Zum Inhalt springen

Holding Cost - Definition & Meaning | Logistics Glossary

HC

GlossaryEN1 min readUpdated: Jun 24, 2026

Holding Cost

Inventory managers and procurement teams treat holding costs as a core input in supply chain calculations: they represent all costs incurred simply by keeping stock on hand, regardless of whether goods are moving.

Quick Answer

Inventory managers and procurement teams treat holding costs as a core input in supply chain calculations: they represent all costs incurred simply by keeping stock on hand, regardless of whether…

Components typically include warehouse rent or depreciation, insurance on stored goods, the opportunity cost of capital tied up in inventory, and write-downs for perishable or obsolete items.

A widely cited benchmark is 20–30 percent of average inventory value per year, though the figure varies considerably by industry and product type.

Last updated: 24 June 2026Published: 19 June 2025

Source: https://www.investopedia.com/terms/h/holding-cost.asp

Category

Logistics Concept

Reading time

1 min

Words

135

Mentioned in

–

Holding Cost

Related links1 Bereiche/Sections • 5 Links▾

Navigation

Glossary overview
News
Information
Tools
Transport cost calculator

Definition & Explanation

Inventory managers and procurement teams treat holding costs as a core input in supply chain calculations: they represent all costs incurred simply by keeping stock on hand, regardless of whether goods are moving. Components typically include warehouse rent or depreciation, insurance on stored goods, the opportunity cost of capital tied up in inventory, and write-downs for perishable or obsolete items. A widely cited benchmark is 20–30 percent of average inventory value per year, though the figure varies considerably by industry and product type. Holding costs are central to economic order quantity (EOQ) models and safety stock sizing – excess stock ties up working capital, while too little jeopardises service levels. Unlike ordering costs, which are triggered each time a purchase order is placed, holding costs accumulate continuously in proportion to the volume of stock carried.

Next steps

Matching tools and partners

Check transport insuranceEstimate coverage and premiumOpen Find HS codeDetermine the tariff number for customsOpen Calculate customs valueWork out import duties and customs valueOpen Find a matching partnerFreight forwarders and logistics partners worldwideOpen

Related Terms

You might also be interested in these terms

Standard Cost Libraries

When a freight forwarder receives a quote request for a groupage shipment from Hamburg to Warsaw, the system automatically pulls p…

Line Hold

Shipping lines and logistics service providers temporarily hold shipments on a specific transport line or service to align schedul…

Aerial Cargo Transport

A pharmaceutical company waiting on an active ingredient from Singapore, a carmaker needing spare parts within 48 hours – these ar…

Economies of Density in Urban Freight

Economies of density in urban freight describe a cost effect that takes hold when deliveries are concentrated within compact areas…

Logistics Scenario Planning and Simulation

Logistics scenario planning and simulation applies mathematical models and computer-based tools to test supply chain decisions – n…

Smart Hold-Over Estimation

Smart Hold-Over Estimation uses machine learning and historical traffic data to predict the optimal duration a container or shipme…

Logistics knowledge straight to your inbox

Free · No password · Never a paywall. Weekly top news and facts from logistics.

I agree to my email being processed for the newsletter. Unsubscribe any time.

Cite this page

Writing a report, paper or LinkedIn post? Use one of these citation templates.

Recommended format: Source: Freight Academy – Holding Cost (https://www.freight-academy.com/en/glossary/holding-cost), accessed 2026-09-17
APA style: Freight Academy Editorial Team. (2025). Holding Cost. Freight Academy. https://www.freight-academy.com/en/glossary/holding-cost
BibTeX: @misc{holdingcost2025, title = {Holding Cost}, author = {{Freight Academy Editorial Team}}, year = {2025}, url = {https://www.freight-academy.com/en/glossary/holding-cost}, note = {Freight Academy, accessed 2026-09-17} }

Content reviewed and editorially cleared.

Community Questions & Answers

Share your knowledge, ask follow-up questions, or add practical insights to this page. Every contribution is moderated before publication.

No community answers yet. Be the first.

Every contribution is reviewed before publication. Your email is never shown publicly.