How did he Panama Canal boost commerce?

Prior to the construction of the Panama Canal, ships traveling from the Atlantic Ocean to the Pacific Ocean or verse versa had to sail around the southern tip of South America, passing through the treacherous waters of Cape Horn. This route added thousands of nautical miles and weeks of travel time, causing delays in the delivery of goods and increasing transportation costs.

The Panama Canal greatly shortened this shipping route, providing a more direct and efficient connection between the two oceans. Ships could now pass through the canal and travel between the Atlantic and Pacific in a matter or days, significantly reducing transit times and allowing goods to reach their destination faster.

Increased Volume of Trade

With the construction of the canal, the volume of global trade increased dramatically. The reduced shipping costs and faster transit times made it more economical to transport goods between countries, encouraging increased trade and economic activity.

Expansion of Trade Routes

The Panama Canal opened up new trade routes and enabled shipping companies to reach destinations more easily. This facilitated the movement of goods between previously disconnected regions and contributed to the expansion of global trade networks.

Economic Growth

The Panama Canal has played a significant role in boosting commerce and economic growth. It has facilitated the efficient transportation of goods, reduced trade barriers, and increased international cooperation. As a result, it has contributed to the overall economic prosperity of countries around the world.