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Why is the Panama Canal located where it is?
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So that people don't have to sail all the way around South America. It's a short cut.
Just adding to JaclynElaina's answer (which is right), it's also at the narrowest point between the two oceans making it a prime spot for building the canal. Even so, it took years to actually get it done. The Suez Canal between the Mediterranean and the Red Sea also does the same thing so ships don't have to sail around Africa!
^^^ all de above :)
its a short cut to get to the other ocean faster for shipping and for war ships.
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