The Panama Canal was built to create a faster, safer sea route between the Atlantic and Pacific Oceans, mainly to boost global trade and military mobility.
Economic reasons
Sailing around South America’s Cape Horn took thousands of extra miles, adding weeks to voyages and raising costs and risks for merchant shipping. A canal across Panama allowed ships to cut directly between oceans, dramatically reducing travel time and fuel costs and increasing the efficiency and volume of international trade.
Military and strategic reasons
For the United States in particular, a canal was seen as vital to move naval forces quickly between the Atlantic and Pacific, especially after the long voyage of the battleship USS Oregon during the Spanish–American War highlighted the problem. Control of a Central American canal was also viewed as essential to U.S. power projection and security, allowing rapid response to events in both oceans.
Political and imperial motives
Building and controlling the canal gave the United States significant influence in the Western Hemisphere and over key global shipping routes. The project was tied to broader U.S. expansion and foreign policy goals in Latin America, reflecting a desire to assert leadership in world affairs.
