Singapore logistics providers, e-commerce platforms use AI tools to cope with holiday demand
The article from The Straits Times details how Singapore’s logistics and e-commerce sectors are leveraging artificial intelligence and automation to manage the massive surge in parcel volumes during the 2025 year-end holiday season.
1. AI-Powered Logistics & Robotics
Major delivery firms are using automation to handle the expected 20% increase in quarterly parcel volumes:
DHL Express: Has deployed an AI-powered robotic arm in Singapore capable of sorting over 1,000 parcels per hour with 99% accuracy. They are also using AI for "route optimization" to help couriers maximize productivity.
FedEx Singapore: Uses a similar robotic sortation arm at Changi Airport and digital tools like the Stop Sequencing Optimizer to plan the most efficient delivery routes.
QuikBot Collaboration: FedEx is partnering with robotics start-up QuikBot to use autonomous robots that can navigate elevators and deliver directly to office floors or drop-off points.
2. Growth in Specialized Deliveries
Ninja Van: Reported a significant rise in demand beyond standard e-commerce, specifically in cold-chain logistics (temperature-sensitive goods), which saw a five-fold increase in volume compared to last year.
Cross-Border Trends: Deliveries between Singapore, the Philippines, and Malaysia have jumped by over 60% since October.
3. E-commerce Platform Strategies
Zalora: Uses AI to generate highly accurate order-volume forecasts, allowing them to adjust seasonal manpower and reroute shipments in real-time.
Shopee: Following a record-breaking 11.11 sale (delivering nearly 1 million items in one day), Shopee is utilizing its integrated logistics network and "Next Day Delivery" programs to ensure speed during the 12.12 and Christmas periods.
4. Changing Consumer Behavior
A FedEx report highlights that Singaporeans are shopping earlier and more digitally:
34% start festive shopping as early as October.
45% plan to shop more online than in previous years.
33% expect at least half of their total holiday purchases to be made digitally.
5. Labor Strategy
Interestingly, while FedEx is ramping up temporary manpower to assist with the surge, Ninja Van and DHL Express(the latter of which declined to comment on specific hiring numbers) are leaning more heavily into AI and machine maintenance to increase efficiency without necessarily adding more permanent staff.