## Company Profile Freight Links International (Pte) Ltd. — Sri Lanka-based freight forwarder (contact: Dilrani Abayasekara, WCA Coordinator). Public web presence at freight-links.com. As a Sri Lanka forwarder operating from Colombo the firm likely handles sea and air export/import bookings, customs clearance, transshipment handling via Port of Colombo, and related supply‑chain services for exporters in apparel, tea, coconut and plantation products. Exact scale not disclosed in public memo; WCA Coordinator title indicates participation in global forwarding networks (WCA), which suggests a focus on cross‑border shipments and partner networks rather than purely domestic freight. ## Pain Points ## Intel Summary === MULTI-DIMENSION RESEARCH === === 1. COMMODITY TRENDS – SRI LANKA TEA, APPAREL, RUBBER, COCONUT (FOCUS TO 2026) === **Macro export picture** - Total exports in 2025 reached about **US$17.25 bn**, up **5.6% YoY** vs 2024, with merchandise exports at **US$13.58 bn (+6.3%)** and services at **US$3.67 bn (+2.8%)**. ([ft.lk](https://www.ft.lk/top-story/Export-earnings-up-5-6-to-17-2-b-in-2025/26-787471?utm_source=openai)) - Top merchandise earners in 2025: **Apparel ~US$4.9 bn (+5.3% YoY)**; **Tea ~US$1.5 bn (+5% YoY)**; **Coconut & coconut-based products ~US$1.2–1.23 bn (+~43% YoY)**. Rubber-based exports declined. ([ft.lk](https://www.ft.lk/top-story/Export-earnings-up-5-6-to-17-2-b-in-2025/26-787471?utm_source=openai)) - The Export Development Board (EDB) has set a **US$20 bn export target for 2026** (c. +10–16% vs 2025, depending on metric), with **merchandise >US$15.7 bn** and **services ~US$4.3 bn**. ([lankawebsites.com](https://lankawebsites.com/blog/imports-exports/2026-export-forecast-for-sri-lanka-building-on-172b-success?utm_source=openai)) --- #### Tea **Volumes & values** - 2025 tea exports: **257.4 million kg**, up **4.7%** vs 2024 (245.8m kg). Export earnings were about **LKR 453.3 bn (~US$1.51 bn)**. ([lankawebsites.com](https://lankawebsites.com/blog/imports-exports/tea-exports-from-sri-lanka-evergreen-guide-to-global-markets-and-challenges?utm_source=openai)) - Jan–Aug 2025: tea export volume **174.5m kg** for **LKR 306 bn (~US$1.2 bn)**, up **~7% in volume** and **~6% in value** YoY. Average FOB price around **US$5.88/kg**. ([lankawebsites.com](https://lankawebsites.com/blog/imports-exports/tea-exports-from-sri-lanka-evergreen-guide-to-global-markets-and-challenges?utm_source=openai)) - While full-year 2025 was positive, **December 2025 volumes and earnings dipped (around -19% YoY in value)** due to weaker demand and price pressure. ([lankawebsites.com](https://lankawebsites.com/blog/imports-exports/2026-export-forecast-for-sri-lanka-building-on-172b-success?utm_source=openai)) **Product mix & price trends** - Shift **away from bulk tea**: exports of **bulk tea declined**, while demand is growing for **tea in value-added/consumer-ready formats (packets, tea bags, specialty and flavored teas)**. ([lankawebsites.com](https://lankawebsites.com/blog/imports-exports/tea-exports-from-sri-lanka-evergreen-guide-to-global-markets-and-challenges?utm_source=openai)) - Industry commentary notes **margin pressure**: global buyers are extremely price-sensitive, with Sri Lanka relatively **high-cost vs India and Kenya**, forcing focus on premium positioning rather than volume competition. ([reddit.com](https://www.reddit.com/r/srilanka/comments/1jlo7dg?utm_source=openai)) **2026 outlook / demand signals** - Despite short-term price softness, Sri Lanka remains a **top global tea exporter**, with 2025 improvements in both volume and earnings versus 2024 and continued demand from **Middle East, CIS, and North African markets**. ([lankawebsites.com](https://lankawebsites.com/blog/imports-exports/tea-exports-from-sri-lanka-evergreen-guide-to-global-markets-and-challenges?utm_source=openai)) - Policy documents for 2024–2026 emphasize **yield improvement and quality**, rather than area expansion, with government investment in fertilizer access and replanting to stabilize production through 2026. ([npd.treasury.gov.lk](https://npd.treasury.gov.lk/files/PIP%202024-2026.pdf?utm_source=openai)) **Implications** - 2026 demand appears **stable to moderately positive in volume**, but with **limited upside on price** in mainstream grades; upside is in **specialty and branded Ceylon tea** and **ready-to-drink or wellness-oriented formats**. --- #### Apparel (textiles & garments) **Sector performance** - Apparel remained Sri Lanka’s **largest single export earner**, with **~US$4.9 bn in 2025, +5.3% YoY**. ([ft.lk](https://www.ft.lk/top-story/Export-earnings-up-5-6-to-17-2-b-in-2025/26-787471?utm_source=openai)) - Apparel & textiles still account for roughly **half of merchandise export earnings** (around 52% historically; still near this level according to EDB and Central Bank 2025/26 reporting). ([tradingeconomics.com](https://tradingeconomics.com/sri-lanka/exports?utm_source=openai)) **Market & demand context** - Recovery in **US and EU apparel orders** from the 2022–23 slump drove this growth; however, global brands continue **sourcing diversification** (China+1, multi-country sourcing), which benefits Sri Lanka but also intensifies competition from **Vietnam, Bangladesh, India, and emerging ASEAN suppliers**. ([cpscp.org](https://cpscp.org/import-origin-diversification-from-china-reshapes-sourcing-in-2025/?utm_source=openai)) - Sector reports highlight **higher unit values** (Sri Lanka positioned as a higher-compliance, mid‑to-higher price supplier) but **pressure on FOB pricing** due to: - Elevated freight & insurance costs on Asia–Europe lanes (Red Sea / Cape diversions). - Retailers’ margin stress and inventory normalization in 2025–26. ([spglobal.com](https://www.spglobal.com/energy/en/news-research/latest-news/shipping/010926-containers-quarterly-asia-europe-enters-2026-with-seasonal-firmness-structural-uncertainty?utm_source=openai)) **2026 trajectory** - Export-forecast commentary suggests **continued single-digit growth in apparel exports in 2026**, assuming no major demand shock in key markets; EDB sees apparel as central to hitting the US$20 bn export target. ([lankawebsites.com](https://lankawebsites.com/blog/imports-exports/2026-export-forecast-for-sri-lanka-building-on-172b-success?utm_source=openai)) **Implications** - For 2026, **volumes likely modestly up**, but **realization per garment under pressure**; buyers may push **near‑shoring in parts of Europe** while keeping Sri Lanka in a **diversified Asia portfolio** for higher-compliance orders and specialized product. --- #### Rubber and rubber-based products **Recent performance** - Rubber-based exports **declined in 2025**, with sector data indicating a **drop of around 5–8% YoY** in export earnings (e.g., from ~US$1.0 bn range down by mid‑single digits), driven largely by weaker demand for **tires and industrial rubber products**. ([lankanewsweb.net](https://lankanewsweb.net/archives/168054/export-growth-masks-structural-fragility-in-sri-lankas-trade-engine/?utm_source=openai)) - Within the plantation group, rubber lags tea and coconut: recent academic and policy analysis frames rubber as **structurally challenged** by: - Lower global prices vs 2021 peaks. - Competition from **Thailand, Indonesia, Vietnam** in natural rubber. - Limited replanting and productivity issues. ([slfue.org](https://slfue.org/docs/2025/Jan/30/file-20250130121049.pdf?utm_source=openai)) **Risk and outlook** - A mid‑2025 trade-policy risk assessment classifies **rubber and coconut products as “medium risk”** sectors for trade and regulatory changes, due to exposure to cyclical global manufacturing and auto demand (for rubber) and developing food-safety regimes (for coconut). ([lra.com.lk](https://lra.com.lk/wp-content/uploads/2025/05/new-trade-policy.pdf?utm_source=openai)) --- #### Coconut and coconut-based products **Explosive value growth** - The coconut sector is the **standout growth story**: - 2025 coconut and coconut-based export earnings hit about **US$1.23 bn**, crossing the **US$1 bn mark for the first time** and representing **~43% value growth vs 2024**. ([researchgate.net](https://www.researchgate.net/publication/400741189_The_Economic_Resilience_and_Strategic_Evolution_of_the_Sri_Lankan_Coconut_Sector_A_Comprehensive_Comparative_Analysis_of_Product_PerFORMANCE_AND_Global_Competitiveness_2023-2026?utm_source=openai)) - Growth is driven by **value-added products**: coconut oil (especially virgin and organic), desiccated coconut, coconut milk/cream, activated carbon, and coir/fiber products. ([researchgate.net](https://www.researchgate.net/publication/400741189_The_Economic_Resilience_and_Strategic_Evolution_of_the_Sri_Lankan_Coconut_Sector_A_Comprehensive_Comparative_Analysis_of_Product_PERFORMANCE_AND_Global_Competitiveness_2023-2026?utm_source=openai)) **Implications** - Among the four sectors, **coconut is the strongest positive outlier** on value growth; **tea is steady with modest upside**, **apparel is growing but margin‑squeezed**, and **rubber is comparatively weak**. **Sources – Dimension 1**: ([ft.lk](https://www.ft.lk/top-story/Export-earnings-up-5-6-to-17-2-b-in-2025/26-787471?utm_source=openai)) === 2. MARKET EVENTS – PORT OF COLOMBO, CAPACITY, TRANSSHIPMENT & RED SEA IMPACT (TO 2026) === **Throughput and capacity** - The Port of Colombo set **a new all‑time throughput record of 8.29m TEUs in 2025**, surpassing the previous high of 7.78m TEUs in 2024 (itself a **12.1% YoY increase vs 2023**). ([porttechnology.org](https://www.porttechnology.org/port-of-colombo-sets-throughput-record-in-2025/?utm_source=openai)) - 2024’s transshipment growth was **partly attributed to the Red Sea crisis**, as carriers optimized network configurations and used Colombo as a hub for India, Pakistan, and East Africa connections. ([maritimegateway.com](https://www.maritimegateway.com/colombo-port-establishes-a-new-transshipment-record/?utm_source=openai)) - The Sri Lanka Ports Authority (SLPA) is targeting to **surpass 9m TEUs** in 2026, with expansion via **East Container Terminal (ECT)** and **Colombo West International Terminal (CWIT)** pushing **installed capacity above 10m TEUs** once fully ramped. ([maritimegateway.com](https://www.maritimegateway.com/colombo-port-establishes-a-new-transshipment-record/?utm_source=openai)) **Operational performance** - Reports emphasize Colombo’s ability in 2025 to **retain transshipment volumes, attract additional vessel calls, and improve turnaround times**, highlighting effective coordination among SLPA, private terminal operators and regulators. ([porttechnology.org](https://www.porttechnology.org/port-of-colombo-sets-throughput-record-in-2025/?utm_source=openai)) **Red Sea / Suez disruptions and route shifts** - Since late 2023, Red Sea insecurity has led many global lines to **reroute Asia–Europe and Asia–Med strings via the Cape of Good Hope**, adding **7–14 days transit** and tightening effective capacity; this persisted into **Q1–Q2 2026**. ([ports.marinelink.com](https://ports.marinelink.com/ports/port/longview/news/red-sea-rerouting-continues-to-strain-global-shipping-capacity?utm_source=openai)) **Implications for Sri Lankan exports (tea, apparel, rubber, coconut)** - **Higher ocean transport costs and longer lead times** are now **structural features** on Asia–Europe lanes through at least late 2026, which: - Compress FOB margins for **price‑sensitive bulk commodities** (tea, rubber, basic coconut ingredients). - Strengthen the business case for **higher-value, branded or specialized exports** that can absorb higher logistics costs (branded tea, premium apparel, high-value coconut derivatives). **Sources – Dimension 2**: ([porttechnology.org](https://www.porttechnology.org/port-of-colombo-sets-throughput-record-in-2025/?utm_source=openai)) === 3. DEMAND SIGNALS – ASIA–EUROPE FREIGHT RATES, ROUTE CHANGES & APPAREL BUYER DIVERSIFICATION (2025–26) === **Asia–Europe container freight rates (2025–26)** - **Red Sea crisis / Cape diversions** caused global container freight rates to increase by around **130% between Nov 2023 and early Mar 2024**, with Drewry’s composite WCI peaking near **US$3,964 per 40ft** vs pre‑crisis levels. ([itf-oecd.org](https://itf-oecd.org/sites/default/files/repositories/red-sea-crisis-impacts-global-shipping.pdf?utm_source=openai)) - By early 2026: - Drewry’s WCI (all routes) in early April 2026 was around **US$2,287–2,309 per FEU (40ft)** – significantly below 2024 peaks but **above the 2019–early‑2023 “normal” range**. ([drewry.co.uk](https://www.drewry.co.uk/maritime-research-opinion-browser/world-container-index-assessed-by-drewry?utm_source=openai)) **Route changes & transshipment hubs** - Structural features of the 2026 market: - Majority of Asia–Europe services still **routing via the Cape of Good Hope**, adding **10–14 days** on average and tightening effective capacity. ([ports.marinelink.com](https://ports.marinelink.com/ports/port/longview/news/red-sea-rerouting-continues-to-strain-global-shipping-capacity?utm_source=openai)) **Buyer origin diversification – apparel and broader sourcing** - A 2025 global supply chain report on apparel finds that **US and EU brands are actively implementing sourcing diversification away from China**, shifting a larger share of orders to **India, Bangladesh, Vietnam and other Southeast Asian countries**. ([ustlfsci.hkust.edu.hk](https://ustlfsci.hkust.edu.hk/sites/default/files/2025-12/Global_Supply_Chain_Report_DEC2025_Apparel_0.pdf?utm_source=openai)) **Implications for Sri Lankan exports (2026)** - **Freight & logistics**: - Expect **Asia–Europe rates in the ~US$1,700–2,600/FEU band** through at least mid‑2026, with risk premia from Red Sea/Hormuz volatility. - **Lead times are structurally longer (by about 1–2 weeks)** on many routings. - **Apparel buyers**: - Continue to **diversify origins**: Sri Lanka is part of a **broader South Asian basket** rather than a sole pivot away from China. - **Commodity exporters (tea, rubber, coconut)**: - Elevated freight costs encourage **more value addition at origin** (packaged tea, coconut ingredients, branded products) and **discourage low‑margin bulk exports**. **Sources – Dimension 3**: ([ports.marinelink.com](https://ports.marinelink.com/ports/port/longview/news/red-sea-rerouting-continues-to-strain-global-shipping-capacity?utm_source=openai)) Sources: • Export earnings up 5.6% to $ 17.2 b in 2025 | Daily FT https://www.ft.lk/top-story/Export-earnings-up-5-6-to-17-2-b-in-2025/26-787471?utm_source=openai • Port of Colombo sets throughput record in 2025 - Port Technology International https://www.porttechnology.org/port-of-colombo-sets-throughput-record-in-2025/?utm_source=openai • Colombo Port establishes a new transshipment record | Maritime Gateway https://www.maritimegateway.com/colombo-port-establishes-a-new-transshipment-record/?utm_source=openai • Red Sea Rerouting Continues to Strain Global Shipping Capacity - Ports Directory https://ports.marinelink.com/ports/port/longview/news/red-sea-rerouting-continues-to-strain-global-shipping-capacity?utm_source=openai • Drewry - Browse Recent Opinion Articles - World Container Index - 02 Apr https://www.drewry.co.uk/maritime-research-opinion-browser/world-container-index-assessed-by-drewry?utm_source=openai • CONTAINERS QUARTERLY: Asia-Europe enters 2026 with seasonal firmness, structural uncertainty | S&P Global https://www.spglobal.com/energy/en/news-research/latest-news/shipping/010926-containers-quarterly-asia-europe-enters-2026-with-seasonal-firmness-structural-uncertainty?utm_source=openai)