On 15th December, the United Nations General Assembly approved a resolution for the UN Convention on Negotiable Cargo Documents (NCDs). This agreement will simplify and improve paperwork for global shipping and trade.

For the first time, goods transported by road, rail, air, or sea can be documented with a single negotiable document, available in both paper and electronic formats. This lets consignees transfer ownership and change destination details for goods that are already in transit, a feature that was previously only available for maritime bills of lading.

“This is a real game changer for international trade,” said Anna Joubin-Bret, Secretary of the UN Commission on International Trade Law (UNCITRAL), who led the three-year negotiations. “One single document of transport which is multimodal, fully electronic, and negotiable.”

Until now, documents used for goods transported by road, rail, and air have typically been non-negotiable, preventing their transfer to another party or use as collateral for financing. The convention creates a technology-neutral framework that supports both traditional paper documentation and electronic records.

Key provisions of the convention

The Convention, also referred to as the “Accra Convention on Negotiable Cargo Documents,” establishes several fundamental principles governing the use of NCDs.

1. Basic Rule of Negotiability: Rights provided in the NCD can be exercised only by the document holder and will transfer together with the transfer of the NCD itself (Articles 7(1) and 11). An NCD may be transferred either by endorsement and transfer of possession, or by mere transfer of possession if the last endorsement is in blank.
2. Document of Title Function: The issuance and transfer of an NCD signifies the same legal authority as physically handing over goods (Article 7(4)). This establishes NCDs as legitimate documents of title, regardless of the transport mode used.
3. Holder Rights and Liabilities: The Convention clearly defines the rights of NCD holders, including the right to demand delivery of goods at destination (Articles 7 and 10), while also establishing holder liability (Article 9).
4. Good Faith Protection: Third parties acting in good faith in reliance on information contained in the NCD receive legal protection (Article 6(3)).
5. Party Autonomy: The Convention respects freedom of contract, requiring that NCDs be issued only where agreed by both the transport operator and consignor (Article 3(1)).
6. Electronic Equivalence: Detailed provisions (Articles 12-18) support the use of electronic NCDs (eNCDs), with rules drafted with reference to the UNCITRAL Model Law on Electronic Transferable Records.

The Convention focuses only on the issuance and use of NCDs and does not regulate the underlying transport contract. This approach ensures that it works alongside existing transport laws instead of conflicting with them.

Benefits for global supply chain

The convention addresses challenges faced by the landlocked developing countries worldwide, for whom documentation inefficiencies have created substantial barriers to trade participation. 

James Hookham, Director of the Global Shippers Forum, described a hypothetical scenario where commodities travelling from Brazil to Paraguay could be redirected mid-journey to Azerbaijan if market conditions change.

“It’s almost like crossing out the address on an envelope after it’s already been mailed,” Hookham noted. The goods could be flown to Istanbul, Türkiye, and then put on a train to Azerbaijan, a flexibility currently impossible under current regulations.

This adaptability is becoming important as new trade corridors open across Central Asia, between China and Europe, and throughout Africa, often including routes serving landlocked countries. 

The convention seeks to minimise risks for banks and carriers by establishing clear legal rules regarding cargo ownership at all times.

This clarity makes it easier for banks to finance deals and helps carriers avoid disputes about delivering goods to the wrong party.

“This adoption closes a long-standing legal gap and makes global trade faster, safer and more accessible, supporting sustainable economic growth,” said Tomasch Kubiak of the International Chamber of Commerce Banking Commission.

It is expected to improve cash flow for businesses, including micro-, small- and medium-sized enterprises in the developing world, by facilitating access to trade finance.

Implementation timeline 

The UN General Assembly adopted the resolution supporting the convention on December 15. The signing ceremony will take place in the second half of 2026 in Accra, Ghana. 

Interest has already been expressed by African and Central Asian countries, as well as by major trading nations, including China, which initiated the process at the UN in 2019. 

The treaty will go into effect once ten countries ratify it.