Work on the Panama Canal, orchestrated by a Spanish-led consortium, has ground to a halt over a dispute about cost.
A new lock was being built to accommodate modern vast cargo ships transporting 12,000 containers.
But now work has been suspended in the unresolved dispute over $1.6bn (£1bn), which the construction group claims it is due.
Earlier this week, the consortium said work had not stopped which would put 10,000 jobs risk.
But by Friday, it admitted that work had been suspended and placed the blame on the Panama Canal Authority for failing to extend a negotiation period.
The dispute concerning the overspend has been raging for some months, with Spanish ministers obliged to fly to Panama and attempt to pour oil on troubled waters.
The consortium also claimed that the Canal Authority has not paid an outstanding $50m bill, which would allow the companies to carry on the work in the short term.
Work on the lock began in 2009 and was scheduled for completion in June 2015, nine months behind the original timetable, at an overall cost of approximately $5.2bn.
The Canal will celebrate its centenary in August. It has proved to be one of the world’s busiest maritime routes, used by more than 13,000 ships every year.
