panama Canal, with incurring over $1.2 billion in state losses due to unfavorable administrative decisions and contract modifications since 1997 concession.

This scandal adds over $5 billion in alleged public fund losses from two decades of corruption in Panama. Furthermore, an audit conducted on key canal infrastructure highlighted governance challenges which were met with scrutiny from maritime stakeholders.

Cruise Season 2025-2026 Has Been Officially Announced

The Panama Canal Authority marked its 2025-2026 cruise season by celebrating with a northbound transit of the Queen Elizabeth. This event signaled increased passenger traffic through this vital waterway.

Separately, the Authority announced impressive fiscal year 2025 results, maintaining operational and financial resilience with increased transits and tonnage figures.

Tensions Broader Geopolitically Tensions Linger

Panama Canal ports have become a focal point in US-China trade disputes, particularly given President Trump's desire to regain influence. US firms bidding for terminals face Chinese opposition for holding 51% shares in Cosco.