The ship transports cargo along the Amazon River. New UN freight agreement will make global trade more flexible Polina Kubyak Economic development
Transporting goods around the world could soon become cheaper, faster and significantly more flexible thanks to a new agreement under the auspices of the UN. It is designed to modernize document flow in the field of international transport.
The UN Convention on Negotiable Cargo Documents introduces for the first time a single standard that can be used for transport by rail, road and air and allows logistics changes to be made for goods already in transit.
This means that valuable cargo can be sold, redirected or used to obtain financing during long transit, and not just before loading.
“This is a real breakthrough for international trade,” said Secretary-General of the United Nations Commission on International Trade Law (UNCITRAL) Anna Joubin-Bret, who has been coordinating the negotiations for three years.
From Brazil to Azerbaijan
Today, negotiable transport documents are mainly used for maritime transport, which can last for weeks. Commodities such as oil or cocoa are often resold several times directly at sea – as prices fluctuate.
At the same time, cargo transported by road, rail or air is usually registered to a single buyer and to a single destination, which limits the range of possible solutions and access to financial instruments. example of the movement of raw materials from a supplier in Brazil to a subsidiary in Paraguay. pay a higher price elsewhere.”
According to him, under the new system, such cargo could be sold, for example, to a buyer in Azerbaijan, changing the destination during transportation.
“It’s almost like crossing out the address on an envelope after the letter has already been sent,” – added Hookham.
Goods destined for Paraguay by sea could be flown to Istanbul and then shipped to Azerbaijan, which is not possible under current restrictions. new trade corridors – through Central Asia, between China and Europe, and throughout Africa – often with routes serving landlocked countries.
The new Convention, according to Hookeham, “allows cargo not to be rejected just because the deal has expired,” especially against the backdrop of a growing number of factors disrupting international trade. He noted the negative impact of recent instability associated with tariffs, unexpected extreme weather events, such as the recent disruptions in the Caribbean due to Hurricane Melissa, and cargo seizures in Red. sea.
The Convention is designed to reduce risks for banks and carriers by establishing clear legal rules that determine who owns the cargo at any given time. This certainty makes banks more willing to finance transactions and helps carriers avoid disputes related to the delivery of cargo to the wrong place. side.
“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 especially important for developing countries and landlocked countries and will help them to integrate deeper into the global trading system and reduce costs.
Countries in Africa and Central Asia, as well as major trading powers, including China, which initiated the process at the UN back in 2019, have already expressed interest in the agreement. The negotiations, which included extensive consultations, are an example of “effective multilateral cooperation,” stressed Anne Joubin-Bret.
The UN General Assembly adopted a resolution in support of 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 has been ratified by ten states.