Why is the Panama Canal important to global trade?
Posted on Aug 16, 2025 / Travel
The canal shortens voyages between the Atlantic and Pacific by thousands of miles, saving time and fuel. It supports just-in-time supply chains for containerized goods, energy shipments, and bulk commodities. Ports along the U.S. Gulf and East Coasts, Latin America, and Asia benefit from more direct connections. The expansion enabled newer, larger ships to serve these markets efficiently. As a strategic chokepoint, disruptions can ripple through global logistics. Reliable canal operations are thus crucial for worldwide commerce.
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