Panama missed a deadline to respond to an ICC case seeking $2B in damages over port seizures, sparking tensions with China and operational disruptions.

Panama Ports Company, a unit of Hong Kong’s CK Hutchison, says Panamanian authorities missed a March 13 deadline to respond to an ICC arbitration case seeking at least $2 billion in damages over Panama’s seizure of the Balboa and Cristobal ports. Panama claims the original concession agreement was unconstitutional, leading to the government’s takeover and raids on PPC facilities, which the company says involved armed personnel and confiscation of documents. PPC alleges ongoing disruptions to operations and violations of the rule of law. Meanwhile, China’s Cosco Shipping suspended operations at Balboa, prompting Panama to urge a reversal. China has also intensified inspections on Panama-flagged ships, detaining 28 in a week, raising concerns over shipping and geopolitical tensions.