Translation. Region: Russian Federation –
Source: United Nations – United Nations –
An important disclaimer is at the bottom of this article.
Polina Kubyak
December 17, 2025 Economic development
Shipping goods around the world could soon become cheaper, faster, and significantly more flexible thanks to the adoption of a new UN-sponsored agreement. It aims to streamline documentation for international shipping.
UN Convention on Negotiable Cargo Documents For the first time, it introduces a single standard that can be used for rail, road and air transport and allows for logistical changes to be made to cargo already in transit.
This means that valuable cargo can be sold, redirected, or used to obtain financing during the long haul, not just before loading.
"This is a real breakthrough for international trade," said Anne Joubin-Bret, Secretary-General of the United Nations Commission on International Trade Law (UNCITRAL), who has been coordinating the negotiations for three years.
From Brazil to Azerbaijan
Today, negotiable transport documents are mainly used in maritime transport, which can last for weeks. Commodities such as oil or cocoa are often resold several times right at sea, as prices fluctuate.
At the same time, cargo transported by road, rail, or air is typically issued to a single buyer and with a single destination, which limits the range of possible solutions and access to financial instruments.
James Hookham, director of the Global Shippers Forum, gave a hypothetical example of the movement of commodities from a supplier in Brazil to a subsidiary in Paraguay.
"Market conditions change," he explained. "While goods are in transit, which can take several days, a buyer may appear who is willing to pay a higher price elsewhere."
According to him, under the new system, such cargo could be sold, for example, to a buyer in Azerbaijan, with the destination changed during transportation.
"It's almost like crossing out the address on an envelope after the letter has been sent," Hookham added.
Goods destined for Paraguay by sea could be flown to Istanbul and then sent on to Azerbaijan – something that is impossible under the current restrictions.
A wide range of benefits
Such flexibility is becoming increasingly necessary as new trade corridors open – through Central Asia, between China and Europe, and across Africa – often with routes serving landlocked countries.
The new Convention, according to Hookham, "means cargo isn't rejected simply because the transaction period has expired," especially in the face of a growing number of factors disrupting international trade. He noted the negative impact recent instability, related to tariffs, unexpected extreme weather events – such as the recent outages in the Caribbean due to Hurricane Melissa, – as well as with the seizure of cargo in the Red Sea.
The Convention aims to reduce risks for banks and carriers by establishing clear legal rules determining who owns cargo at any given time. This certainty makes banks more willing to finance transactions and helps carriers avoid disputes related to cargo being delivered to the wrong party.
"If Plan A doesn't work for you or is too expensive, this is an alternative," Hookham emphasized.
Who will sign the agreement?
The Convention will be particularly important for developing countries and landlocked states, and will help them integrate more deeply into the global trading system and reduce costs.
African and Central Asian countries, as well as major trading powers, have already expressed interest in the agreement, including China, which initiated the process at the UN back in 2019. The negotiations, which included extensive consultations, are an example of "effective multilateral cooperation," Anna Joubin-Bret emphasized.
The UN General Assembly adopted a resolution supporting the Convention on December 15. The signing ceremony is scheduled for the second half of 2026 in Accra, Ghana. The treaty will enter into force once it is ratified by ten states.
Please note: This information is raw content obtained directly from the source. It represents an accurate account of the source's assertions and does not necessarily reflect the position of MIL-OSI or its clients.