Why was the Panama Canal needed?

The Panama Canal was needed, for it took a long time, and travel was lengthy and costly, as the US fleet had to travel around cape horn when they wanted to go from the west coast to east coast and vice versa. The Panama Canal was needed to shorten the time, distance, and cost that was needed to travel around the bend. Later on, the US used the Panama Canal to make money, as it became more efficient then taking the long way around