UN Convention Promises Faster, Cheaper, Flexible Global Trade

A logging ship navigates along the Amazon River.

Moving goods around the world could soon become cheaper, faster, and far more flexible following the adoption of a new United Nations-backed agreement that modernizes the paperwork behind global shipping.

The UN Convention on Negotiable Cargo Documents creates, for the first time, a single document usable for trains, trucks, and planes, allowing logistical changes for goods already in transit.

This means valuable cargo can be sold, rerouted, or used to secure financing during what could be a long journey, not just before being loaded aboard.

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

From Brazil to Paraguay, via Azerbaijan
Currently, negotiable transport documents mainly exist for goods traveling by sea, where voyages can take weeks. Goods such as oil or cocoa are often sold multiple times at sea as prices fluctuate.

By contrast, goods moving by road, rail, or air are usually consigned 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.

“Market conditions change,” Hookham said. “While the goods are in transit, which might take several days, you may find a buyer willing to pay a better price elsewhere.”

Under the new system, goods could be sold mid-journey to a buyer in, say, Azerbaijan, changing the destination en route.

“It’s almost like crossing out the address on an envelope after it’s already been mailed.”

Goods heading to Paraguay by boat could be transported by plane to Istanbul, Türkiye, and then by train to Azerbaijan—none of which could be done under today’s restrictions.

Wide-ranging benefits
This flexibility is becoming essential as new trade corridors open across Central Asia, between China and Europe, and throughout Africa—often including routes serving landlocked countries.

The convention “allows you not to abandon goods just because the sale-by date expires,” Hookham said, adding that disruptions such as tariffs, extreme weather, and Red Sea cargo seizures continue to multiply.

The convention also reduces risks for banks and carriers by providing clear legal rules on who owns the cargo at any given time.

“That legal certainty makes banks more likely to finance deals and helps carriers avoid disputes over delivering goods to the wrong party,” Hookham said.

“If Plan A isn’t going to work for you, or it’s going to cost a lot, this is the alternative,” he added.

First to sign up?
The convention will be especially important for landlocked and developing countries, helping them integrate further into the global trading system and reduce costs.

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

The negotiation process, which included wide consultations, is an example of “effective multilateralism,” Joubin-Bret underlined.

The UN General Assembly adopted the resolution supporting the convention on 15 December. 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.