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GSC Genset charge

Fuel & Energy

Key Information

Who Charges Shipping carriers, Logistics service providers
Who Pays Shipper, Consignee
When Applied Per duration of use or distance traveled

What is GSC?

The Genset Charge, often abbreviated as GSC, refers to the fee associated with the provision of a generator set (genset) used to power refrigerated containers, commonly known as "reefers," during their inland transportation. This charge arises because refrigerated containers require a continuous power supply to maintain the necessary temperature for perishable goods. When these containers are transported overland, especially by truck or rail, they cannot rely on the vessel's power supply, necessitating the use of a genset.

The Genset Charge is typically levied by the carrier or the logistics service provider responsible for arranging the inland transportation. It is paid by the shipper or consignee, depending on the terms of the shipping agreement. This charge applies primarily in scenarios where there is a need to maintain the integrity of temperature-sensitive cargo over a considerable distance from the port to the final destination or vice versa.

Billing for the Genset Charge can be structured in various ways, often depending on the duration of use or distance traveled. It is crucial to differentiate this charge from other refrigeration-related fees such as the reefer plugging charge, which is incurred when containers are connected to an electricity supply at a port or terminal.

In practical terms, shippers and logistics coordinators must ensure that gensets are adequately maintained and operational to avoid power failures that could compromise cargo quality. Additionally, it is important to verify the compatibility of the genset with the container's power requirements to prevent technical issues during transit. Understanding these logistical nuances ensures smooth operations and the preservation of refrigerated goods throughout the supply chain.

Frequently Asked Questions

What is the Genset Charge (GSC) in shipping?

The Genset Charge (GSC) is a fee for using a generator set to power refrigerated containers during inland transit. This ensures perishable goods in reefers maintain their required temperature, especially when transported by truck or rail without access to a ship's power supply.

Who pays the Genset Charge and who charges it?

The Genset Charge is typically paid by the shipper or consignee. It is charged by shipping carriers or logistics service providers to cover the costs of providing power to refrigerated containers during inland transport.

How is the Genset Charge (GSC) calculated?

The Genset Charge (GSC) is calculated based on the duration of use or the distance traveled by the refrigerated container. The specific rate can vary depending on the logistics provider and the route taken.

How to avoid the Genset Charge (GSC) in shipping?

Avoiding the Genset Charge (GSC) entirely may not be possible if transporting perishable goods inland. However, optimizing routes and minimizing transport time can reduce the fee. Consult with logistics providers for the most cost-effective solutions.