UN Adopts Cargo Convention Enabling In-Transit Trade Transactions

The United Nations General Assembly has adopted a new international convention aimed at modernizing global trade by enabling the use of negotiable cargo documents across all modes of transport. The United Nations Convention on Negotiable Cargo Documents was formally approved during the Assembly’s 80th session on Dec. 15 in New York and is expected to reshape how goods in transit are financed, transferred, and documented worldwide.

The convention establishes a legal framework allowing cargo to be bought, sold, or used as collateral while in transit, extending negotiability beyond maritime bills of lading to air, road, and rail transport documents.  Previously, documents such as air waybills and consignment notes could not function as documents of title and could not be transferred during transport, meaning goods could not be sold or reassigned until delivery.

Under the new framework, negotiable cargo documents will represent title to goods in transit across all transport modes. This change is designed to increase commercial flexibility, support trade finance, close financing gaps, and facilitate the digital transformation of global supply chains. The convention can be applied without altering existing operational or documentary processes, requiring only a notation on the transport document stating that it is subject to the convention.

The International Federation of Freight Forwarders Associations (FIATA) welcomed the treaty, describing it as a turning point for international trade and logistics. FIATA noted that the convention addresses long-standing legal and operational limitations that restricted the negotiability of transport documents outside maritime shipping.

Key benefits include legal recognition of negotiable multimodal transport documents, a voluntary opt-in mechanism for trading parties, and a harmonized, technology-neutral framework that operates across jurisdictions and transport modes. The treaty explicitly recognizes electronic negotiable transport records, ensuring legal equivalence between electronic and paper documents. Existing liability regimes are preserved, providing continuity and legal certainty for freight forwarders and their clients.

The convention also aims to simplify documentation and improve efficiency in international logistics. By allowing a single negotiable cargo document to cover the entire transport journey, it reduces administrative complexity, streamlines operations, and facilitates customs clearance. This approach is especially relevant for multimodal shipments combining sea, air, rail, and road transport.

China played a central role in developing the convention. The country’s Ministry of Commerce said the treaty reflects China’s commitment to multilateralism and its efforts to contribute to global public goods and reform global governance.