Source: Panama Canal Authority.
The construction of the Panama Canal in the early 20th century was mainly justified to support and expand trade between the US East and West coasts. In 2024, the Panama Canal handled 210.3 million tons of cargo, but American intercoastal trade accounted for less than 2.5% of this tonnage. Still, about 76% of the tonnage handled by the canal concerns an American origin or destination. The most significant trade route serviced by the canal involves connecting Asia to the US East Coast (48.4% of tonnage), followed by the West Coast South America (WCSA) / US East Coast route (13.9%). In particular, the importance of the Asia/East Coast route largely justified the Panama Canal expansion project to reinforce its economies of scale.
The US East Coast has become a particularly contestable market for containerized trade with Asia. The US East Coast / WCSA and US East Coast / WCCA (West Coast of Central America) routes have grown the most, underscoring the canal’s growing regional importance. Economic development in Latin America is expected to increase the amount of intercoastal trade within the region. More than a century after its opening, the commercial function of the Panama Canal has considerably changed, and it is expected to continue to do so in the post-expansion era.