CargoX enables breakthrough FIATA multimodal eFBL pilot under draft UN convention on negotiable cargo documents

In the complex world of international transportation, fragmented processes and administrative hurdles have long hindered efficiency. Traditionally, each leg of a cargo journey requires separate unimodal documents, causing delays and increasing complexity. 

This complexity might soon end! 

Working Group VI of the United Nations Commission on International Trade Law (UNCITRAL) is currently developing a convention on negotiable cargo documents. As a new negotiable document of title, a negotiable cargo document would perform similar functions as a maritime bill of lading but apply to the carriage of goods by any mode of transport, whether in a multimodal or unimodal context. Under the draft convention, the default rule is not to issue a brand-new document, but rather to annotate an existing transport document that already meets the minimum information requirements. It is envisaged that the FIATA Multimodal Bills of Lading already meet these requirements.

During the 45th session of the UNCITRAL Working Group VI, a landmark pilot project demonstrated this new era of seamless integration: the successful use of fully electronic FIATA Multimodal Bills of Lading (eFBLs) covering road, rail, and sea transport - all within a single digital framework! 

This breakthrough, powered by the CargoX Platform’s blockchain-based infrastructure, marks a revolutionary advancement - uniting multiple transport mode document processes into a single, secure, and fully digitalised document workflow.

The successfully concluded pilot provided invaluable insights for the ongoing work of UNCITRAL Working Group VI, serving as a case study for the preparation of its "Negotiable Cargo Document" legal framework. Hereby, CargoX demonstrated how private-sector innovation could align with international legal efforts to modernize trade documentation.

Here are the details of how the pilot went down.

Pilot overview: a multimodal journey across borders

The pilot shipment involved transporting 2,000 tonnes of fertilisers from Turkmenistan to Romania, traversing road, rail, and sea routes, without any reliance on paper documentation. The Caspian Container Company, a leading international transport company, was in charge of the transport. 

Every stage - from initial issuance to final surrender, and everything in between  - was conducted online, in line with the draft UN convention on negotiable cargo documents, which reflects the same principles and standards as contained in the UNCITRAL Model Law on Electronic Transferable Records (MLETR). 

The effort aimed to explore the feasibility, benefits, and readiness of adopting electronic negotiable cargo documents in real-world scenarios. 

Implementation steps: streamlining the process

The pilot was conducted within the following steps: 

Step 1: Issuance of the eFBL

A FIATA member freight forwarder issued the electronic FIATA Multimodal Bill of Lading (eFBL) through the CargoX Platform. 

The document was fully FIATA standards compliant and seamlessly integrated multimodal transport terms. 

Step 2: Electronic possession and title transfer

The eFBL was digitally transferred on the CargoX Platform from the freight forwarder to the shipper/seller. The title was securely transferred to the buyer. These processes were executed with blockchain-backed immutability, guaranteeing integrity and authenticity of the records. 

Step 3: Surrender for cargo release

Upon the arrival of the shipment in Romania, the buyer electronically surrendered the eFBL on the CargoX Platform for the release of the fertilizers, completing the transaction without any physical documents changing hands. 

Key benefits and implications

The pilot’s success underscored the significant benefits of electronic document management over traditional paper-based methods:

• Speed: Document issuance, transfer, and surrender were executed in real-time, significantly reducing delays often encountered in paper workflows.

• Security: The blockchain infrastructure ensured that the eFBL was tamper-proof, verifiable, and compliant with international legal frameworks.

• Reliability: Being a title document, the data as stated by the eFBL would be considered most reliable. One eFBL covering door to door transportation would allow all stakeholders in the global supply chain to work with the same set of most reliable data.

• Efficiency: Automated processes streamlined operations, reducing administrative burdens and courier costs while enhancing transparency across stakeholders.

The findings highlighted how electronic records could facilitate trade efficiency, reduce risks of fraud, and align with sustainable, paperless operations.

Participant insights

Ms. Andrea Tang, Legal Services Director FIATA, applauded the pilot’s success, stating: “This pilot marks a significant milestone in advancing digital trade, offering a practical demonstration of how electronic multimodal transport records, such as the eFBL, can streamline multimodal transportation along critical trade corridors. It highlights the transformative potential of digital data exchange to deliver unmatched speed, enhanced data security, and greater trust in global trade transactions. The inclusion of UNCITRAL’s draft legal provisions on Negotiable Cargo Documents underscores the immense opportunities afforded by a robust legal framework. Together with the technical interoperability enabled by the eFBL standard, this initiative sets a promising course for more efficient and effective digital supply chains.”

Mr. Gadam Charyyev, representing the Caspian Container Company, a participant in the pilot, shared his experience: "We found the electronic processing of the multimodal bill of lading to be highly effective and aligned with our expectations. The CargoX Platform streamlined our operations and opened up new possibilities for further automation and efficiency. This pilot is a testament to the transformative power of digital solutions in global trade logistics."

Mr Peter Kern, VP of Sales, CargoX, the blockchain platform provider, added: “The success of this pilot not only showcased CargoX Platform’s eFBL technological capabilities, but also reinforced the importance of public-private collaboration in shaping the future of trade documentation. This pilot paves the way for the broader adoption of electronic negotiable documents, signaling a new era of efficiency and transparency in global trade.”

About UNCITRAL negotiable cargo document efforts

UNCITRAL Working Group VI is currently developing a new convention on negotiable cargo documents. While bills of lading have been widely used as documents of title in the maritime sector, transport documents issued by rail, road and air carriers (often known as “consignment notes”), which are typically non-negotiable, cannot serve that function. The new instrument intends to create a new type of document of title entitled “negotiable cargo document”, which could perform an analogous function as a maritime bill of lading for the carriage of goods for any mode of transport in a multimodal or unimodal context.The new instrument also provides a legal framework for the recognition and use of negotiable electronic cargo records. It is expected that UNCITRAL will approve the new convention in July 2025 and the United Nations General Assembly will adopt it in late 2025. For more information, see the document Fact sheet: UNCITRAL project on negotiable cargo documents.

• UNCITRAL Working Group IV 

• Fact sheet: UNCITRAL project on negotiable cargo documents

• UNCITRAL WG VI: Draft provisions for a new instrument on negotiable cargo documents

About FIATA

FIATA International Federation of Freight Forwarders Associations is a non-governmental, membership-based organisation representing the freight forwarding industry. Also known as the ‘Architects of Transport’, FIATA has Association Members and Individual Members in some 150 countries. FIATA has consultative status with the United Nations Economic and Social Council (inter alia ECE, ESCAP, ESCWA), the United Nations Conference on Trade and Development, and the UN Commission on International Trade Law. FIATA is recognised as representing the freight forwarding industry by many other governmental organisations, governmental authorities, and private international organisations in the field of transport. 

• More information at fiata.org

About Caspian Container Company

Caspian Container Company (CCC), based in Switzerland, specializes in container shipping and logistics across the Greater Caspian Region, including sea, rail, and land transport. Operating in 12 countries, CCC provides services like warehousing, customs brokerage, and container trading to connect the region with global trade.

• More at caspian-container.ch 

About CargoX

CargoX is an independent supplier of the CargoX Platform for Blockchain Document Transfer (BDT) – a public, neutral blockchain-based original document transaction solution for global economic operators and governmental entities. The CargoX Platform provides the world’s most secure and confidential transfer of electronic trade documents (eTD), facilitating efficient global trade processing with optimized document flows. The CargoX Platform is used by more than 135,000 companies worldwide, and they have sent more than 8 million electronic trade documents to date. 

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