The Panama Canal is a 48-mile ship canal that connects the Atlantic and Pacific oceans across the Isthmus of Panama. Construction began in 1881 but was halted due to engineering challenges and disease. The US later took over the project and completed it in 1914. The canal features a system of locks that lift ships up 26 meters and a large artificial lake. It has significantly reduced travel times and increased international trade by providing a shortcut between the oceans.