Aviation Safety

Navigating Rising Costs and Port Congestion in the E-commerce Landscape

Main image to the post Navigating Rising Costs and Port Congestion in the E-commerce Landscape

Singapore Home Cooks, an e-commerce company, faces challenges due to rising air cargo costs. Flying a 95kg cargo from Japan or South Korea costs about S$1,000, five times more than shipping by sea. However, sea freight is not an option for perishable items like fruits and snacks.

The company has absorbed most of the increased costs, raising prices slightly only in some cases. They source products from overseas, especially exclusive items unavailable in Singapore, and sell them through Facebook livestreaming.

Sea shipments have been delayed to at least a month due to port congestion. Previously, cargo would arrive in Singapore in half that time. The company can no longer assure customers of the usual four to six weeks delivery timeline.

Customers have been understanding, but some have requested refunds, resulting in losses for the company.

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May 21, 2023 | 05:09