Cosco, which owns one of the world's largest fleets of tankers, is targeting the Pacific Ocean port of Balboa, which Panamanian authorities took back under their control on February 23.

Panama also retook control of the Atlantic Ocean port of Cristobal after a court annulled a contract that had allowed a subsidiary of Hong Kong-based CK Hutchison Holdings to operate both terminals since 1997.

Last year, 38 percent of the containers that passed through the Panama Canal went through these two ports.

China threatened Panama with payback after the court's decision.

Shanghai-based and state-owned Cosco said in a memo published by Panamanian daily La Presna that it would no longer have "any departures or arrivals at the port of Balboa."

"We suggest you take the necessary measures to avoid any delays and setbacks in your logistics," the company added.

AFP was unable to independently confirm this change immediately.

The Central American country has been swept up in broader tensions between Washington and Beijing, with US President Donald Trump last year claiming, without providing evidence, that China effectively runs the canal.

Panama has always denied Chinese control over the 80-kilometer (50-mile) waterway, which is used mainly by the United States and China.

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COSCO

A.P. MOELLER-MAERSK