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Panama Court Voids Hong Kong Port Operator's Contract; DiBella Named FMC Chair; Trump's Canada Jet Threat By Mark R. Long | WSJ Logistics Report

Panama's Supreme Court annulled CK Hutchison's contract to operate two ports at either end of the Panama Canal, handing President Trump a victory for his ambitions in the Western Hemisphere and denting China's influence in the region .

The high court said the terms under which the Hong Kong company runs the ports of Balboa on the Pacific Coast and Cristóbal on the Atlantic were unconstitutional, setting the stage for the company's departure from the facilities.

Hutchison can't appeal the ruling, which it denounced, but can request clarifications that could delay the termination of its license, the WSJ's Santiago Pérez writes. The Hutchison unit operating the ports said it reserved the right to pursue international legal proceedings to protect its investment.

Last year, Hutchison agreed to divest itself of the two Panama container terminals and dozens of other ports worldwide to a group led by BlackRock and Mediterranean Shipping Co. for almost $23 billion. China's government opposed the sale, demanding that Chinese state-run shipping company Cosco have a majority stake and veto power

in the firm managing the global port assets.

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Quotable Regulation

President Trump selected Laura DiBella to lead the Federal Maritime Commission. A former commerce secretary for the state of Florida, DiBella takes over as the maritime regulator plays a more muscular role in shipping , the WSJ Logistics Report's Paul Berger reports.

The FMC regulates international ocean commerce with a focus on container shipping. Congress expanded the commission's powers in 2022 after retailers and manufacturers complained of unfair business practices during the Covid-19 pandemic

when they were charged fees for delays picking up and returning containers that were largely beyond their control.

The commission also is currently investigating how other business practices, such as foreign vessel-flagging and constraints at maritime chokepoints, such as the Suez Canal, threaten U.S. trade flows.

The Federal Maritime Commission raised the penalty

imposed on Mediterranean Shipping Co. to $22.7 million for violations of the Shipping Act during the pandemic. (Lloyd's List) Trade

President Trump threatened to ground Canadian-made aircraft and apply tariffs on imported jets in retaliation for what he said was the country's refusal

to certify U.S.-made Gulfstream aircraft. In a Truth Social post Trump targeted Bombardier Global planes for decertification, as well as "all Aircraft made in Canada."

The president wrote that Canada needed to approve Gulfstream's G500, G600, G700 and G800 models. Without the approval, he said the U.S. could apply a 50% tariff on imports of Canadian aircraft, the Journal's Paul Vieira, Dean Seal and Christopher Kuo report.

Relations between the Trump administration and Canada have deteriorated this month following Prime Minister Mark Carney's decision to strike a trade détente

with China, and his recent speech

against economic coercion. Last week, Trump threatened 100% tariffs

against all Canadian imports in the event Canada struck a free-trade pact with China. Carney said Ottawa has no intention of pursuing such a deal

Number of the Day In Other News The U.S. trade deficit rebounded

to $56.8 billion in November, nearly twice as large as the $29.2 billion deficit recorded in October, the Commerce Department said. (WSJ) Orders from U.S. factories rose 2.7% in November

to $621.6 billion, from $605.4 billion in October, the Census Bureau reported. (WSJ) Thirteen Chinese provinces have lowered their 2026 economic growth targets, signaling a potential national goal reduction . (WSJ) Dow is cutting 4,500 employees

as part of a cost-saving program that will lean on AI to increase productivity. (WSJ) Home Depot said it laid off 800 workers

associated with its corporate headquarters to boost the company's speed and focus more on its front-line workers. (WSJ) International Paper said it was splitting into two publicly traded companies -keeping its brand for North American operations and creating a new company for Europe, the Middle East and Africa. (WSJ) First Brands Group founder Patrick James and his brother were indicted by federal prosecutors

on charges of defrauding lenders ahead of the auto-parts company's collapse into bankruptcy. (WSJ) Norfolk Southern's CEO said the demand environment remains unclear

for 2026, as the railroad reported lower fourth-quarter income and revenue. (WSJ) U.S. regulators are launching an investigation into Alphabet's Waymo after one of its robotaxis hit a child

near an elementary school in Santa Monica, Calif. (WSJ) VSE plans to acquire

Precision Aviation Group for about $2.03 billion in cash and equity as it focuses on scaling its engine and component service capabilities. (WSJ) KettenWulf, a German manufacturer of industrial chains and sprockets, is investing $34 million on a new factory

in Auburn, Ala. (SupplyChain24/7) Canada and South Korea signed a non-binding agreement to bring Korean auto manufacturing to Canada

and strengthen industrial cooperation. (Bloomberg) FedEx said it was working with Boeing and air-safety regulators to bring its MD-11 cargo planes

back into service by May 31. (Reuters) ACI Transport named co-founder Gary Horton as its new CEO . (The Trucker) Clarification

Volvo expects to sell 265,000 heavy-duty trucks in North America this year. Because of a production error, Thursday's Logistics Report omitted the figure from the Number of the Day.

This week on the Dow Jones Risk Journal Podcast: Sanctions have created a vast fleet of poorly regulated tankers and a growing risk to global shipping and the environment. Also, the U.S. plan for Venezuelan oil money has issues. James Rundle hosts. You can listen to new episodes every Friday on Apple Podcasts , Spotify

and Amazon .

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com]. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

January 30, 2026 07:02 ET (12:02 GMT)

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