What Type Of Courier Should You Work With?

There are several types of couriers in Singapore, namely local ones such as Regent, international ones such as Fedex and state ones such as Speedpost. With these 3 main types of courier companies you can work with, you need to figure out which Singapore local courier service is most suitable for your needs.

  1. Let us first talk about the local courier companies such as PCA Masters, Ixpress647 e.t.c. These are basically local and private companies which operate islandwide and usually have a mixture of contractors as well as full time employees in the company and deal with both regular as well as ad hoc courier services. The services provided by such private companies usually involve pick up from your specified location and delivery to the intended recipient himself or herself only. It is basically a concierge level service where you wouldn’t need to leave your location at all.
  2. When it comes to the international companies like Fedex, they actually deal mostly with international deliveries. If you need a delivery to a recipient in another country, you’re best off working directly with such an international freight company like Fedex or DHL. This is because even if you were to work with a local forwarder in Singapore, they will still pass the items to Fedex or DHL in the end, resulting in only more hassles, change of hands for your item and potentially cost.
  3. Speedpost is a cost efficient delivery, but like as I mentioned, it’s more of a very basic drop off at their location and they will deliver within a few days. It is one of the slowest form of deliveries. Think about it, if I can deliver an item within a few days, why should I deliver it through Speedpost? I’ll just deliver it myself! However, if I need something delivered urgently on the same day to another location in Singapore, then I would need it to be performed speedily – both of which Speedpost is incapable of. Therefore, I don’t use Speedpost anymore.

 

Different Types of Courier Services In Singapore

There are various types of courier services you can order in Singapore, and they range from the type of delivery to the time frame of the delivery. Let us first talk about the different types of delivery with respect to different types of items.

Most courier companies will either separate parcel and document or separate deliveries by those which require vans versus bikes. This is because most documents can be transported and delivered by a courier who is riding a bike, but for parcels above a certain size, the only type of vehicle which can transport it effectively are vans. Additionally, something you might want to note about van deliveries is that they are generally more expensive than that of bike deliveries. This is because the leasing costs, petrol costs, CBD charges as well as road tax is much more expensive for a van. Bikes are cheap to purchase or lease and hence the savings can be further passed on to end consumers – a.k.a. you.

Next of all, most courier companies in Singapore like PCA Masters Singapore or Network Courier also provide deliveries with different urgency requirements.

The most common type of delivery which companies like PCA Masters and Network Courier provide customers is the same day delivery, which is a courier service where they will pick up the item from the customer anytime and have it delivered before 6pm on the same working day. This is usually the most basic level of courier service you can order.

The next common type of courier service, which is usually an upgrade is actually timeslot deliveries (e.g. you need the person to pick up and deliver only during certain timings). There would usually be a tiny surcharge for this.

There will also be urgent delivery services. This is usually the most premium version of courier service that you can possibly upgrade to. The pick up and delivery of the item you are requesting courier services for will be completed within 1 to 2 hours.

Courier industry in Singapore

Courier industry, as mentioned in my previous post, is growing in Singapore. This is mainly due to the growing E-Commerce businesses in Singapore. The courier industry is benefiting directly from the growth of E-Commerce companies. As many E-Commerce businesses outsource their logistics services to the logistics companies in Singapore, logistics companies enjoy high delivery volume, netting a good revenue.

Apart from E-Commerce companies, many corporations in Singapore are also looking at outsourcing their logistics operations in Singapore. This include document deliveries. There is a sizable demand for document deliveries within the Central Business District of Singapore. Many banks, multi-national corporations (MNCs), and local companies require this document deliveries service to send and receive documents to and from their customers. This is a great service which is value for money in their eyes. These executives are busy and cannot make the trip down to deliver the documents themselves. By spending a small amount of money to get the job done, it’s a good deal to them. Moreover, the volume of the document deliveries for one company may not be high enough to justify the hiring of a personal courier for the company. Hence, many companies will just outsource document deliveries from reputable logistics companies in Singapore.

Parcel deliveries by non E-Commerce and individuals are also in demand. The same logic works for parcel delivery – if you find that it is better to spend a small amount of money to get your parcel delivered so that you can use the time to do your own things, then probably you should have your parcel(s) couriered in Singapore. The price of parcel delivery in Singapore is quite affordable – starting from as low as $5. The distance and weight of the parcel will contribute to the price of the delivery. Most of the time, it does make sense to get your parcels couriered by a courier company in Singapore. If you urgently need to send out an item, you can compare the cab fare with the parcel delivery fee. If the parcel delivery fee is same or lower than the cab fare, then it is a no-brainer – go for the parcel delivery. You save both time and money!

Courier industry in Singapore is a very stable market which has a good growth rate. Competition is rather strong and companies need to innovate and bring out more value to customers. Staying the same over time will lose out. Overall, I feel that courier industry in Singapore is growing well and provides great value to people!

Prospect of Singapore’s logistics industry

Singapore is well known to possess one of the busiest ports in the world. This in turn has led to an abundance of international maritime trades brought into Singapore. Many ships from the western countries in Europe and Americas stopped over at Singapore’s port for refueling before they continue their journey to other Asian countries. Some ships even unload all their containers at Singapore’s port and segment their containers into different destination countries in Asia. After which, they will engage third party sea freight to transport the containers to the respective countries. This has resulted in a lot of sea freight business for companies situated in Singapore.

These sea freight businesses make up part of Singapore’s logistics industry.

Next, there is also a huge land-based logistics industry in Singapore too, in particular the heavy machinery land-based logistics. Heavy machinery land-based logistics is supporting major companies and business activities in Singapore. For instance, huge machinery is needed to carry out big scale logistics activities such as moving of containers at ports. Real estate construction is also one area where these heavy machinery are needed to carry huge building materials around. Heavy duty logistics services are also required by manufacturing companies to transport mainly the raw materials to their factories.

Apart from heavy machinery logistics, there is also a sizable market specializing in small and medium size goods transportation. These transportation are typically carried out by cars, vans, motorbikes and lorries. As E-Commerce businesses grow in Singapore, the logistics market for this sector will definitely continue to grow. There is a growing demand for logistics service to transport these small and medium sized items. Many E-Commerce business owners outsource their logistics operations to third party logistics companies. These logistics companies will be able to offer a good rate due to the volume they are getting. The individual companies’ volume will pale in comparison to these logistics companies’ volume.

Finally, we have the air logistics services. Air logistics services are not offered by many Singaporean companies in the Singapore market. It is one area which is dominated by international air logistics players such as FedEx and DHL. These large corporations have huge network and tie up with lots of airlines around the world. Besides, they have existing infrastructure and huge volume that allow them to offer low price to customers. There is a huge barrier to entry to new start-ups in the air logistics service industry.

Logistics Companies In Singapore

Although there are lots of courier companies in Singapore, there are only really a few truly respectable and trustworthy ones. Here are some of them.

1. PCA Masters

A young but fast growing courier company in Singapore, they perform courier services for both large businesses, individual business owners as well as end consumers. You can check out their company page on LinkedIn if you’re intending to join their company as a courier or deliveryman. In any case, I have only used them once, but it blew me away. There was once when I needed an urgent delivery at night and no one was responding to my calls. At that time, PCA Masters was surprisingly still around at 8+ pm and they picked up my call and I managed to arrange my delivery with them. I think it’s when companies that serve their customers as well as PCA Masters that they’re able to generate word of mouth (yes, like through this post). Anyway, they served really well, and their delivery guy was really punctual. I would highly recommend you to use them if you need trusted courier services.

2. Poh Tiong Choon Logistics

An old logistics company in Singapore, they have been established in Singapore for quite a number of years. Dealing with general goods transportation, warehousing and freight management PTC Logistics is an old household name in the business to business industry in Singapore. Founded originally by Poh Sin Choon, it is now headed by Poh Choon Ann. You can more or less call it a family business. If you need any heavy deliveries, Poh Tiong Choon is definitely one of the companies you can consider. They’re not cheap, but they’re trustworthy so I think it’s alright.

3. Fedex

If you need international deliveries by plane out from Singapore, I would suggest you to still use international corporations’ services such as those by Fedex. When it comes to deliveries by air, there is no one better than Fedex at the moment. With both branding, service and price advantages, Fedex is definitely the king of the air transportation services industry around the world, in Asia, and definitely in Singapore too. Due to their vast network of logistics planes, it is always possible to squeeze in a last minute overseas delivery out of or into Singapore by air with Fedex. This may not be the case with other companies like TNT or DHL whose capacity still far underwhelms… especially when it comes to punctuality. I realized that Fedex, though not the cheapest service in the world, is one of the most punctual air transportation companies in the world.

Matured logistics industry in Singapore

The logistics industry in Singapore is considered matured by the world’s standards. Industry growth is maintained at a steady pace. There is a broad range of logistics services established in the market. Demand for the logistics services is continuously huge.

Within the matured Singapore logistics industry, there are a lot of different niches – freight forwarding niche, dangerous goods logistics niche, courier logistics niche, and commercial cargo goods logistics niche. Together, the broad logistics industry in Singapore generates billions of dollars every year.

The most notable difference across the various logistics niche is the different items transported by the logistics companies. Each of them have specialized equipment to handle the transportation of the various types of goods. The similarity lies in their delivery standards. Every logistics industry have a pricing model which charges customers higher price for faster delivery. It makes sense to do so anyway as the companies have to prioritize these customers’ deliveries over the others and fulfill the delivery deadline.

Various delivery speeds include same day delivery, next day delivery, same week delivery, next week delivery, and the urgent delivery (which will normally be completed within 2 hours). Different customers have different requirements which result in the development of this delivery standards in the logistics industry. For customers with time-sensitive goods such as perishable goods or urgent documents to be sent to clients, it will make sense to get same day delivery or urgent class delivery service. For those people who have a lower budget and do not mind the longer delivery time, they will pick the next day delivery, same week delivery, or next week delivery instead.

In order to do well in the logistics industry, your business operations must be optimized effectively. It will greater reduce business cost which will then allow you to lower your price for customers or enjoy a higher profit margin. Many logistics companies in Singapore have highly efficient business processes and operations. Hence, the market rates for logistics services in Singapore are quite low as compared to other countries. In another words, the logistics industry in Singapore is competitive. This is natural as the industry is very matured.

Many logistics companies in Singapore continue to improve their business operations continuously in a bid to survive and last for the longer term. As a developed nation, the companies in Singapore are very receptive to technology. New technologies are tested and researched to help improve business operations and even the business models. As the demand for logistics services is projected to grow at a steady pace over the years, many players want a piece of the pie.