By Damian BrettDamian Brett9 June 2025
Preparation,Before,Flight.,Loading,Of,Cargo,Container,Against,Airplane.
The United Nations Commission on International Trade Law (UNCITRAL) is expected to soon finalise the draft convention on negotiable air cargo documents to allow the transfer of ownership of goods while in transit.
The draft document is expected to be finalised at the 58th UNCITRAL session to be held in Vienna between 7 July to 23 July.
At a recent event to raise awareness of negotiable documents, a call for action was launched to invite all governments interested in global trade to participate in the finalisation of the draft UN convention on negotiable cargo documents.
The draft convention establishes negotiable cargo documents as a title representing goods in transit across all modes of transport, which could be used to enhance flexibility in trade, bridge the trade finance gap and support the digital transformation of global trade.
Once finalised, the draft convention will be submitted to the United Nations General Assembly for adoption in late 2025.
Unlike ocean bills of lading, transport documents issued by rail, road and air carriers, which are often known as consignment notes or air waybills in the case of air cargo, are not used as documents of title and cannot be transferred to another party during transport.
The negotiable cargo document under development at UNCITRAL is intended to serve as a document of title to fill this gap in multimodal and unimodal transportation, not involving a maritime leg.
Being able to switch to alternative modes of transportation in case of disruption of shipping routes without diminishing the value of collateral in the context of trade finance or losing the ability to sell goods in transit is another reason for shippers to use negotiable cargo documents.
Under the proposals, the negotiable cargo documents will exist in a digital form, known as negotiable electronic cargo records.
The draft instrument will provide a legal framework for the issuance and use of a single electronic record that could cover door-to-door transportation, thereby simplifying the documentation process and increasing efficiency in operations.