How did the Panama Canal reduce the importance of the Strait of Magellan as a trade route?

The Strait of Magellan, discovered by Ferdinand Magellan in 1520, served as a vital maritime passage between the Atlantic and Pacific oceans for centuries. However, its importance as a primary trade route declined significantly following the completion of the Panama Canal in 1914.12

The canal drastically reduced the necessity of navigating the long and perilous journey around the southern tip of South America. For example, a voyage between San Francisco and New York City that spanned approximately 13,000 miles when traveling around South America was reduced to about 5,200 miles via the canal. By shortening the passage between the two oceans by several thousand miles, the Panama Canal provided a much faster and more efficient alternative for global shipping, effectively bypassing the need for vessels to traverse the tortuous and weather-prone Strait of Magellan.432