SINGAPORE: After suddenly losing his job during a retrenchment exercise at South Korean firm CJ Logistics Asia that began earlier this month, finding work again is proving difficult for one middle-aged Singaporean.
He has sent out more than 20 job applications for roles similar to his past work scope in an information technology department, including those outside the industry. Despite more than a decade of work experience in the logistics sector, logistics firms do not seem to be hiring at the moment.
"No high hopes there," he said of his job seeking journey. "Like most Singaporeans after being retrenched at a certain age, the most likely path (for me) will be a private-hire driver."
The man declined to be named in order to not affect his chances at a new job.
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Under pressure by the ongoing energy crisis that is driving up fuel prices and operational costs, some logistics companies told CNA that they are mulling cost-cutting moves given the industry's heavy reliance on diesel.
Earlier this year, CJ Logistics Asia began retrenching 33 employees as it had been operating under "significant financial pressure" due to a drop in revenue and decided to downsize its manpower to cut costs, according to a letter seen by CNA.
A unit under multinational logistics company DHL, DHL Global Forwarding Singapore, also laid off three employees in a recent exercise in late March.
CEO of DHL Global Forwarding Singapore, Malaysia and Indonesia Praveen Gregory told CNA that the retrenchment was part of a broader, forward-looking restructuring to ensure the long-term sustainability and competitiveness of the business and "therefore, not related to any other factors".
Others have also implemented fuel surcharges, passing the buck on to businesses and consumers that rely on their services.
Responding to CNA's queries, the Supply Chain Employees' Union's (SCEU) executive secretary Nur Azarudin Putra said there are "early indications of pressure" in Singapore's supply chain ecosystem, which include longer payment cycles, tighter credit conditions affecting small- and medium-sized enterprises (SMEs), and hiring freezes for professionals, managers and executives and support functions.
There appear to be no widespread retrenchments at this stage and "the sector is facing emerging adjustment pressures rather than an immediate crisis", he said.
Nevertheless, cost pressures appear to be more structural and workforce impact may surface later if conditions persist, added Mr Nur Azarudin Putra.
But there is also a silver lining for some businesses. Prior to the outbreak of war in the Middle East, a handful of firms had made an early leap to electrify their fleet of delivery vehicles.
Instead of belt-tightening measures, firms like Loft Logistics are eyeing manpower expansions.
"No impact," said Loft's co-founder Daryl Chan when asked about how the business is coping with the surge in diesel prices.
"We are a little more fortunate in that our delivery vehicles are EVs," he said. "We have no plans for layoffs and are actively looking to increase headcount."
Speaking to CNA, four logistics firms said they were directly affected by the diesel spike with expenses rising by as much as two to three times, but there are no plans for any retrenchment so far.
Supply chain solutions company YCH Group's head of strategy, sustainability and communications Yap Kwong Weng said the firm has not carried out retrenchments in response to higher diesel prices or contract fluctuations, and is not considering layoffs at this time.
Hiring freezes or reduced working hours have also not been implemented, he added.
"As a matter of principle, retrenchment is always a last resort for YCH," said Dr Yap, who is also CEO of Vietnam SuperPort, a logistics port developed as part of a joint venture between YCH Group and T&T Group, a multi-industry economic group in Vietnam.
"Before considering such steps, we prioritise alternative measures such as reducing reliance on outsourced contractors, tightening non-essential expenditure, and implementing flexible wage or other cost-management initiatives," he added.
That said, if there is a sharp and prolonged decline in cargo and transaction volumes in the range of 40 per cent to 50 per cent, the company would then need to review additional manpower measures and adapt its business strategies, said Dr Yap.
TSL Logistics was likewise not actively considering layoffs, but has taken on a more "measured approach", said managing director Alan Tay.
The firm has begun tightening hiring, prioritising only essential roles, and raising productivity expectations across teams. It is also reviewing costs across departments to improve efficiency, said Mr Tay.
"Workforce adjustments would only be considered under sustained and significant deterioration in business conditions, such as prolonged fuel price escalation combined with a substantial and persistent decline in demand.
"At present, we are not at that stage," said Mr Tay.
Pacific Logistics Group (PLG) also does not foresee reducing its workforce, said its commercial director Edwin Lim. Instead, the company will be diversifying its business streams by strengthening its warehouse capabilities and expanding services to boost its portfolio.
It is also raising the skills and productivity of workers through training and development courses.
"The company remains committed to hiring, while managing costs prudently," said Mr Lim. This includes bringing in interns and students in work-study programmes to develop future talent, he added.
Singapore Logistics Association chairman Dave Ng told CNA there was no clear sign of broad-based retrenchment across the logistics sector at the moment.
Still, he noted that the operating environment has become more challenging for the industry, with cost pressures arising from fuel, electricity, materials and other business expenses.
"While companies continue to manage through cost controls and operational adjustments, prolonged increases across these areas may place greater strain on SMEs, especially those operating on tighter margins," said Mr Ng.
Support measures that can help affected businesses manage these pressures would be useful in sustaining operations, he added.
Earlier in April, the Singapore government announced initiatives to help businesses affected by the Middle East crisis. This includes increasing the corporate income tax rebate for the Year of Assessment 2026 to 50 per cent from 40 per cent.
The Energy Efficiency Grant - a subsidy for businesses to purchase energy-saving equipment - will be extended to all sectors for another year, to Mar 31, 2028.
Meanwhile, two logistics firms that have shifted to EVs are expanding their headcount, though the economic outlook is still a concern.
Loft Logistics' Mr Chan said the firm's fleet of vehicles are electrically powered and thus has not been affected by the diesel surge.
The company, which provides e-commerce logistics services and last-mile deliveries in Southeast Asia, told CNA that it is looking to hire more people to cope with growing enquiries from overseas firms looking to set up headquarters in Singapore.
But inbound shipments to its warehouse have dipped slightly as customers have cut volumes owing to the higher air and sea carrier rates, as well as fuel charges, said Mr Chan.
Asked about the chance that electricity prices could also surge, the co-founder said Loft Logistics has hedged against such price volatility by installing solar panels at its warehouse.
The prospect of higher electricity prices has even presented opportunities, with more SMEs enquiring about the company's services as they anticipate higher warehousing costs at facilities without solar panels, said Mr Chan.
SFS Pharma Logistics, which transports temperature-sensitive pharmaceutical shipments, said it also uses solar energy at its facility but has observed a 5 per cent increase in electricity bills.
Asked how the firm is handling the increased costs, group CEO Roger Chew said: "Have to absorb or risk losing the business to competitors. The customers are not sharing the increase."
Like Loft Logistics, it had previously switched its internal combustion engine vehicles to EVs, and has increased its staff numbers in spite of the economic situation.
It hired two full-timers at the start of April and took in four interns who will be with the firm until early June. The company is also planning to hire one more full-time driver to address its "immediate needs", said Mr Chew.
Despite switching to an EV fleet, the company was still exposed to higher diesel costs as the firm outsources drivers who operate fuel-based vehicles to cover delivery points its own fleet cannot manage.
SFS Pharma Logistics now pays the drivers 15 per cent more so they can cope with the higher fuel prices.
DHL said in response to CNA that
DHL Express Singapore currently operates a large commercial fleet of electric vans, with 100 EVs making up over 30 per cent of the total ground fleet, said Mr Gregory.
Solar panels installed at DHL facilities in Singapore generated enough electricity in 2025 to cover the EV delivery fleet's annual operational electricity demand based on consumption figures, he added.
For YCH Group, the firm deployed its first electric prime mover in 2024 and has since expanded its electric fleet. It has pledged to transition 100 per cent of its owned and long-term leased high-emissions road fleet to low-emissions vehicles by 2040.
He added that the company will keep investing in green technologies and operational innovations to reduce environmental impact and strengthen its logistics network.
"This strategy is not a short-term response to fluctuations in diesel prices," said Dr Yap.
Continue reading...
He has sent out more than 20 job applications for roles similar to his past work scope in an information technology department, including those outside the industry. Despite more than a decade of work experience in the logistics sector, logistics firms do not seem to be hiring at the moment.
"No high hopes there," he said of his job seeking journey. "Like most Singaporeans after being retrenched at a certain age, the most likely path (for me) will be a private-hire driver."
The man declined to be named in order to not affect his chances at a new job.
CNA Games
Show More Show Less
Under pressure by the ongoing energy crisis that is driving up fuel prices and operational costs, some logistics companies told CNA that they are mulling cost-cutting moves given the industry's heavy reliance on diesel.
Earlier this year, CJ Logistics Asia began retrenching 33 employees as it had been operating under "significant financial pressure" due to a drop in revenue and decided to downsize its manpower to cut costs, according to a letter seen by CNA.
A unit under multinational logistics company DHL, DHL Global Forwarding Singapore, also laid off three employees in a recent exercise in late March.
CEO of DHL Global Forwarding Singapore, Malaysia and Indonesia Praveen Gregory told CNA that the retrenchment was part of a broader, forward-looking restructuring to ensure the long-term sustainability and competitiveness of the business and "therefore, not related to any other factors".
Others have also implemented fuel surcharges, passing the buck on to businesses and consumers that rely on their services.
Responding to CNA's queries, the Supply Chain Employees' Union's (SCEU) executive secretary Nur Azarudin Putra said there are "early indications of pressure" in Singapore's supply chain ecosystem, which include longer payment cycles, tighter credit conditions affecting small- and medium-sized enterprises (SMEs), and hiring freezes for professionals, managers and executives and support functions.
There appear to be no widespread retrenchments at this stage and "the sector is facing emerging adjustment pressures rather than an immediate crisis", he said.
Nevertheless, cost pressures appear to be more structural and workforce impact may surface later if conditions persist, added Mr Nur Azarudin Putra.
But there is also a silver lining for some businesses. Prior to the outbreak of war in the Middle East, a handful of firms had made an early leap to electrify their fleet of delivery vehicles.
Instead of belt-tightening measures, firms like Loft Logistics are eyeing manpower expansions.
"No impact," said Loft's co-founder Daryl Chan when asked about how the business is coping with the surge in diesel prices.
"We are a little more fortunate in that our delivery vehicles are EVs," he said. "We have no plans for layoffs and are actively looking to increase headcount."
NO LAYOFFS FOR NOW
Speaking to CNA, four logistics firms said they were directly affected by the diesel spike with expenses rising by as much as two to three times, but there are no plans for any retrenchment so far.
Related:
Supply chain solutions company YCH Group's head of strategy, sustainability and communications Yap Kwong Weng said the firm has not carried out retrenchments in response to higher diesel prices or contract fluctuations, and is not considering layoffs at this time.
Hiring freezes or reduced working hours have also not been implemented, he added.
"As a matter of principle, retrenchment is always a last resort for YCH," said Dr Yap, who is also CEO of Vietnam SuperPort, a logistics port developed as part of a joint venture between YCH Group and T&T Group, a multi-industry economic group in Vietnam.
"Before considering such steps, we prioritise alternative measures such as reducing reliance on outsourced contractors, tightening non-essential expenditure, and implementing flexible wage or other cost-management initiatives," he added.
That said, if there is a sharp and prolonged decline in cargo and transaction volumes in the range of 40 per cent to 50 per cent, the company would then need to review additional manpower measures and adapt its business strategies, said Dr Yap.
TSL Logistics was likewise not actively considering layoffs, but has taken on a more "measured approach", said managing director Alan Tay.
The firm has begun tightening hiring, prioritising only essential roles, and raising productivity expectations across teams. It is also reviewing costs across departments to improve efficiency, said Mr Tay.
"Workforce adjustments would only be considered under sustained and significant deterioration in business conditions, such as prolonged fuel price escalation combined with a substantial and persistent decline in demand.
"At present, we are not at that stage," said Mr Tay.
Pacific Logistics Group (PLG) also does not foresee reducing its workforce, said its commercial director Edwin Lim. Instead, the company will be diversifying its business streams by strengthening its warehouse capabilities and expanding services to boost its portfolio.
It is also raising the skills and productivity of workers through training and development courses.
"The company remains committed to hiring, while managing costs prudently," said Mr Lim. This includes bringing in interns and students in work-study programmes to develop future talent, he added.
Singapore Logistics Association chairman Dave Ng told CNA there was no clear sign of broad-based retrenchment across the logistics sector at the moment.
Still, he noted that the operating environment has become more challenging for the industry, with cost pressures arising from fuel, electricity, materials and other business expenses.
"While companies continue to manage through cost controls and operational adjustments, prolonged increases across these areas may place greater strain on SMEs, especially those operating on tighter margins," said Mr Ng.
Support measures that can help affected businesses manage these pressures would be useful in sustaining operations, he added.
Earlier in April, the Singapore government announced initiatives to help businesses affected by the Middle East crisis. This includes increasing the corporate income tax rebate for the Year of Assessment 2026 to 50 per cent from 40 per cent.
The Energy Efficiency Grant - a subsidy for businesses to purchase energy-saving equipment - will be extended to all sectors for another year, to Mar 31, 2028.
Related:
LOGISTICS FIRMS WITH ELECTRIC FLEETS
Meanwhile, two logistics firms that have shifted to EVs are expanding their headcount, though the economic outlook is still a concern.
Loft Logistics' Mr Chan said the firm's fleet of vehicles are electrically powered and thus has not been affected by the diesel surge.
The company, which provides e-commerce logistics services and last-mile deliveries in Southeast Asia, told CNA that it is looking to hire more people to cope with growing enquiries from overseas firms looking to set up headquarters in Singapore.
But inbound shipments to its warehouse have dipped slightly as customers have cut volumes owing to the higher air and sea carrier rates, as well as fuel charges, said Mr Chan.
Asked about the chance that electricity prices could also surge, the co-founder said Loft Logistics has hedged against such price volatility by installing solar panels at its warehouse.
The prospect of higher electricity prices has even presented opportunities, with more SMEs enquiring about the company's services as they anticipate higher warehousing costs at facilities without solar panels, said Mr Chan.
SFS Pharma Logistics, which transports temperature-sensitive pharmaceutical shipments, said it also uses solar energy at its facility but has observed a 5 per cent increase in electricity bills.
Asked how the firm is handling the increased costs, group CEO Roger Chew said: "Have to absorb or risk losing the business to competitors. The customers are not sharing the increase."
Like Loft Logistics, it had previously switched its internal combustion engine vehicles to EVs, and has increased its staff numbers in spite of the economic situation.
It hired two full-timers at the start of April and took in four interns who will be with the firm until early June. The company is also planning to hire one more full-time driver to address its "immediate needs", said Mr Chew.
Despite switching to an EV fleet, the company was still exposed to higher diesel costs as the firm outsources drivers who operate fuel-based vehicles to cover delivery points its own fleet cannot manage.
SFS Pharma Logistics now pays the drivers 15 per cent more so they can cope with the higher fuel prices.
DHL said in response to CNA that
DHL Express Singapore currently operates a large commercial fleet of electric vans, with 100 EVs making up over 30 per cent of the total ground fleet, said Mr Gregory.
Solar panels installed at DHL facilities in Singapore generated enough electricity in 2025 to cover the EV delivery fleet's annual operational electricity demand based on consumption figures, he added.
For YCH Group, the firm deployed its first electric prime mover in 2024 and has since expanded its electric fleet. It has pledged to transition 100 per cent of its owned and long-term leased high-emissions road fleet to low-emissions vehicles by 2040.
He added that the company will keep investing in green technologies and operational innovations to reduce environmental impact and strengthen its logistics network.
"This strategy is not a short-term response to fluctuations in diesel prices," said Dr Yap.
Continue reading...