The Panama Canal is a 48-mile long artificial waterway located in Panama that connects the Atlantic Ocean to the Pacific Ocean. It allows ships to bypass the longer route around Cape Horn, thus saving time and money.
Related terms
Suez Canal: A man-made canal in Egypt that connects the Mediterranean Sea with the Red Sea, providing a shorter trade route between Europe and Asia.
Cape Horn: The southernmost headland of South America, known for its treacherous waters and strong winds. Ships used to sail around this cape before the construction of the Panama Canal.
Locks: Enclosed chambers within canals that are used to raise or lower water levels in order to lift or lower ships as they pass through different elevations on their journey. They help ships navigate through canals with varying water levels.