Negotiable air cargo document gains UN commission approval

By Damian BrettDamian Brett18 July 2025

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Jaromir Chalabala/ Shutterstock 2/03/2022

Plans to develop a negotiable cargo document that can be utilised by the air cargo industry have taken another step forward after the United Nations Commission on International Trade Law (UNCITRAL) approved a draft convention.

As well as approving the convention, UNCITRAL also recommended the draft for adoption by the United Nations General Assembly.

“The new draft convention addresses a legal gap in international trade by establishing a harmonised legal framework for negotiable documents of title across all modes of transport—air, road, rail, and sea—regardless of the different modes of transportation used for the cargo,” the International Civil Aviation Organization (ICAO) explained.

The document would mirror bills of lading used in ocean shipping that enable goods to be bought, sold, or used as collateral while still in transit.

“In contrast, the documents used for goods transported by road, rail, and air are typically non-negotiable, meaning they cannot be transferred to another party as a means of transferring the goods they represent,” ICAO explained.

“This legal gap has created cash flow problems for businesses, including micro, small and medium enterprises, when goods are transported via inland routes, limited opportunities for businesses in landlocked regions to trade across borders and hindered the development of seamless door-to-door transportation services.”

The draft convention on negotiable cargo documents was finalised during UNCITRAL’s 58th session.

ICAO said the document had been in development for three years and had involved the work of diplomats, legal experts and trade professionals.

Beate Czerwenka, chair of the working group that had led developments, said: “Today marks a pivotal moment for the future of global commerce. The Commission has finalized a text that bridges a long-standing legal gap, extending the proven benefits of negotiability to all forms of transport.

“This will empower small businesses to access finance, landlocked nations to participate more fully in global trade, and us all to build a more efficient, resilient, and digitalised trade ecosystem.

 

“Thanks to the new draft convention on negotiable cargo documents, the vision of a world where trade is faster, safer and more accessible is becoming a reality. All Member States are encouraged to support this transformative instrument in the General Assembly.”

The draft convention on negotiable cargo documents will be transmitted to the United Nations General Assembly, with a recommendation for adoption during the General Assembly’s 80th session in late 2025.

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.