The International Federation of Freight Forwarders Associations (FIATA), represented by Vice President Richard Gluck, recently participated in the United Nations Commission on International Trade Law (UNCITRAL) Working Group VI in New York to finalize the drafting of a groundbreaking international convention governing negotiable multimodal cargo documents (the NCD Convention).
The growth of multimodal cross-border shipments has surged, largely in response to global supply chain disruptions and uncertainties. This has driven the increasing demand for multimodal transport documents, particularly the FIATA Multimodal Transport Bill of Lading (FBL). The NCD Convention aims to enhance the legal framework for negotiable multimodal transport documents, such as the FBL, by providing greater legal certainty and promoting the global harmonization of related rules. This convention represents a significant advancement for global trade, ensuring that multimodal and unimodal transport documents, where title to the goods is transferred and payments are made, are enforceable and recognized across borders.
The convention offers substantial benefits to freight forwarders, their shipper customers, and financial institutions, particularly in the context of intermodal shipments crossing national borders, where no such legal framework currently exists. The inclusion of electronic transport records within the convention is also a key driver of digital trade, encouraging the widespread adoption of the digital FBL (eFBL) in the global industry.
As part of its submission to Working Group VI, FIATA partnered with the Global Shippers Forum (GSF) and the International Chamber of Commerce (ICC) Banking Commission to provide critical industry insights. Their joint efforts drew upon the success of recent eFBL pilots conducted at the end of 2024 along key trade corridors, highlighting the practical benefits of digital transport documents.
Key features of the draft NCD Convention include:
- Coverage of all transport modes (road, rail, sea, and air), applicable to both unimodal and multimodal shipments where either the origin or destination country has ratified the convention.
- A requirement that transport documents subject to the NCD Convention must include a clear annotation and basic information (similar to the FBL).
- Voluntary application: the convention will apply only to transport documents where the consignor and transport operator mutually agree to be bound by its terms.
- Recognition of electronic negotiable cargo records, such as the eFBL, as enforceable under the convention.
The NCD Convention addresses only negotiability and will not alter existing international conventions, regional agreements, or national laws governing transport operations or cargo liability.
The final draft of the convention, along with an accompanying report, will soon be made available on the UNCITRAL Working Group VI public website. The draft will be presented for approval at the upcoming UNCITRAL meeting in Vienna this July. Once approved, it will be recommended to the UN General Assembly for ratification. The convention will enter into force after being ratified by at least three countries. Meanwhile, Working Group VI is expected to meet for two more sessions to finalize the explanatory note accompanying the convention.
This historic convention will be a milestone for global trade, providing much-needed legal clarity and boosting confidence in the use of multimodal transport documents across the world.
