A Pathway Through the World

Have you ever wondered how the things we buy make their way to us? Is it by air or by sea? For much of the world’s goods, the answer lies in the Panama Canal. This engineering marvel connects the Atlantic and Pacific Oceans, creating a shortcut that handles roughly 5 percent of the world’s seaborne trade and 40 percent of US container traffic​.

Channeling the World’s Trade

Before the canal, ships traveling from the Atlantic to the Pacific (or vice versa) had to navigate around Cape Horn at the southern tip of South America. Massive waves, powerful currents, and extreme winds made it one of the world’s most perilous passages. In fact, historians estimate that 10,000 sailors lost their lives in the days before modern vessels and navigation.

The Panama Canal offers a safer route. Not only does it spare ships from the hazardous conditions, but it also shaves 9,000 miles (almost 15,000 kilometers) off the journey. Those 18 fewer days of travel enable faster deliveries and lower costs.

Roosevelt’s Big Dig

Building the Panama Canal began in 1881 when French entrepreneur Ferdinand de Lesseps attempted to repeat his success in developing the Suez Canal. Eight years later, the project was abandoned because of poor planning, climate challenges, and tropical diseases. In 1904, President Theodore Roosevelt spearheaded the US effort to take over construction, seeing the canal as vital to the country’s commercial and military power. Civil engineer John Frank Stevens laid the groundwork, and US Army officer George Washington Goethals oversaw its completion. The canal was officially opened on August 15, 1914.

Panama Canal construction in 1913. Photo credit: The Everett Collection

Upgrades Make Waves

The Panama Canal’s original locks were 33.5 meters (110 feet) wide, which worked well for ships of the 20th century. However, as vessels grew larger, an upgrade was needed. Construction on an expansion began in September 2007 and was finished in June 2016. The new, wider locks doubled the canal’s capacity. Today, this 51-mile (82-kilometer) waterway typically accommodates between 9,000 and 14,000 ships annually.

Keeping the Canal Afloat

The Panama Canal relies on regular rainfall to keep its water levels stable. Each ship passing through all 12 locks uses about 50 million gallons of freshwater. This water lifts and lowers the ship, then flows out to the oceans, used only once in the process.

Panama Canal’s Miraflores Lock​. Photo credit: SL_Photography

The region around the canal gets about eight feet of rain each year. During dry seasons, water levels drop and canal operations slow. In 2024, a severe drought reduced the number of transits by 29 percent. To tackle these challenges, canal authorities are exploring solutions like better water conservation and constructing a new reservoir.

The Panama Canal is more than a shortcut. From its historic construction to its modern-day upgrades, it has transformed the way goods move around the planet. So, the next time you buy something produced in another country, remember—you might have the Panama Canal to thank!

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