The convention was adopted by the UN General Assembly on December 15 following three years of negotiations led by the UN Commission on International Trade Law (UNCITRAL).
The UN has adopted a landmark convention creating a single, fully electronic, negotiable transport document usable across road, rail and air.
The framework allows goods to be sold, rerouted or financed while in transit, extending flexibility beyond sea freight.
Adopted on December 15 after UNCITRAL-led talks, it enhances trade finance access, reduces legal risk, and supports developing economies.
Currently, negotiable transport documents are largely confined to sea freight, where long voyages allow goods such as oil or cocoa to be traded multiple times while at sea. By contrast, cargo moved by road, rail or air is typically tied to a single buyer and destination, limiting commercial flexibility and access to trade finance, UN said in a press statement.
“This is a real game changer for international trade,” said Anna Joubin-Bret, secretary of UNCITRAL. “One single document of transport which is multimodal, fully electronic, and negotiable.”
James Hookham, director of the Global Shippers Forum, illustrated the impact through a hypothetical shipment travelling from a supplier in Brazil to a subsidiary in Paraguay. Under the new system, shifting market conditions could allow the cargo to be sold mid-journey to a buyer in another country, with the destination changed en route.
“It’s almost like crossing out the address on an envelope after it’s already been mailed,” said Hookham.
Goods originally bound for Paraguay could instead be flown to Istanbul, Turkiye, and then transported by rail to Azerbaijan—options not feasible under current rules.
The convention is expected to deliver wide-ranging benefits as new trade corridors emerge across Central Asia, between China and Europe, and across Africa, including routes serving landlocked countries. It also addresses growing trade disruptions caused by tariffs volatility, extreme weather events and geopolitical risks affecting major shipping lanes.
By clearly defining cargo ownership at every stage of a journey, the treaty aims to reduce legal uncertainty for banks and carriers. This clarity is expected to improve access to trade finance and reduce disputes over cargo delivery.
“If Plan A isn’t going to work for you, or it’s going to cost you a lot of money, this is the alternative,” added Hookham.
The convention is seen as particularly significant for landlocked and developing economies, helping them integrate more deeply into global trade while lowering transaction costs. Interest has already been expressed by African and Central Asian nations, as well as major trading countries including China, which initiated the process at the UN in 2019.
Joubin-Bret described the negotiation process as a strong example of effective multilateralism, noting the extensive consultations involved.
A formal signing ceremony is planned for the second half of 2026 in Accra, Ghana. The treaty will enter into force once it is ratified by at least 10 countries, added the statement.
Fibre2Fashion News Desk (SG)
