Singapore logistics providers, e-commerce platforms use AI tools to cope with holiday demand

SINGAPORE – Online shopping activity and international mail are growing ahead of the year-end holidays, and delivery firms are preparing for yet another peak in parcel volumes this December.

To cope with the surge in demand, they are relying on artificial intelligence-based tools, while e-commerce platforms are running their annual year-end campaigns to draw shoppers.

Delivery vendor DHL Express has an AI-powered robotic arm installed at its sorting facility in Singapore that can sort more than 1,000 small parcels an hour with 99 per cent accuracy.

“Our ongoing investments in robotics and automation are especially vital to support the surge in volume this peak season,” said Mr Christopher Ong, managing director of DHL Express Singapore.

“Our courier’s device also has inbuilt route optimisation intelligence and they can maximise their route productivity and ensure they deliver the parcels to our customers on time.”

Mr Ong said that the company is expecting parcel volumes to grow by about 20 per cent from the previous quarter thanks to the holiday season.

He did not comment on whether DHL Express will increase hiring for the year-end surge.

Fellow delivery company FedEx Singapore also has an AI-powered robotic sortation arm at its South Pacific Regional Hub at Changi Airport.

It can process up to 1,000 packages an hour for deliveries to 100 destinations.

For last-mile delivery, FedEx Singapore’s digital route-planning tools such as its Stop Sequencing Optimiser, which arranges parcel drop-offs in the most efficient order, and its Static Route Optimiser, which maps out optimal delivery routes, help couriers cut travel time.

The company is also using other autonomous solutions from its partners such as robotics start-up QuikBot to support automated deliveries at selected drop-off points.

Guided by AI agents, QuikBot’s robots can navigate lifts and reach individual floors, enabling contactless delivery without human assistance.

FedEx Singapore managing director Eric Tan said the company is also “ramping up temporary manpower for shipment sorting and processing, deploying additional couriers, and adjusting shifts to manage the surge in deliveries”, but he did not elaborate.

According to FedEx’s Asia-Europe Trade report, 34 per cent of Singaporean consumers start their festive shopping in October, followed by 27 per cent in November and 19 per cent in December.

A total of 45 per cent of consumers also plan to shop more online than last year, while 33 per cent expect at least half of their purchases to be digital.

These habits contribute to one of Asia-Pacific’s longest festive shopping windows and place greater demands on retailers and logistics providers, the report noted.

Meanwhile, logistics company Ninja Van said it is seeing an “uplift” in parcel volumes in 2025 than in 2024.

“What’s exciting is that this surge is no longer limited to just e-commerce last-mile – we’re also seeing rising demand across our other verticals such as cold chain and cross-border deliveries,” said Ninja Van Singapore country manager Justina Sim.

Cold chain logistics is a supply chain management system for temperature-sensitive products that must be kept within a specific, low-temperature range.

“Year-end typically marks the busiest season for our cold-chain operations, but even then, the growth this year has been remarkable. We handled five times the cold-chain volume in November 2025 than we did in the same period last year,” said Ms Sim.

She added that for cross-border deliveries, both the Singapore-Philippines and Singapore-Malaysia routes have seen an increase of more than 60 per cent since October, driven by the year-end sales period.

To cope with the demand, Ninja Van has doubled down on its operational readiness, said Ms Sim. The company is developing AI-driven systems to optimise complex multi-driver routes, which will allow each driver to handle more deliveries efficiently.

It is also leveraging AI to build a Telegram bot to automate business-to-business delivery management, and is increasing the frequency of machine maintenance to prevent breakdowns and avoid overworking its equipment.

Ms Sim said Ninja Van will not hire additional staff during this period.

For e-commerce platform Zalora, the rise in demand during the peak period has meant using AI to generate order-volume forecasts and relying on its in-house order warehouse management system.

The system provides real-time data that allows the company to respond quickly to seasonal and operational pressures, including increasing seasonal manpower and rerouting shipments to maintain efficiency across its markets.

Zalora chief operating officer Vykintas Mineikis noted that the company continuously plans and adjusts its operations in its aim to deliver a reliable customer experience through tech solutions such as AI and internal tech systems, especially during peak sales seasons.

“This approach allows us to maintain efficiency for our customers and brand partners, regardless of demand year on year,” he said.

For fellow e-commerce platform Shopee, the 11.11 sales was its biggest online shopping event of the year. It delivered close to one million items by Nov 12, and expects similar momentum during the 12.12 sales.

This demand has also shaped how Shopee prepares for the current peak period.

Its Singapore director Chua Kel Jin pointed to the Shopee supported logistics network, an integrated pool of third-party logistics partners that enables smoother shipment arrangements and more reliable tracking, as well as its Fulfilled by Shopee service, which provides warehousing support.

He added that sellers who self-manage deliveries can tap Shopee’s “Next Day Delivery Programme – 2 Pick-Up” initiative, which offers two daily pick-ups during peak periods.

“With a decade of experience managing year-end demand and close collaboration with our logistics partners, we are well-equipped to ensure a fast and seamless delivery experience for both buyers and sellers throughout the holiday period,” said Mr Chua.