In logistics, a bilateral agreement refers to a binding contract between two specific parties where both sides have mutual obligations and benefits. This term has two distinct and equally important applications for project cargo:
Public (Government) Agreement
A formal trade treaty between two nations (e.g., a Free Trade Agreement or FTA). These agreements are critical for project planning as they dictate tariffs, customs procedures, and import quotas. A project that sources a multi-million dollar turbine from a country with a favorable bilateral agreement can save millions in taxes.
Private (Commercial) Agreement
A private contract between two companies. For project cargo, this is common. An EPC (Engineering, Procurement, and Construction) firm might have a bilateral service agreement with a heavy-lift carrier to guarantee vessel space and lock in rates for the entire duration of a project.