The Panama Canal, a man-made 82-kilometer waterway, links the Atlantic and Pacific Oceans across the Isthmus of Panama. It significantly facilitates maritime trade. Ships are raised and lowered through a lock system, utilizing Gatun Lake, an artificial freshwater lake created by damming the Chagres River and Lake Alajuela. This lake, situated 26 meters above sea level, minimizes the excavation work needed for the canal's construction. Each ship's passage consumes approximately 200,000,000 liters of freshwater. Currently, the canal faces challenges due to decreasing water levels caused by droughts.
In June 1902, the US Senate approved the Spooner Act, which favored building a canal through Panama.
The "Thousand Days' War" in Colombia ended in November 1902, leaving the country weakened and unable to effectively respond to the Panamanian uprising.
The Hay-Herrán Treaty, granting the US rights to build the canal, was signed in January 1903.
The US Senate ratified the Hay-Herrán Treaty in March 1903, but Colombia rejected it.
The Hay-Bunau-Varilla Treaty, granting the US extensive rights over the Panama Canal Zone, was signed in November 1903.
The US blocked Colombian troop movements and recognized Panama's independence in November 1903.
The US role in Panama's independence and the subsequent treaty were criticized by some as an act of conquest in 1903.
On May 4, 1904, the US formally took control of the Panama Canal property from the French. They inherited a depleted workforce, disorganized infrastructure, and equipment in poor condition. The Isthmian Canal Commission (ICC) was established to oversee the construction and avoid the problems faced by the French.
On May 6, 1904, President Roosevelt appointed John Findley Wallace as chief engineer. He faced challenges with disease, inadequate infrastructure, and bureaucratic issues.
In 1904, Colonel William C. Gorgas was appointed chief sanitation officer. He implemented measures to combat yellow fever and malaria, including sanitation projects, fumigation, and mosquito control, which significantly reduced disease-related deaths, although about 5,600 workers still died from disease and accidents during the US construction phase.
In 1904, the United States took control of the Panama Canal project from the French.
The US purchased French equipment and excavations for the Panama Canal in 1904, as well as paying Panama for the rights.
In June 1905, John Findley Wallace resigned due to the challenges he faced. John Frank Stevens was appointed as the new chief engineer, who viewed the ICC's bureaucracy as a hindrance.
In 1905, a US engineering panel was commissioned to review the canal design.
In January 1906, the panel recommended a sea-level canal. However, John Stevens argued for a lock system, which was eventually adopted.
In 1907, George Washington Goethals replaced Stevens as chief engineer and led the project to completion in 1914.
The Tehuantepec Railway, a precursor to the modern Interoceanic Corridor, was first inaugurated in 1907 but later fell into disuse.
In 1908, the width of the locks at Gatun was increased to 33.53 meters (110 feet) following a request from the U.S. Navy to accommodate large warships.
A controversy surrounding canal tolls emerged between 1912 and 1914.
On October 10, 1913, President Wilson triggered the explosion that destroyed the Gamboa Dike, joining the Atlantic and Pacific oceans.
Gatun Lake, a crucial part of the Panama Canal system, was created in 1913 by damming the Chagres River. It provided the water needed for the canal's lock operations.
In January 1914, Alexandre La Valley became the first self-propelled vessel to transit the canal.
In August 1914, the SS Cristobal was the first ship to make a complete ocean-to-ocean transit of the Panama Canal.
Morgan Adams paid the first toll for a pleasure boat using the Panama Canal in August 1914, marking a historical moment for recreational use of the waterway.
The Panama Canal was formally opened on August 15, 1914, marking a significant milestone in engineering and global trade.
The opening of the canal in 1914 significantly altered maritime trade routes, affecting ports in Chile and impacting industries like sheep farming in Patagonia.
When the canal opened in 1914, approximately 1,000 ships passed through annually.
The Panama Canal officially opened in 1914 under US control.
The opening of the Panama Canal in 1914 contributed to the decline of the Tehuantepec Railway.
The canal tolls controversy that began in 1912, continued into 1914
The Panama Canal built by the Americans in 1914 incorporated many elements of the French plan from 1898, including a lock canal design with multiple locks and artificial lakes.
In 1914, the Panama Canal construction was completed under the leadership of George Washington Goethals.
In 1914, steam shovels from the Panama Canal project were repurposed for use in the Chuquicamata copper mine in Chile.
On September 18, 1915, a landslide in the Culebra Cut closed the canal for nearly seven months.
June 10, 1916, was the original target completion date for the Panama Canal project, although it was completed two years earlier.
In 1921, the Thomson-Urrutia Treaty was signed between the United States and Colombia. The US agreed to pay $25 million in installments and grant special privileges in the Canal Zone. In return, Colombia recognized Panama's independence.
Richard Halliburton paid the lowest ever toll for the Panama Canal in 1928, just 36 cents, for swimming through the canal.
In 1928, the USS Saratoga, during its first transit through the Gatun Locks, knocked over the lamp posts along the canal, highlighting the unpreparedness for aircraft carriers.
In 1934, the maximum estimated capacity of the Panama Canal was projected to be around 80 million tons per year.
The Madden Dam, completed in 1935, created Madden Lake (later Alajuela Lake) to address the canal's water supply issues.
Construction of larger locks for bigger warships began in 1939 but was later canceled after World War II.
The Third Lock Scheme of 1939 provided a precedent for later expansion plans to accommodate larger ships and increased traffic.
The US protectorate over Panama ended in 1939.
The 1956 Suez Crisis, during which the U.S. pressured France and the UK to abandon their attempt to retake the Suez Canal, fueled Panamanian demands for control over the Panama Canal.
In January 1964, tensions between Panamanians and the United States over control of the Panama Canal Zone culminated in the Martyr's Day Riots. Approximately 20 Panamanians and 3-5 U.S. soldiers were killed during the protests.
Negotiations between the United States and Panama regarding the Panama Canal began in 1974, paving the way for the eventual transfer of control.
The Torrijos–Carter Treaties were signed in September 1977 by U.S. President Jimmy Carter and Omar Torrijos of Panama, initiating the process of transferring control of the Panama Canal to Panama.
The Torrijos-Carter Treaties were signed in 1977, initiating the transfer of control of the Panama Canal to Panama.
The Torrijos-Carter Treaties, signed in 1977, transferred control of the Panama Canal to Panama. Concerns arose regarding the canal's future efficiency and maintenance post-U.S. withdrawal.
Researchers warned in 1978 that deforestation in the Panama Canal watershed could negatively impact the canal's operation.
By 1985, the forested area in the Panama Canal watershed had decreased to 30%, highlighting the ongoing issue of deforestation.
In 1986, a crude oil spill near the Caribbean entrance of the Panama Canal caused damage to local plant and invertebrate life, illustrating the environmental risks associated with shipping.
The Berendrecht Lock in the port of Antwerp, Belgium, was completed in 1989. This lock served as the design basis for the new Panama Canal locks and was, at the time, the second largest lock worldwide.
The US invasion of Panama in 1989 marked the last time the Panama Canal was closed before the closure in December 2010 due to heavy rainfall.
In December 1999, Panama officially assumed full control of the Panama Canal, marking a significant historical moment.
In 1999, the Panamanian government assumed full control of the Panama Canal.
In the fiscal year 1999, the Panama Canal handled 227.9 million PC/UMS tons of goods, marking the beginning of a period of significant growth in cargo volume.
As a signatory to the UN Global Compact and a member of the World Business Council for Sustainable Development, the ACP (Panama Canal Authority) developed a sustainable expansion program in 2000. This program was designed to protect the canal watershed's resources and incorporates water-saving measures.
Climate change's impact on Arctic ice made a previously impassable route between the Atlantic and Pacific oceans more accessible by 2000, with some ships successfully transiting the route.
Deforestation, land degradation, and erosion caused by population growth continued to pose a threat to the Panama Canal watershed's ecosystem in 2000.
In 2003, the Panama Canal saw 11,725 ocean-going transits. An increasing volume of imports from Asia, previously directed to US West Coast ports, began using the canal to reach the East Coast.
By 2004, reports indicated that the Panama Canal's operations had improved under Panamanian control, leveraging practices from the American administration. Efficiency metrics, like Canal Waters Time (CWT), ranged between 20 and 30 hours in the early 2000s.
In 2005, the Panama Canal handled 280 million PC/UMS tons. The expansion project was designed to accommodate projected traffic growth to nearly 510 million PC/UMS tons by 2025.
In April 2006, Senior Captain Raffaele Minotauro, an Unlimited Oceangoing Shipmaster Senior Grade of the former Italian governmental navigation company "Italian Line," was awarded the title of Honorary Panama Canal Pilot.
The highest priority passage fee was paid on August 24, 2006, by the tanker Erikoussa to avoid a seven-day delay due to maintenance work.
On October 22, 2006, a national referendum in Panama overwhelmingly approved the canal expansion proposal, with approximately 80% voting in favor. This proposal aimed to double the canal's capacity at an estimated cost of US$5.25 billion.
In 2006, it was projected that 37% of the world's container ships would be too large for the Panama Canal by 2011. This highlighted the need for expansion to maintain the canal's competitiveness.
The February 2007 issue of Popular Mechanics magazine featured an article detailing the engineering challenges and solutions involved in the Panama Canal expansion project.
On September 3, 2007, the Panama Canal Expansion Program was officially launched with a large public event featuring a significant initial explosion to begin the dry excavation phase.
Construction began in September 2007 on a third, wider set of locks for the Panama Canal to accommodate larger ships.
Construction on the Panama Canal expansion project began in 2007, marking a significant step towards accommodating larger vessels and increasing traffic capacity.
Starting in 2007, toll fees for passenger vessels increased significantly, impacting the cost of using the canal.
The Panama Canal experienced a surge in traffic, with transits rising to 13,233 in 2007. Total tonnage reached a record high of 312.9 million PC/UMS tons, reflecting the growth in ship size and Panamax vessel usage.
Improvements to the Panama Canal increased its capacity from 300 million PCUMS in 2008. These improvements were separate from and complementary to the new locks project.
By 2008, traffic through the Panama Canal had risen to 14,702 vessels.
In July 2009, a consortium of companies was awarded the contract to construct new locks for the Panama Canal. The winning bid, submitted by a group including Belgian, Spanish, Italian, and Panamanian firms, was significantly lower than competing bids due to a smaller budget for concrete and steel reinforcement.
Canal transits decreased to 12,855 in 2009, with tonnage falling to 299.1 million tons. Despite this decline, the trend of increasing ship size and Panamax vessel transits continued.
The Panama Canal's maximum sustainable capacity of 340 million PC/UMS tons per year was expected to be reached between 2009 and 2012, further emphasizing the urgency of expansion.
A follow-up article on the Panama Canal expansion project was published in the February 2010 issue of Popular Mechanics magazine.
The cruise ship Norwegian Pearl paid the highest regular toll for Panama Canal passage on April 14, 2010, amounting to US$375,600.
In December 2010, the Panama Canal experienced its first closure since the 1989 US invasion due to record-breaking rainfall. The 17-hour closure was also accompanied by the collapse of an access road to the Centenario Bridge.
By 2011, the increasing size of container ships was predicted to significantly impact the Panama Canal's market share if expansion plans were not implemented.
In 2011, Colombia announced a proposal for a railway connecting its Pacific and Caribbean coasts.
By June 2012, a 30-meter reinforced concrete monolith, the first of 46, was completed for the new Pacific-side lock walls as part of the canal expansion.
In early July 2012, the Panama Canal expansion project was reported to be six months behind schedule, pushing the expected opening to April 2015 instead of October 2014.
The Panama Canal's maximum sustainable capacity of 340 million PC/UMS tons per year was expected to be reached between 2009 and 2012, further emphasizing the urgency of expansion.
The capacity of the Panama Canal further increased to 340 PCUMS in 2012, due to improvements implemented before the new locks project.
Over 815,000 vessels had passed through the Panama Canal by 2012.
In June 2013, Nicaragua granted HKND Group a 50-year concession to develop a canal through the country, presenting a potential alternative route to the Panama Canal.
The canal's tonnage increased to 320.6 million PC/UMS tons in the 2013 fiscal year with 13,660 transits.
A contract dispute arose in January 2014, jeopardizing the progress of the Panama Canal expansion project.
Despite the contract dispute earlier in the year, construction on the Panama Canal expansion reached its targets by June 2014.
In July 2014, a route for a proposed canal through Nicaragua was approved. This project, led by the HKND Group, aimed to create a 280 km canal but ultimately faced significant challenges and was later abandoned.
By September 2014, the new gates for the expanded Panama Canal were projected to be open for transit at the beginning of 2016.
The original target date for the Panama Canal expansion opening was October 2014, which was later pushed back to April 2015 and then to early 2016.
Tonnage further rose to 326.8 million PC/UMS tons in fiscal year 2014, with 13,481 transits.
In 2014, Commodore Ronald Warwick, former Master of the Cunard Liners Queen Elizabeth 2 and RMS Queen Mary 2, was awarded Honorary Panama Canal Pilot for having traversed the canal more than 50 times.
As of April 29, 2015, minimum tolls for small vessels using the Panama Canal were assessed based on their overall length.
Due to delays, the Panama Canal expansion opening was rescheduled to April 2015 from the original target date of October 2014.
The flooding of the newly constructed Panama Canal locks commenced in June 2015, starting with the Atlantic side and followed by the Pacific side.
By 2015, the Colombian railway proposal had lost relevance and was no longer actively pursued.
By 2015, traffic through the Panama Canal reached 340.8 million tons, significantly exceeding the initial estimations made in 1934.
In 2015, the canal carried a record 340.8 million PC/UMS tons across 13,874 transits.
The 2015-16 fiscal year was marked as one of the driest periods on record, impacting the number of ships that could pass through the Panama Canal.
On March 23, 2016, the official inauguration date for the expanded Panama Canal was set for June 26, 2016.
New toll rates for container ships were implemented on April 1, 2016, based on TEU capacity and loaded containers.
As of April 2016, passenger vessels over 30,000 tons saw changes in toll rates based on berth occupancy.
A more complex toll system for the Panama Canal was implemented on April 1, 2016, with different rates for neopanamax locks and a new category for natural gas transport.
In June 2015, the re-inauguration of the Panama Canal, after the expansion project, was initially scheduled for April 2016.
Revised toll rates for container ships went into effect in April 2016, changing the pricing structure.
Construction of the third set of locks for the Panama Canal was completed in May 2016.
On June 26, 2016, the expanded Panama Canal opened for commercial traffic. The Cosco Shipping Panama, a Neopanamax container ship, was the first vessel to transit the new locks.
The expanded Panama Canal was officially inaugurated on June 26, 2016.
The expanded Panama Canal, with its new locks allowing for larger ships, began commercial operation in June 2016.
In 2016, toll rates for most other vessels, aside from container and passenger ships, were based on PC/UMS net tons, with varying rates for loaded and ballast ships.
The 2016 expansion of the Panama Canal led to increased global trade and, consequently, a rise in the spread of invasive species between oceans. Ships transiting the canal facilitated the movement of these species, posing a threat to local ecosystems.
The Panama Canal expansion project was completed in 2016, enhancing its capacity and ability to handle larger ships.
The expanded Panama Canal was expected to open at the beginning of 2016.
A major expansion project completed in 2016 created larger locks and channels in the Panama Canal, allowing for the passage of bigger ships (Neopanamax).
By May 2017, doubts emerged about the financing and progress of the Nicaragua Canal project, as no significant construction work had begun.
Modified tolls and categories of tolls took effect on October 1, 2017, for the Panama Canal.
In 2017, the average time for ships to pass through the Panama Canal was 11.38 hours.
By February 2018, the Nicaragua Canal project was widely considered defunct by analysts, despite claims from project leaders that work was ongoing.
In February 2018, the Nicaragua Canal project was widely considered defunct due to lack of progress and financing concerns.
Despite the disappearance of the HKND Group in April 2018, the Nicaraguan government intended to proceed with land expropriations related to the canal project.
HKND Group, the company behind the Nicaragua Canal project, closed its offices in April 2018 without providing any forwarding contact information, further solidifying the project's apparent failure.
2019 was recorded as the fifth driest year in 70 years, further highlighting the ongoing challenges posed by low water levels for the Panama Canal.
A drought in 2019 significantly lowered water levels in Gatún Lake, a crucial source of fresh water for both the Panama Canal and Panama City, highlighting the strain of the canal's water usage.
Mexico initiated the construction of the Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT) in 2019.
In early December 2023, low water levels in the Panama Canal caused ship backups. Only 22 ships per day could transit, compared to the usual 36.
Mexico's Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT), primarily a railway project, is scheduled to open on December 22, 2023.
By January 2024, the number of ships allowed to transit the Panama Canal per day increased slightly to 24, but remained significantly below the normal capacity due to continued low water levels.
All components of Mexico's Interoceanic Corridor, including related infrastructure and industrial parks, are expected to be operational by July 2024.
The expanded Panama Canal is projected to have a maximum sustainable capacity of about 600 million PC/UMS tons per year by 2025.