Earlier this week state-owned Cosco, which owns one of the world's largest tanker fleets, said it would suspend operations at the Balboa port after a court annulled a contract that had allowed a subsidiary of Hong Kong-based CK Hutchison Holdings to operate both terminals since 1997.

Panamanian authorities took back control of the trans-oceanic waterway on February 23, and Minister for Canal Affairs Jose Ramon Icaza told reporters "the Cosco issue really took us a bit by surprise."

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

"Cosco's cargo is certainly important for Panama and we hope they reconsider the decision not to use the port of Balboa," Icaza said.

He added that Cosco's cargo "accounts for four percent of the port's throughput, it is a significant volume and we hope it will eventually return."

Almost 10 million containers passed through Panama's ports last year.

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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