Seventy million years ago where the Republic of Panama is today, there was a gap between the continents of North and South America through which the waters of the Atlantic and Pacific Oceans flowed freely. About 30 million years ago the collision of two tectonic plates of the Earth's crust led to volcanoes that broke the ocean surface and started forming the Isthmus of Panama.
By shutting down the flow of water between the two oceans 10 million years ago, the land bridge re-routed currents in both the Atlantic and Pacific Oceans and had an enormous impact on the Earth?s climate, its physical environment and human evolution.
Today the Isthmus of Panama continues to have an impact on human development and trade. The shipping canal that crosses the isthmus has been expanded to allow for the passage of very large ships. As a result, Panama has become a major logistic hub and the preferred route for ships between the Athlantic and the Pacific Oceans .