Working Group VI of the United Nations Commission on International Trade Law (UNCITRAL) has successfully developed a groundbreaking new convention on Negotiable Cargo Documents (NCDs). This pivotal legal instrument is set to significantly shape the future of freight forwarding and the efficient movement of goods within today’s intricate global supply chains.
The new NCD Convention establishes a harmonized legal framework for the use of negotiable transport documents across all modes of transport, encompassing both traditional paper and modern electronic forms. It critically reinforces the essential role of freight forwarders as carriers and provides robust support for modern, multimodal logistics operations.
During the development process, maritime stakeholders advocated for narrower frameworks that would have excluded maritime transport from the Convention’s scope. However, FIATA, in close collaboration with the Global Shippers Forum (GSF) and the ICC Banking Commission, successfully championed an inclusive approach that ensures all transport modes are covered. This multimodal perspective is vital for supporting complex and agile transport planning, particularly benefiting territories reliant on hinterland transport and integrated multimodal logistics chains.
FIATA hails the NCD Convention as a monumental victory for the freight forwarding and logistics industry. “This Convention fills a clear legal gap in multimodal transport, aligning legal frameworks with operational realities,” stated a representative from FIATA. “It will significantly support trade finance for SMEs in emerging economies and crucially safeguard the indispensable role of forwarders in the rapidly evolving digital era.”
The NCD Convention marks a significant step towards greater legal certainty and efficiency in international trade, facilitating smoother and more secure transactions across diverse transport environments.
