The Panama Canal is a 48-mile ship canal connecting the Pacific and Atlantic Oceans. It uses a system of six lock chambers (each ~1,000 ft long, 110 ft wide) to raise and lower vessels. Locks fill with water, gates close, water level adjusts to match the next chamber, then gates open for passage. Transit takes ~8 hours. The canal operates 24/7, accommodates all ship sizes, and handles ~5% of global trade. Safety features include emergency locks, patrol boats, and armed guards. It generates ~$2.5 billion annually for Panama.