GlossaryEN1 min readUpdated: Jul 27, 2026

Memorandum of Understanding

A memorandum of understanding, or MoU, is a written statement of intent in which two or more parties record the key points of a planned cooperation before a detailed contract is drawn up.

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Last updated: 27 July 2026

Source: https://www.investopedia.com/terms/m/mou.asp

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Definition & Explanation

A memorandum of understanding, or MoU, is a written statement of intent in which two or more parties record the key points of a planned cooperation before a detailed contract is drawn up. In transport and logistics, MoUs appear in alliances between shipping lines, port and terminal partnerships, agreements between customs administrations, or rail accords – for example when railways agree on mutual trackage rights. Whether an MoU is legally binding depends on its content: many are deliberately worded as non-binding, though individual clauses such as confidentiality or exclusivity may be enforceable, and some MoUs are expressly binding. For freight forwarders, an MoU signals that market structures may change without immediate operational consequences. Not to be confused with a letter of intent, which usually declares one party's intention, or with a fully negotiated main contract.

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