Strengthening Freight Forwarders’ Role in Multimodal Transport: The New NCD Convention
Why Does the NCD Convention Matter to Freight Forwarders?
Working Group VI of the United Nations Commission on International Trade Law (UNCITRAL) has developed a new convention on Negotiable Cargo Documents (NCDs), a critical legal instrument for the future of freight forwarding and the movement of goods in today's complex supply chains.
This convention aims to provide a harmonised legal framework for the use of negotiable transport documents across all modes, in both paper and electronic form. It reinforces the role of freight forwarders as carriers and supports modern, multimodal operations.
As some maritime stakeholders pushed for narrower frameworks that would exclude maritime transport from the scope of the Convention, FIATA, together with the Global Shippers Forum (GSF) and the ICC Banking Commission, successfully advocated for an inclusive approach that includes all transport modes (see the submission here). This multimodal approach is essential, providing a harmonised legal framework that can support complex and agile transport planning, particularly for territories reliant on hinterland transport and multimodal logistics chains.
The NCD Convention is a huge win for the freight forwarding and logistics industry. It fills a clear legal gap in multimodal transport in line with operational realities, supports trade finance for SMEs in emerging economies, and safeguards the role of forwarders in the digital era.
What Are the Benefits of the NCD Convention for the Industry?
The NCD Convention is an opt-in solution that brings legal clarity and practical tools that forwarders need to navigate increasingly complex global supply chains.
Key benefits include:
- Legal recognition of negotiable multimodal documents, including in electronic form, such as the electronic FIATA Multimodal Transport Bill of Lading (eFBL)
- A harmonised legal framework for use across jurisdictions and transport modes
- Strengthened legal standing for freight forwarders acting as contractual carriers
- Clear rules for documents of title that are compatible with existing transport liability regimes
These developments support efficiency, transparency, and the secure exchange of documents, all essential for digital transformation and trust in multimodal transactions.
What Can Association Members Do to Support the NCD Convention?
The success of the NCD Convention will depend on local and global industry engagement to demonstrate the importance for their governments to adopt the Convention. FIATA encourages its Association Members to take an active role in raising awareness on the NCD Convention's benefits on the local level and to support its adoption.
Action points include:
- Sharing information about the Convention and its benefits within your network
- Engaging with national authorities to raise awareness and promote ratification
- Supporting capacity building to ensure freight forwarders know how to make use of the new legal framework
FIATA stands ready to provide technical input, explanatory materials, and coordinated messaging. Now is the time to strengthen legal tools that empower freight forwarders in a digital and multimodal world.
Find out more about the NCD Convention by watching this short video and reading the UNCITRAL factsheet!