Quote
Factory Buyer Rate Questions

Blog

History of the Panama Canal, one of the most important and busiest waterways in the world

18 Aug 2023

By Nick Lung

The Panama Canal is an artificial canal located on the Isthmus of Panama in Central America, connecting the Pacific Ocean and the Atlantic Ocean. It is a key international shipping channel that transfers ships from one ocean to another, with a total length of 77.1 kilometers. Three sets of locks (locks) enable ocean-going ships to shuttle between the Pacific Ocean and the Atlantic Ocean, saving the need to bypass South America in the past Traveling an additional 15,000 kilometers to the southern tip avoided the perilous voyage around South America.

 

Main features of the Panama Canal:

Location: The Panama Canal straddles the Isthmus of Panama, which separates the Mesoamerican region of North America from the Colombian region of South America.

 

Lock system: A key part of the canal is the lock system, which is used to raise ships to high altitude sections and then lower ships to another ocean level. These locks allow ships to navigate through elevation changes of approximately 26 meters (85 ft) between the waterways.

 

Panamax: The iconic ship shape of the Panama Canal, also known as Neo-Panamax, is designed according to the dimensions of the canal. The size of these ships limits their length, width and draft to ensure they can safely navigate the canal.

 

Expansion Program: In 2016, the Panama Canal underwent a major expansion known as the Panama Canal Expansion Program. The plan includes new locks, called the Panama Canal Expansion Locks, to allow larger ships, called neo-Panamaxes, to pass through the canal.

 

Economic Importance: The Panama Canal has had a huge impact on international trade and shipping. It enables goods to be transported from one ocean to another more quickly, shortens the distance and time of voyages, lowers transportation costs, and facilitates the development of international trade.

 

The construction and operation of the Panama Canal has gone through multiple stages in history, from early attempts to successful construction to modern expansion, all of which reflect the great achievements of human technology and engineering.

 

Since the 16th century, countries such as Spain, France and the United Kingdom have all proposed the idea of ​​building a canal on the Isthmus of Panama in order to shorten the navigation distance. However, most of these early attempts were unsuccessful due to technical limitations and issues such as disease. In the late 19th century, French engineer Ferdinand de Lesseps attempted to build a canal, inspired by his previous success at the Suez Canal. However, the attempt also failed in the face of challenges such as the harsh climate in Panama, mud slides and yellow fever.

 

The United States took over construction of the Panama Canal in 1904 and it was completed in 1914. The United States has solved problems such as mud slides, disease and water supply through improved engineering technology. The construction of the canal not only greatly shortened the sailing distance between the Pacific Ocean and the Atlantic Ocean, but also promoted trade and international exchanges. In 1977, Panama and the United States signed the "Panama Canal Treaty", agreeing to gradually transfer the sovereignty of the Panama Canal to Panama, and officially realized the transfer of sovereignty in 1999. This marks the full independence and sovereignty of the Panama Canal. After the return of autonomy, the Panama Canal underwent modernization and expansion. In 2007, the Panama Canal underwent an expansion project known as the Panama Canal Expansion Project. At the heart of the plan is the construction of new locks that will accommodate larger ships, known as "Panamax" or "Neo-Panamax" vessels.

Appreciate if you could share TGL Blog among your friends who are interested in first-hand market information of supply chain and updated economic incidents.

Get a Quote Go Top