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22 March 2025

Saudi Arabia Imposes Heavy Fines To Improve Shipping Services

New regulations aim to enhance logistics efficiency and customer satisfaction in the Kingdom.

The General Authority for Transport in Saudi Arabia recently announced a pivotal step aimed at enhancing the efficiency of the shipping sector and increasing customer confidence in logistics services. The announcement involves imposing a financial fine of no less than 5,000 Saudi Riyals on shipping companies that either fail to deliver shipments to the pre-agreed locations or experience delays in their delivery.

This move is part of a broader effort to address challenges arising from the fast-paced growth of the logistics and shipping industry, fueled largely by the expansion of e-commerce in the Kingdom. The increase in demand for delivery services has brought about significant obstacles, particularly regarding timely shipments and adherence to set delivery locations. "This step guarantees improving the efficiency of the shipping sector and enhancing confidence in working in shipping and delivery services," stated Saleh Al-Zouayed, the Official Spokesman for the General Authority for Transport.

The new executive regulations introduced by the authority obligate shipping companies to utilize the national address in all delivery operations. This requirement is intended to alleviate problems caused by drivers or companies not adhering to the national address, thus ensuring accurate deliveries and higher quality service. If a driver or the shipping company fails to comply with this regulation and instead requests the location from the customer directly, this will incur a penalty up to 5,000 Saudi Riyals. “The new executive plan obligates shipping companies to employ national cadres in all delivery operations to ensure delivery accuracy and improve service quality,” added Al-Zouayed.

In response to customer complaints about service violations, the General Authority for Transport has implemented multiple channels through which the public can voice their concerns. Beneficiaries can now report issues via a unified number by calling 19929, which allows for quick complaints or inquiries about shipping services.

In addition to the phone line, the authority has made provisions for complaints to be sent through email. They have also facilitated communication via a WhatsApp service at the number 0507363133, ensuring reports can be made 24/7. Completing this multi-faceted approach, the Authority's official website now hosts electronic forms that enable efficient reporting, ensuring prompt action on complaints and further enhancing service quality.

The logistics and transport sector in Saudi Arabia has witnessed rapid development over recent years, leading to increasing responsiveness to market needs. This growth, while beneficial, also highlighted persistent challenges, particularly in fulfilling customer expectations regarding delivery times and accuracy. The General Authority for Transport's proactive measures reflect a commitment to continuous improvement and adaptation to these industry demands.

With the anticipated positive impacts of these regulations, the authority aims to not only uphold the rights of beneficiaries in the shipping process but also to foster a more competitive environment among shipping companies. This shift towards stricter compliance and accountability is expected to enhance the quality of logistics services across the Kingdom.

As the fine for violations kicks in, industry observers will likely monitor its effectiveness in promoting better practices among shipping companies. Customers, on their part, stand to benefit from improved services tailored to meet their needs better amidst a rapidly evolving commercial landscape.

The authority’s decision takes place amidst notable statistics highlighting the rapid population growth and increasing demand for shipping services in Saudi Arabia. New data is anticipated, shedding light on the number of residents in the country as of 2024, excluding non-residents, which could further illuminate trends in domestic logistics growth and the evolving landscape of consumer demands.