The Panama Canal (Spanish: Canal de Panamá) is an artificial 82 km (51 mi) waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean. The canal cuts across the Isthmus of Panama and is a conduit for maritime trade.
Thereof, what is the Panama Canal used for?
The canal permits shippers of commercial goods, ranging from automobiles to grain, to save time and money by transporting cargo more quickly between the Atlantic and Pacific Oceans.
Additionally, does the US still pay rent for the Panama Canal?
In 1903, Panama declared its independence from Colombia in a U.S.-backed revolution and the U.S. and Panama signed the Hay-Bunau-Varilla Treaty, in which the U.S. agreed to pay Panama $10 million for a perpetual lease on land for the canal, plus $250,000 annually in rent.
What would happen if Panama Canal broke?
If the canal were to 'break', the water would drain from the lakes and locks. If the crossing were all at the same level, (without locks or lakes), it'd possibly consist of a set of rapids, as the Pacific ocean is a little higher than the Atlantic at Panama's latitude.
What are the advantages of controlling the Panama Canal?
Because of the Canal, the U.S. was able to ship supplies so much faster. The faster a country can ship, the more willing they are to trade. They are willing to trade more because they don't have to spend so much money on fuel. Because they spend less money on fuel, they can carry more supplies.