The Panama Canal significantly boosted commerce by providing a shorter and more efficient shipping route between the Atlantic and Pacific Oceans, eliminating the lengthy and hazardous journey around the southern tip of South America. This reduced transit times and shipping costs, facilitating increased trade and economic growth. The canal also allowed for larger vessels, known as Panamax ships, to transit, further enhancing cargo capacity and global trade efficiency. As a result, it transformed Panama into a vital commercial hub in International Shipping.
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