carrying charge
- noun
- Specialized
- The warehouse company added a substantial carrying charge to account for insurance and storage fees.
Examples
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Retailers must consider the carrying charge when holding unsold seasonal merchandise over to the next year.
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Many investors overlook the carrying charges associated with their assets.
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Long-term inventory can increase your overall carrying charge and reduce profits.
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The carrying charge for holding inventory can add up quickly.
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Retailers must consider the carrying charge when holding unsold seasonal merchandise over to the next year.
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The warehouse company added a substantial carrying charge to account for insurance and storage fees.
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Many investors overlook the carrying charge associated with their assets.
Synonyms
An amount of money paid for a service
Money you pay to keep something, for example storage, repairs, insurance, and lost income
Surface Forms
Morphology
The noun combines 'carrying' (holding/supporting) and 'charge' (a fee), so a learner who knows both words can plausibly infer it refers to a fee related to holding or carrying something. However, the full financial sense — including interest, storage, insurance and opportunity cost — is technical and may not be predictable (and could be confused with a simple transport fee), so it is only partly transparent.
Etymology
Carrying charge comes from the picture of a shop or warehouse that carry goods for a time and adds a charge for storage, insurance and the cost of holding them. So it means 'the cost of holding inventory or an asset over time'.