Negotiable air cargo documents being developed

A first draft of negotiable air cargo documents that would allow the transfer ownership of goods while in transit is expected to be presented to the United Nations next year.

The new document is being developed by a United Nations Commission on International Trade Law (UNCITRAL) working group consisting of delegates from UN member states as well as invited IGOs and NGOs.

Instead, it provides a legal framework for transport operators to issue negotiable cargo documents/electronic records at the request of shippers/consignors.

Unlike ocean bills of lading, transport documents issued by rail, road and air carriers, which are often known as consignment notes or air waybills in the case of air cargo, are not used as documents of title and cannot be transferred to another party during transport.

The negotiable cargo document under development at UNCITRAL is intended to serve as a document of title to fill this gap in multimodal and unimodal transportation not involving a maritime leg, said a report.