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

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 the12.12 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.