How High Freight Costs Impact Your Small Business

Consider many things when opening or managing an already existing business. You need to think about your services, staff, prices, taxes, marketing, etc. If you have a small business, thinking about these things and handling them well can be essential for the success of your business. Another thing to think about is freight costs. These costs cover shipping by train, truck, or plain or overseas shipping. Since you are only a beginner in the marketplace, some tips and advice might come in handy. Therefore, one of the best logistic companies in Saudi Arabia gives you a guide on how high freight costs impact your small business.

How High Freight Costs Impact Your Small Business

High costs influence many industries. That goes for shipping industries as well. Higher costs of logistics services international are mostly the result of the COVID-19 pandemic. Since most people needed to stay home, they could not spend money on traveling and similar stuff. That is why people decided to spend more money purchasing online products. Even though this was a perfect scenario for businesses, there were too many packages to ship. 

A ship in the sea
High freight costs impact your small business in many ways, mostly negatively.

That’s when delays and complications for freight forwarders in Riyadh started. Bigger businesses have a direct connection with freight companies, which makes negotiating prices easier. Small businesses do not have that option. Since COVID-19, the price of shipping containers has been rising. That affects your small business because:

  • There are more delays
  • Higher costs require higher price

More delays and less income

The two hardest effects are delays and less income. More work equals higher prices, which has recently become even more noticeable. Therefore, since air freight to Saudi Arabia has thousands and thousands of packages to deliver, they have more delays than usual. That is normal, of course. However, this can impact your business negatively, especially if the customers start complaining about their packages, wanting a refund, and canceling orders. The biggest delays usually have overseas shipping, and air shipping is usually much faster.

A two-people meeting
Rising of prices is stressful for all business owners, especially for smaller ones.

Another effect is less income. Since high freight costs impact your small business, you will either have to charge more for your products to ship them via ocean freight to Saudi Arabia or go bankrupt. If you raise the prices, especially double or triple they used to be, you might lose many existing and potential customers. A study has shown that 36% of businesses had smaller margins due to rising shipping costs. If you have fewer customers, it will be harder for you to maintain your business and expand it to other countries.


With recent price risings, shipping prices have risen as well. Unfortunately, high freight costs impact your small business negatively, mostly due to delayed shipping and a bigger loss than earnings. If you have a small business, the best thing to do is stick to local marketing until your business expands and is strong enough to handle all perks of having a big business. Good luck!

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