The Panama Canal works like a water staircase. Ships don’t sail through at sea level. Locks lift them about 26 meters (85 feet) up to Gatun Lake, an artificial lake in the middle of the country. They cross the lake and then go down through another set of locks to the other ocean. The water that fills the lock chambers flows down from the lake by gravity through big culverts, with no pumps, and a full ocean-to-ocean transit takes about 8 to 10 hours.
Below you’ll find how the locks work step by step, how the old and new locks are different, what ships pay, and where to watch them from as a visitor.
Panama Canal quick facts (2026)
| Length | About 80 km (50 miles), from Panama City on the Pacific to Colón on the Caribbean |
| Height of Gatun Lake | About 26 m (85 ft) above sea level |
| Lock sites | Old locks: Miraflores and Pedro Miguel (Pacific), Gatun (Atlantic). New locks: Cocolí (Pacific), Agua Clara (Atlantic) |
| Transit time | About 8–10 hours through the canal itself |
| Opened | August 15, 1914 (expanded locks opened June 26, 2016) |
| Ships in FY2026 | 13,951 transits (October 2025–September 2026), up 4.1% from the year before |
| Revenue in FY2026 | About $6.6 billion (preliminary) |
| Run by | The Panama Canal Authority (ACP), since the US handed over the canal on December 31, 1999 |
Ship and revenue numbers are from the Panama Canal Authority’s FY2026 report, published in October 2026.
How the Panama Canal locks work, step by step
A lock is a concrete chamber with gates at both ends. Here’s what happens to a ship going from the Pacific to the Caribbean through the original locks:
- The ship enters the first chamber at sea level. In the old locks, electric locomotives called “mules” run on tracks along both walls and keep the ship centered with steel cables. The ship moves under its own power, and the mules guide it.
- The gates behind it close.
- Water flows in from the chamber above. Valves open, and water from the higher level runs down by gravity through huge tunnels (culverts) inside the lock walls. It comes up through holes in the chamber floor and lifts the ship. No pumps are used.
- The gates in front open when the water levels match, and the ship moves up into the next chamber.
- Repeat. Miraflores has two steps and Pedro Miguel has one, so three steps lift the ship to Gatun Lake.
- Cross the lake and the Culebra Cut. The ship sails across Gatun Lake and through the Culebra Cut, the channel dug through the continental divide.
- Go down three steps at Gatun. The process runs in reverse, letting water out to the sea, until the ship reaches Caribbean level.
Every set of old locks is built in pairs, so there are two lanes. In practice, big ships can’t pass each other in the narrow Culebra Cut, so traffic is scheduled to go one way for part of the day and the other way later.
Why does the canal need Gatun Lake?
Gatun Lake is the heart of the canal. American engineers created it by damming the Chagres River at Gatun. That meant they didn’t have to dig a sea-level channel across the whole isthmus, which was what defeated the French.
The lake does two jobs:
- It’s the route. Ships cross about 33 km (21 miles) of it.
- It’s the water supply. Each transit of the old locks sends about 200 million liters (around 50 million gallons) of fresh water out to the sea. The same lake system also supplies drinking water to about half of Panama’s population.
That’s why rain matters so much. During the 2023–2024 drought, the canal cut daily transit slots to as few as 22 (compared with around 36 in normal times) and limited how deep ships could sit in the water. In November 2023, one LPG tanker operator paid a record of about $4 million in an auction just to secure a transit slot, on top of the toll. To protect future water supply, the ACP is planning a new reservoir on the Río Indio. As of 2026, it’s in the design and environmental review stage, with operations expected around 2031.
Old locks vs. new Neopanamax locks
| Original locks (1914) | Neopanamax locks (2016) | |
|---|---|---|
| Locations | Miraflores, Pedro Miguel, Gatun | Cocolí, Agua Clara |
| Chamber size | About 305 m × 33.5 m (1,000 × 110 ft) | About 427 m × 55 m (1,400 × 180 ft) |
| Largest ship | “Panamax”: about 294 m long, 32.3 m wide | “Neopanamax”: about 366 m long, 51 m wide |
| Container capacity | Around 5,000 TEU | Around 14,000+ TEU |
| Gates | Swinging miter gates | Sliding (rolling) gates |
| Ship positioning | Electric locomotives (“mules”) | Tugboats |
| Water use | All lock water goes to the sea | Water-saving basins reuse about 60% of the water |
Panama voters approved the expansion in a 2006 referendum. Work started in 2007, and the new locks opened on June 26, 2016, at a cost of more than $5 billion. As of FY2026, ships using the Neopanamax locks carry just over half of all canal tonnage.
Ship designers build to these limits. “Panamax” and “Neopanamax” are standard size classes in the shipping world.
How long does it take to cross the Panama Canal?
The transit itself takes about 8 to 10 hours. Total time in canal waters is often longer, because ships may wait at anchor for their scheduled slot. Each ship has to take on a Panama Canal pilot, who takes control for the transit.
Cruise ships do it too, and many Caribbean cruises do a “partial transit”: they go into Gatun Lake through the Gatun or Agua Clara locks and come back out the same way.
How much does it cost a ship to use the Panama Canal?
Tolls depend on the ship type, its size and its cargo, and they change over time. Small sailboats pay a few thousand dollars, and the largest Neopanamax container ships and gas carriers can pay several hundred thousand dollars or more per transit. The canal also auctions extra slots when demand is high. The ACP publishes its current toll tables on pancanal.com.
Famous toll records:
- Lowest: 36 cents, paid by adventure writer Richard Halliburton, who swam the canal in 1928. The toll was based on his weight.
- Highest slot price: about $3.98 million, paid in an auction in November 2023 during the drought, on top of normal fees.
Where can you see the ships as a visitor?
| Place | What you see | Adult ticket, non-resident (2026) | Hours |
|---|---|---|---|
| Miraflores Visitor Center (20 min from Panama City) | Old locks up close from viewing terraces, museum, IMAX film | $17.22 (ages 6–12: $7.22) | Daily 8 a.m.–6 p.m., tickets until 5 p.m. |
| Agua Clara Visitor Center (near Colón) | Neopanamax locks and Gatun Lake | $10 (ages 6–12: $5) | Daily 8 a.m.–4 p.m., tickets until 3:30 p.m. |
Prices are from visitcanaldepanama.com as of October 2026. Kids under 6 get in free. Panama uses the US dollar, so B/. prices are the same in dollars.
Tips for visiting:
- Ships don’t run on a fixed public timetable. At Miraflores, ships from the Pacific usually go up in the morning, and northbound/southbound traffic switches later in the day. Ask at the ticket office when the next big ship is expected.
- Go early on weekdays to avoid crowds, and bring water and sun protection.
- For a full or partial transit on a tour boat, book with a licensed operator. Prices vary, so check current offers.
- Combine Agua Clara with the forts at Portobelo and San Lorenzo, or with a boat trip on Gatun Lake. Our Colón guide covers the area.
- For rainforest close to the canal, see Gamboa and the Canal Zone.
Panama Canal history in brief
- 1534: Spanish King Charles V orders a survey for a route across the isthmus.
- 1855: The Panama Railroad opens. It was built by a US company, and thousands of workers, including Chinese, Irish and West Indian laborers, died building it.
- 1881–1889: The French, led by Ferdinand de Lesseps of Suez Canal fame, try to dig a sea-level canal. Yellow fever, malaria, landslides and money problems end the project. The French effort cost an estimated 20,000+ lives.
- 1903: Panama separates from Colombia with US support. A treaty gives the US control of a Canal Zone for $10 million plus an annual payment.
- 1904: The US buys the French assets for $40 million and starts work. Chief engineer John Stevens and later George Goethals switch to a lock-and-lake design. Dr. William Gorgas leads mosquito control against yellow fever and malaria.
- August 15, 1914: The SS Ancon makes the first official transit. The US construction cost about $375 million, and more than 5,600 workers died during the American period.
- 1977: The Torrijos–Carter Treaties agree to hand the canal to Panama.
- December 31, 1999: Panama takes full control.
- 2016: The expanded Neopanamax locks open.
Panama Canal facts people ask about
- Distance saved: a ship going from New York to San Francisco saves about 8,000 nautical miles compared with sailing around Cape Horn.
- Direction: because of the shape of the isthmus, ships going from the Atlantic to the Pacific actually head southeast. The Pacific entrance is east of the Caribbean one.
- Gates: the old locks’ steel miter gates are about 2 m (7 ft) thick. The largest leaves weigh around 700 tons each, and they’re hollow so they partly float, which makes them easier to swing.
- Electricity: the original locks were powered by hydroelectricity from the Gatun Dam.
FAQ
Does the Panama Canal use pumps?
No. Water moves through the locks by gravity alone, from Gatun Lake down to the chambers and out to the sea.
Why wasn’t the Panama Canal built at sea level?
The French tried and failed. Digging through the mountains of the continental divide down to sea level, while controlling the flood-prone Chagres River, was beyond what they could do. A lake with locks needed far less digging.
Who owns the Panama Canal?
Panama. The canal is run by the Panama Canal Authority, an autonomous government agency, and it’s been fully Panamanian since December 31, 1999.
Can you go through the Panama Canal as a tourist?
Yes. Tour boats from Panama City offer partial and full transits on certain days, and many cruise lines include the canal. You can also watch from the Miraflores and Agua Clara visitor centers.
How many ships pass through the Panama Canal each day?
About 38 on average in FY2026 (13,951 transits in the year). The number depends on water levels and demand.
Planning a trip? See our list of the best things to do in Panama beyond the canal.