Efforts to create a harmonised legal framework for negotiable cargo documents have advanced significantly with the United Nations Commission on International Trade Law (UNCITRAL) approving a draft convention and recommending it for adoption by the United Nations General Assembly.
The proposed convention would establish a common legal foundation for negotiable documents of title across all transport modes — air, road, rail, and sea — aiming to resolve a long-standing legal gap that has hindered global trade. According to the International Civil Aviation Organization (ICAO), the current lack of negotiable documents for non-maritime modes has created serious limitations for businesses, particularly those in landlocked countries and smaller enterprises, by restricting their access to financing and cross-border trade opportunities.
Unlike ocean freight, where bills of lading allow goods in transit to be bought, sold, or used as collateral, air, road, and rail cargo currently rely on non-negotiable documents. These cannot be transferred to another party to represent ownership of the underlying goods. ICAO said this has limited the development of integrated, seamless door-to-door logistics services and created cash flow challenges for many companies.
The draft convention was finalised during UNCITRAL’s 58th session, following three years of collaborative work involving diplomats, legal experts, and international trade professionals. Chair of the working group, Beate Czerwenka, described the development as a pivotal moment for global commerce. She said the new legal framework would help small businesses access finance, enable greater trade participation by landlocked nations, and contribute to the creation of a more efficient and resilient global trade system.
Under the proposal, negotiable cargo documents would be issued in digital format, referred to as negotiable electronic cargo records. These records are designed to simplify the documentation process by covering multimodal, door-to-door shipments under a single electronic instrument, increasing both operational efficiency and legal certainty.
The draft will now be transmitted to the United Nations General Assembly, with a recommendation for adoption during its 80th session in late 2025. If approved, the convention is expected to mark a significant step toward modernising and unifying international trade documentation, paving the way for digital, flexible, and inclusive logistics systems.