Soon, cargo transportation worldwide may become more profitable, faster, and flexible thanks to a new agreement developed under the auspices of the UN. This agreement aims to improve documentation in the field of international transport.
According to the UN News Service, the UN Convention on Negotiable Cargo Documents introduces a unified standard for the first time, applicable to rail, road, and air transport, which allows changes to be made to logistics for cargo during transportation.
This opens up the possibility for the sale, redirection, or financing of valuable cargo even while it is in transit, rather than only before shipment. It is noted that currently, negotiable documents are primarily used in maritime transport, which can take weeks. For example, oil or cocoa is often resold while still at sea, depending on changes in market value.
In contrast, cargo transported by land or air is usually documented for a specific buyer and one destination, which limits options and access to financial instruments.
James Hookham, Director of the Global Shippers Forum, provided a hypothetical example regarding the supply of raw materials from a supplier in Brazil to a subsidiary in Paraguay.
“The market is constantly changing,” he said. “While the goods are in transit, which can take several days, a buyer may appear who is willing to offer a higher price elsewhere.”
According to him, under the new system, such cargo could be sold, for example, to a client in Azerbaijan, changing the destination during transportation.
Cargo originally headed for Paraguay could be delivered to Istanbul by plane and then sent to Azerbaijan—something that is not possible under current rules.
Flexibility in logistics is becoming increasingly relevant against the backdrop of new trade routes opening through Central Asia, between China and Europe, as well as across the African continent, including landlocked countries.
The convention aims to reduce risks for banks and carriers by establishing clear legal norms that define who owns the cargo at any given moment. This, in turn, promotes greater willingness among banks to finance transactions and helps carriers avoid disputes over deliveries.
This convention is particularly significant for developing countries and landlocked states, as it will help them integrate into global trade and reduce costs.
Interest in the agreement has already been shown by countries in Africa and Central Asia, as well as major trading nations, including China, which initiated the process on the UN platform back in 2019. On December 15, the UN General Assembly adopted a resolution supporting the Convention. The signing ceremony is scheduled for the second half of 2026 in Accra, Ghana. The treaty will become effective after ratification by ten states.
