The United Nations Commission on International Trade Law (UNCITRAL) has approved a draft convention on negotiable cargo documents, recommending it for adoption by the UN General Assembly.
The new draft convention closes a legal gap in international trade by creating a harmonized legal framework for negotiable title documents for all modes of transport: air, road, rail, and sea—regardless of the different modes of transport used for the cargo.
Until now, only sea freight has benefited from a widely recognized legal document (the bill of lading) that allows goods to be bought, sold, or used as collateral during transportation. In contrast, documents used for proper transportation by road, rail, and air are generally non-negotiable, meaning they cannot be transferred to another party as a means of conveying the goods they represent. This legal gap has created cash flow problems for businesses, including MSMEs, when goods are transported via domestic routes, limited the ability of businesses in landlocked regions to trade across borders and hindered the development of seamless door-to-door transport services.
The draft Convention on Negotiable Transport Documents was finalized during the 58th session of UNCITRAL, reflecting three years of collaboration between diplomats, legal experts and trade professionals. This achievement reflects a shared commitment to developing a practical, future-oriented legal framework for modern trade.
Following UNCITRAL’s approval of the draft Convention, Beate Cervenka, Chair of Working Group VI, said: “Today marks a key moment for the future of global trade. The Commission has completed work on a text that closes a long-standing legal gap by extending the proven benefits of negotiable instruments to all modes of transport. This will enable small businesses to access finance, landlocked countries to participate more fully in global trade, and all of us to build a more efficient, sustainable and digital trade ecosystem. With the new draft Convention on Negotiable Cargo Documents, the vision of a world where trade is faster, safer and more accessible is becoming a reality. All Member States are encouraged to support this transformative instrument in the General Assembly.”
The draft convention on negotiable freight documents will be submitted to the UN General Assembly with a recommendation for adoption at the 80th session of the General Assembly in late 2025.