Glossary > Contracts & Shipping > Carry Costs
Carry Costs
Contracts & Shipping
In Simple Terms
Carry costs are what you pay just to hold green coffee you've already bought. If your coffee is sitting in a warehouse waiting for you to take it, you're typically paying for storage, insurance, and possibly interest on any financing - those are your carry costs.
What are carry costs in green coffee buying?
When you buy green coffee but leave it sitting in an importer's warehouse rather than collecting it, the clock starts running. Carry costs are the ongoing charges - storage fees, cargo insurance premiums, sometimes financing interest - that accumulate while the coffee waits.
Most importers charge storage monthly, per bag or per tonne. It doesn't sound like much individually, but a lot that sits for three months before you collect it can cost meaningfully more than the price you originally agreed. A roaster who contracts 20 bags of a Kenyan lot in January and doesn't collect until April will find that gap on their invoice.
Carry costs matter most when you're buying forward contracts or building seasonal stock. Factor them into your unit cost from the start, not as a surprise at collection.
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