What Is the Purpose of the Panama Canal?

The Panama Canal uses locks and artificial lakes to convey ships.

Located in Central America, the Panama Canal is a maritime shortcut between the Atlantic and Pacific oceans. Completed in 1914, the 51-mile shipping route cuts through the Isthmus of Panama, joining North and South America.

Benefits

Before the canal's construction, merchants traveled around South America's Cape Horn to reach destinations between the Pacific and Atlantic oceans. The Panama Canal saves time and money by eliminating thousands of miles from trade routes.

Traffic

In 2009, traffic through the Panama Canal totaled 14,342, resulting in more than 1.4 billion tonnage-based tolls. The United States ranks first as a port of origin and destination for cargo transported through the canal.

Cargo

A variety of cargo is shipped through the canal, including food products, building materials, textiles and fuels. In 2009, 116,283 tons of principal commodities were shipped from the Atlantic to the Pacific via the southern route and 81,713 tons were transported from the Pacific to the Atlantic.

Statistics

According to the Panama Canal Authority, traffic through the Panama Canal makes up approximately five percent of the world's trade, offering passage to ships of all nations.

References

• The Library of Congress: The Panama Canal
• The Panama Canal Authority: This is the Canal
• U.S. Department of State: Building the Panama Canal

Resources

• University of Houston, Digital History: A Man, A Plan, A Canal, Panama