News #116 - Negotiable air cargo document draft convention set to be finalised

The United Nations Commission on International Trade Law (UNCITRAL) is on track to finalise a landmark draft convention on negotiable air cargo documents, which aims to enable the transfer of goods ownership while in transit.

The draft convention is set to be reviewed and finalised during UNCITRAL’s 58th session, scheduled to take place in Vienna from 7 July to 23 July 2025.

A Call for Global Participation

At a recent awareness event focused on negotiable cargo documents, a call to action was issued, urging governments engaged in global trade to actively participate in finalising the UN convention. The draft convention seeks to establish negotiable cargo documents as legal titles representing goods in transit, spanning all modes of transport. This innovation is expected to:

• Enhance flexibility in trade operations.
• Bridge gaps in trade finance.
• Support the digital transformation of global trade systems.

Once the draft convention is finalised, it will be submitted to the United Nations General Assembly for adoption, anticipated in late 2025.

Addressing a Long-standing Gap in Transport Documentation

Unlike ocean bills of lading, which serve as documents of title and can be transferred to new parties during transit, current transport documents such as consignment notes (for rail and road transport) and air waybills (for air cargo) lack this functionality.

The proposed negotiable cargo document aims to fill this gap for multimodal and unimodal transportation systems that do not involve maritime routes. It will allow shippers to:

• Retain the value of collateral in trade finance.
• Maintain the ability to sell goods while they are in transit.
• Seamlessly switch between modes of transportation in response to disruptions, without losing operational or financial leverage.

Introducing Negotiable Electronic Cargo Records

The draft convention proposes a shift to digital negotiable cargo documents, referred to as negotiable electronic cargo records. These records will:

• Provide a legal framework for issuing and managing electronic documents of title.
• Simplify the door-to-door documentation process.
• Boost operational efficiency by reducing paperwork and enhancing process automation.

This development marks a significant step forward in modernising global trade and addressing challenges in multimodal transport logistics.

Source: https://www.aircargonews.net/supply-chains/negotiable-air-cargo-document-draft-convention-set-to-be-finalised/1080230.article

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