The above have negatively impacted the quarter’s performance and will result in an operating loss for the group's post and parcel segments for 1QFY2022.
In its latest 1QFY2022 ended June operational update, Singapore Post (Singpost) announced that its domestic post and parcel segment continued to trade in challenging conditions. Traditional letter mail volumes declined further, while costs rose significantly, particularly in fuel, labour and utilities. Additionally, a major eCommerce customer has insourced part of its own logistics, resulting in lower volumes.
The international post & parcel business continued to face significant headwinds from further supply chain disruptions, and there was also a knock-on impact from the ongoing lockdowns in cities in China due to the Covid-19 situation. These have adversely impacted conveyance costs for our supply chains originating from China. Additionally, despite the incremental air capacity improvement through Changi, this has yet to fully recover to pre-pandemic levels and air conveyance costs remained elevated through this period.
