That means valuable cargo can be sold, diverted or used to secure financing during what could be a long voyage, not just before it is loaded on board.
“This is a real turning point for international trade“said Anna Joubin-Bret, Secretary of the United Nations Commission on International Trade Law (UNCITRAL), which led the three-year negotiations. “A single transport document that is multimodal, fully electronic and negotiable.”
From Brazil to Paraguay, passing through Azerbaijan
Today, negotiable transport documents exist primarily for goods traveling by sea, where journeys can last weeks. Products such as oil or cocoa are often sold several times at sea as prices fluctuate.
In contrast, goods transported by road, rail or air are typically shipped to a single buyer and destination, limiting flexibility and access to financial instruments.
James Hookham, director of the Global Shippers Forum, described a hypothetical shipment of commodities traveling from a supplier in Brazil to a subsidiary in Paraguay.
A container ship docks in Vietnam.
“Market conditions change,” Hookham said. “While the merchandise is on its way, which can take several days, it is possible to find a buyer willing to pay a better price elsewhere.”
Under the new system, he said, those goods could be sold mid-trip to a buyer in, say, Azerbaijan, changing the destination along the way.
“It’s almost like crossing out the address on an envelope that has already been mailed..”
Goods heading to Paraguay by ship could be flown to Istanbul, Türkiye, and then put on a train to Azerbaijan, something none of that could do under current restrictions.
Wide-ranging benefits
This type of flexibility is becoming essential as new trade corridors open up in Central Asia, between China and Europe and across Africa, often including routes reaching landlocked countries.
The new conventionallows you to not simply abandon products because they are sold by expiration date”he said, adding that the sources of disruption to international trade continue to multiply.
Mr. Hookham highlighted the negative impact of recent tariff agitation and unexpected extreme weather events – such as the recent disruption to trade routes in the Caribbean caused by Hurricane Melissa – and cargo seizures in the Red Sea.
If Plan A is not going to work for you, or is going to cost you a lot of money, this is the alternative
The convention aims to reduce risks for banks and carriers by providing clear legal rules on who owns the cargo at any time.
That legal certainty, Hookham said, makes banks more likely to finance deals and helps shippers avoid disputes over delivering goods to the wrong party.
“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,” Hookham said.
A freight train locomotive crosses the Absirom bridge on the Trans-Iran Railway in Iran.
First to register?
The convention will be especially important for landlocked and developing countries, helping them further integrate into the global trading system and reduce costs.
African and Central Asian countries, as well as major trading nations, including China, which launched the process that led to this week’s breakthrough, have already expressed interest in the UN in 2019.
The negotiation process, which included extensive consultations, is an example of “effective multilateralism,” Ms. Joubin-Bret stressed.
The UN General Assembly adopted the resolution supporting the convention on December 15. A signing ceremony is planned for the second half of 2026 in Accra, Ghana.
The treaty will enter into force once ten countries ratify it.