Commercial Importance of Suez Canal: 

Commercial importance of Suez Canal is described as given below:

1. Suez Canal offers ships the shortest routes between Europe and Asia. Using this route, the distance between Liverpool and Colombo of about 1600 km is saved in comparison to the Cape of Good Hope route. 

2. This canal provides a new route in Indian Ocean to Europe. 

3. The business relations between Europe and Asia have become much stronger due to this route. 

4. This route provides cheap, speedy and unobstructed transportation that reduces the price of goods. 

5. This canal route passes through the most densely populated areas and provides transportation facilities to large populations. 

6. The western countries export machinery, clothing, medicines, chemicals, etc. to eastern countries and import raw materials like jute, wheat, silk, tea, coconut, wool, meat, tin, rubber, etc. 

7. There are several ports situated on this route. 

8. This route is situated at the center of three continents of Europe, Africa, and Asia, so this route provides an easy and comfortable transportation facility to these continents.

Commercial Importance of Panama Canal:

1. Panama Canal is situated in Panama in central America. The Panama Canal was built to shorten the distance between Atlantic and Pacific Ocean. 

2. This canal has reduced the distance between San Francisco and New Orleans by 9000 1 km, and also between New York and Valparaiso (Chile) by about 6500 1 cm. 

3. The USA gets the most benefits from this route. It has reduced the ditance between the western and north – east America and other countries like Australia, New Zealand and Japan. 

4. This canal has made a rapid increase in trade and business among the coastal countries situated on Atlantic and Pacific Ocean. 

5. Although in comparison of Suez Canal, its business importance is less, yet it has a great importance in the South American economy. 

6. Via this canal, petrol from California, soda and copper from Chile, tea and silk from China, meat, butter, cheese and leather from New Zealand, ready made products, medicines, clothes, machinery, etc. are transported to the continental countries.