are the latest shipping companies to abandon the red sea area. the suez canal handles more than a tenth of the world s trade, but it s particularly vital for the movement of goods between asia and europe. the alternative is a long and expensive detour around the cape of good hope at africa s southern tip. because of the disruption, the cost to ship a container from china to the mediterranean has risen 44% this month alone. that s according to the online shipping marketplace, freightos. swedish homewares giant, ikea, is just one of the companies now warning of delays and possible availability issues for some of its products. shops in europe are already well stocked for christmas, but logistics experts warn there could be shortages in the new year if the crisis continues. we ll hearfrom one of the shipping companies in the moment, but first, let s get the background from our analysis editor, ros atkins. on the 19th of november, houthi rebels from yemen was an attack on the red
longerjourney around rerouting to take the much longer journey around the southern tip of africa. appliance company electrolux is also setting up a taskforce to find alternate routes while ikea is warning of potential product shortages. rain peterson from the supply chain management company flexible told me more about how the disruption is already impacting businesses. it’s disruption is already impacting businesses. businesses. it s ust getting started. 0ver businesses. it sjust getting started. over the businesses. it sjust getting started. over the weekend | businesses. it sjust getting i started. over the weekend and through today we have had all ten of the top container shipping lanes in the world, representing about 95% capacity, have begun to divert vessels to avoid sailing through the red sea and to go around the tip of africa, as you said. it takes about 25% longer to go that way from asia to europe and, well, 25% reduction in supply of shipping, we re going t
appliance company electrolux is setting up a task force to find alternative routes while ikea is warning of potential product shortages. ryan petersen from the supply chain management company flexport told me more about how the disruption is already impacting business. it s just getting started, but over the weekend and through today, we ve had all ten of the top container shipping lines in the world represented about 95% capacity have begun delivered vessels to avoid salem to the red sea and to go around the tip of africa, as you said. it takes about 25% longer to go that way, from asia to europe, and it went reduction in the supply of shipping, we are going to see huge delays, obviously, but also big price increases, because its supply and demand, and if the supply comes down .5%, one thing we ve learned last few years is a small disruption in supply can lead to a huge swing in price. indeed, we are seeing an impact on oil prices as well there. the united states planning to
Now on bbc news, all the latest Business News live from singapore. America first or made in india . Well trump hails Narendra Modi for boosting the economy, there are several thorny issues which could make foran several thorny issues which could make for an uncomfortable visit. And as we mark the 20th Anniversary of the Asian Financial turmoil, we met with South Koreans who sacrifices we re with South Koreans who sacrifices were worth their weight in gold. Whose sacrifices. Good morning asia, hello world. It is a tuesday. Glad you could join us for this edition of Asia Business report. I am rico hizon and as we recorded on newsday, Narendra Modi hasjust met hizon and as we recorded on newsday, Narendra Modi has just met with donald trump at the white house. Both men portray themselves as outsiders and promised to bring back jobs during their campaigns. President trump had this to say about his counterpart. Thank you very much. It is a great honour to have Prime Minister Narendra Modi o
To the us for experimental drug treatment. Now on bbc news, all the latest Business News live from singapore. China paints a green path for electric car technology, is the rest of the world willing to follow . And Women In India are fighting a taxing battle when it comes to personal hygiene products. Hello, asia. Good morning, world glad you could join us for this edition of Asia Business report, im rico hizon. China has a growing appetite for electric cars, sales there overtook the us last year and there overtook the us last year and the worlds biggest Car Manufacturers are paying attention. Of all though, owned by a chinese company, announced last week it will only make fully electric or hybrid vehicles by 2019 volvo. Tesla is close to locking in a deal to open its First Factory on the mainland. Automotive analyst bill russo believes all carmakers will follow suit in the not too distant future. Its been a good run. Its been 130 yea rs its been a good run. Its been 130 years since the