The Panama Canal provides an essential shortcut for ships traveling between the Atlantic and Pacific Oceans, benefiting U.S. shipping.

The Panama Canal is a critical waterway for U.S. shipping, offering a vital shortcut for vessels traveling between the Atlantic and Pacific Oceans. Cutting the travel distance by thousands of miles significantly reduces shipping time and costs for goods moving between U.S. east and west coast ports, as well as international trade routes. Without the canal, ships would need to navigate around the southern tip of South America. The canal's strategic location enhances global trade efficiency, supporting U.S. commerce and making the U.S. a more competitive player in international shipping. It remains an essential part of the global supply chain.