Singapore Couriers Expand EV Fleets, AI Routes as Fuel Costs Surge

Major logistics providers operating in Singapore and across Asia are accelerating the deployment of electric vehicles and artificial intelligence-driven route optimization to reduce reliance on petrol as fuel costs remain elevated following the outbreak of Middle East conflict on February 28. Delivery companies including FedEx, DHL Express, and J&T Express have implemented green initiatives that combine EV fleet expansion with AI software to map efficient delivery routes, lowering overall fuel and energy consumption. These operational adjustments come as jet fuel prices in the Asia-Pacific region have surged dramatically: pre-conflict prices of approximately US$85 per barrel have climbed to around US$200 per barrel by the end of March, driving corresponding increases in fuel surcharges passed on to customers.

Fuel Price Surge and Surcharge Pass-Through to Customers

The sharp increase in fuel costs has directly translated into higher fuel surcharges for international and express shipments. FedEx’s fuel surcharge index shows kerosene-type jet fuel reaching its highest level for 2026 to date: US$4.073 per gallon for the week of April 13 to April 19, corresponding to an international fuel surcharge of 46.75 percent, compared to US$1.873 per gallon during the week of January 19 to January 25, when the surcharge stood at 28.25 percent. DHL Express reported similar escalation, with fuel surcharges rising from 28.75 percent in February 2026 to 46 percent for the week of April 13 to April 19, and increasing further to 47.75 percent for the week of April 20 to April 26. DHL also reported that fuel rates for its ground fleet increased by 25 percent from January to March 2026. These surcharges, which are adjusted weekly based on global fuel price movements, are borne by customers and added on top of base shipping rates. J&T Express, by contrast, stated as of April 15 that it has not revised local delivery fees, though business customers shipping via air or sea from Singapore must pay fuel surcharges for express packages.

Electric Vehicle Fleet Expansion Across Major Logistics Providers

FedEx Singapore has expanded its EV deployment significantly, with approximately 30 percent of its delivery vehicles now electric following additional EV deployments in the prior year. According to Eric Tan, FedEx Singapore’s managing director, “We have been steadily expanding our fleet in Singapore, where about 30 per cent of our delivery vehicles are now electric, following additional EV deployments last year. This aligns with our global goal of achieving carbon-neutral operations by 2040, which includes electrifying our entire pickup and delivery fleet worldwide.” FedEx operates over 2,000 collection points and more than 1,500 drop-off locations for customers in Singapore, reducing the need for couriers to travel door-to-door for each delivery.

DHL Express operates a commercial fleet of more than 100 electric vans in Singapore, representing over 30 percent of its total ground fleet. The company began converting its ground fleet to EVs for last-mile pickup and deliveries in 2022 to reduce greenhouse gas emissions. DHL has also installed solar panels at its Singapore facilities that generated sufficient electricity in 2025 to cover the annual operational electricity demand of its EV delivery fleet based on consumption figures. Additionally, DHL Express encourages its vendor partners in Singapore to convert to electric vehicles by collectively negotiating preferential lease rates; this initiative resulted in Singapore vendors transitioning 16 diesel vehicles to EVs prior to the Iran war.

J&T Express, which handled 2.77 billion parcels across Southeast Asia in the first quarter of 2026 (January 31 to March 31) — representing 79.9 percent year-over-year growth — is actively exploring further EV adoption. The company stated that it plans to scale its EV fleet progressively as operational conditions and charging infrastructure in Singapore continue to develop. J&T Express also increased its automated sorting lines from 64 to 73 and now operates over 6,000 line-haul vehicles across Southeast Asia, supporting its operational expansion.

Artificial Intelligence Route Optimization and Efficiency Gains

Beyond vehicle electrification, logistics providers are deploying AI software to optimize delivery routes and reduce fuel consumption. J&T Express uses AI to optimize delivery routes and continually reviews delivery network efficiency to reduce unnecessary vehicle run time; EVs are deployed on routes where charging points are more readily available. This AI-driven approach complements its operational scale: the company processed an average daily parcel volume of 30.8 million during Q1 2026.

FedEx recorded strong growth in March 2026 in terms of shipments in Singapore, driven by activities across Asia, the European Union, and trans-Pacific routes. The company manages nearly 700 planes internationally and maintains its Asia-Pacific headquarters and South Pacific regional hub in Singapore. FedEx’s fuel surcharge on international shipments for its aircraft fleet, which has been in place long before the current fuel price crisis, is adjusted according to global fuel price movements and based on a fuel index updated weekly.

Foodpanda, a food and grocery delivery provider, promotes delivery efficiency across its platform to optimize resources. The company uses features such as order stacking, which allows delivery partners to complete multiple orders within a single trip, thereby reducing overall travel distance, time per order, and fuel consumption. Foodpanda stated it is closely monitoring the fuel price situation and will review initiatives to support more efficient and practical deliveries across its platform.

Alternative Transport Methods and Non-Petrol Delivery Solutions

Beyond electrification and route optimization, some logistics providers are expanding non-petrol delivery methods. Foodpanda’s delivery fleet includes bicycles, power-assisted bicycles (which combine pedaling with a rechargeable electric motor), and walking. Delivery partners have full flexibility to choose the transport mode that best fits their individual needs. This diversified approach reduces reliance on any single fuel source and aligns with sustainability goals.

Lalamove, an on-demand logistics provider founded in Hong Kong in 2013, is closely monitoring and evaluating the impact of increased fuel prices on its driver partners and small-to-medium enterprise users. The company stated: “As driver partners are the backbone of our platform, we understand their concerns and will continue to explore possible ways to provide support, while remaining mindful of maintaining flexible, affordable delivery solutions for our SME users to stay afloat during periods of uncertainty.”

Frequently Asked Questions

Q: Why have fuel surcharges for international deliveries increased so dramatically?

Fuel surcharges have risen sharply due to the surge in jet fuel prices following the Middle East conflict that began on February 28. Jet fuel prices in the Asia-Pacific region climbed from approximately US$85 per barrel pre-conflict to around US$200 per barrel by the end of March. Fuel surcharges are adjusted weekly based on global fuel price movements, which explains the rapid escalation from 28.25 percent in late January to 46.75 percent by mid-April for FedEx, and from 28.75 percent in February to 47.75 percent by late April for DHL Express.

Q: What percentage of major delivery company fleets are now electric vehicles?

FedEx and DHL Express both report that approximately 30 percent of their ground delivery fleets in Singapore are now electric vehicles. J&T Express has not disclosed a specific percentage but stated it is actively exploring further EV adoption with plans to scale progressively. Foodpanda uses a diversified fleet including bicycles, power-assisted bicycles, and walking in addition to motorized vehicles.

Q: How are delivery companies using AI to reduce fuel consumption?

Logistics providers such as J&T Express and Foodpanda deploy AI software to optimize delivery routes, reducing unnecessary vehicle run time and travel distances. Foodpanda also uses order-stacking features that allow delivery partners to complete multiple orders in a single trip. These AI-driven efficiencies lower overall fuel and energy consumption while maintaining service levels.