Assembly Service

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DEFINITION of 'Assembly Service'

Combining a number of small shipments from multiple parties into a single shipment. Assembly service is offered by freight forwarders and carriers in order to obtain better freight rates and reduce shipping costs.


Also known as cargo consolidation or consolidation service.

INVESTOPEDIA EXPLAINS 'Assembly Service'

This service is particularly useful for small exporters and businesses, as the shipment costs would otherwise be quite high. However, assembly service may not be the best solution for certain shipments such as high-value merchandise, fragile items, or time-sensitive material.

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