Panama: The Panama Canal

The Panama Canal is indeed a critical cornerstone of global maritime transportation.  It serves as a vital link between the Atlantic and Pacific Oceans, enabling ships to avoid the lengthy and hazardous voyage around Cape Horn at the southern tip of South America.  By providing a shortcut, the canal contributes to the reduction of carbon emission and helps mitigate the environmental impact of global maritime transportation.  
Here are some key reasons why the Panama Canal is crucial for global maritime transportation:

• Vital Strategic Asset: The United States has a vested interest in the secure, efficient, and reliable operation of the Panama Canal.  The canal’s strategic significance extends beyond economic benefits and encompasses national security, defense capabilities, diplomatic relations, and logistical resilience.
• Shorter Transit Routes: The canal shortens the distance between ports on the east and west coast of the Americas, facilitating more efficient trade and transportation.  Around 72 percent of transiting ships are either going to or coming from U.S. ports.
• Time and Cost Savings: By using the Panama Canal, ships can save considerable time and fuel costs.  The shorter transit time reduces the time in transit and enables faster delivery of goods.  This benefit is particularly significant for time sensitive cargoes, perishable goods, and industries with just-in-time supply chains.
• Global Supply Chain: The canal plays a crucial role in global supply chains, supporting the movement of various commodities, including Dry Bulk, Container, Chemical Tankers, LPG carriers, LNG, Vehicle carriers, Refrigerated cargo, General Cargo and Passengers.

The U.S. Commercial Service can help you identifying potential exports to Panama.  To learn about maritime industry contact Jeane Zuniga, Commercial Specialist in Panama at Jeane.Zuniga@trade.gov.