Chokepoints explained
Panama Canal
The Panama Canal crosses the Isthmus of Panama to connect the Atlantic and Pacific oceans.
Run by the Panama Canal Authority, it saves ships the long voyage around South America and carries trade between the US East Coast, Asia and the west coast of South America.
The canal uses locks fed by freshwater lakes, so drought can limit how many ships pass and how deeply they can load, alongside political and security risks.
Countries around the Panama Canal: this week's threat scores
Frequently asked questions
What is the Panama Canal?
The Panama Canal crosses the Isthmus of Panama to connect the Atlantic and Pacific oceans.
Why does the Panama Canal matter for business?
The canal uses locks fed by freshwater lakes, so drought can limit how many ships pass and how deeply they can load, alongside political and security risks.
Published by Zed Three. Last updated Nov 2, 2026.
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