Our Company delivers exceptional value and quality products to our trading partners. With extensive distribution and expandable capacity, our core products are readily available.
Market Update Quarterly
Quarter 2 | Spring 2025
Summary: Restaurant Supply Product Pathway Ocean Freight Influenced by Global Conditions; U.S. Tariff Announcement Adds Separate Consideration
Manufacturing
Ground Logistics
Ocean Logistics
Raw Material Availability
Port Worker Strikes
Amazon Strikes
Cost
Armed Conflict
Diesel Fuel Cost
Tariffs
Adverse Weather
Warehouse Inventory
• Port Congestion : U.S. West Coast ports, particularly in Los Angeles and Long Beach, have experienced ongoing congestion due to labor negotiations and equipment shortages, leading to extended delivery timelines (Port of Los Angeles, February 2025) . • Freight Rate Volatility : While container prices showed some stability in late 2024, recent disruptions in the Red Sea region and capacity reductions by major carriers have caused price spikes (Journal of Commerce, March 2025) . • Weather-Related Delays : Extreme weather conditions, including storms affecting trans-Pacific and trans-Atlantic routes, have led to schedule inconsistencies. (Global Shipping Council, March 2025) . • Capacity Constraints : Ocean carriers have reduced available sailings to balance supply and demand, making it difficult for businesses to secure timely shipments (FreightWaves, February 2025) .
The global shipping industry has faced persistent challenges in the first quarter of 2025, impacting the supply chain for foodservice packaging products. The newly announced tariffs by the U.S. government are part of an updated trade policy. Increased demand, port congestion, and geopolitical instability have continued to put pressure on ocean freight rates and lead times. Major Trends & Issues: • U.S. Tariffs: On April 2, 2025, The White House announced a comprehensive tariff strategy, introducing a universal 10% tariff on all imported goods, effective April 5, 2025. The plan also introduced higher, country-specific "reciprocal" tariffs on approximately 60 nations, starting April 9, 2025. These additional tariffs were calculated based on perceived trade imbalances and barriers (MarketWatch, April 2025) . Given the recent developments, detailed tariff information is provided on page 3. For ongoing updates and the latest information, please visit ACR News.
Q2 2025 Market Update
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Summary: Key Updates – U.S. Tariffs
New U.S. tariffs target imports from key countries, impacting global markets
Key Updates: • On April 2, 2025, the White House announced a comprehensive tariff strategy, termed "Liberation Day," introducing a universal 10% tariff on all imports, effective April 5, with higher, country-specific tariffs commencing April 9. • As of April 9, 2025, the White House paused the sweeping reciprocal tariffs imposed last week, saying dozens of countries had reached out to negotiate new trade deals. • The announcement came as a relief to global markets, U.S. allies, and many advisers, following growing concerns over a potential global crisis. Despite easing some concerns, the President held steady on the 10% baseline tariffs and escalated tariffs on China to 125% • The administration asserts these measures aim to bolster domestic industries and address trade imbalances. Critics warn of potential inflationary effects and escalating trade tensions (Axios, Investopedia, April 2025) . • Tariff percentages are subject to change due to ongoing updates in trade regulations and international agreements . For ongoing updates and the latest information, please visit ACR News.
Country of Origin
April 2 Announcement
Amended April 9 Announcement
China
54%
125%
Cambodia
49%
Vietnam
46%
Sri Lanka
44%
Bangladesh
37%
Thailand
36%
Taiwan
32%
10% for 90 days while previously announced increased tariffs are paused.
32% 29% 26% 24% 24% 20% 17%
Indonesia
Pakistan
India
Japan
Malaysia
EU
Philippines
10% *Not an exhaustive list of all countries with increased tariffs.
Turkey
Anti-Dumping & Countervailing Duties Update: Country of Origin Product
Duties
Effective Date
China & Vietnam
Molded Fiber: Duties Assessed Variable by Supplier
04/01/2025
China
Aluminum Pans
271%
12/01/2024
Q2 2025 Market Update
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Summary: Foodservice Industry Outlook
The foodservice industry faces operational and economic challenges, impacting profitability and
efficiency despite steady consumer demand
• Shifting Consumer Behavior: Customers continue to prioritize convenience, with an increased reliance on carry-out, delivery and takeout services, putting additional demand on packaging solutions (Technomic Industry Report, March 2025) . • Sustainability Expectations: More municipalities are enacting regulations on single-use plastics, forcing restaurants to seek compliant, eco-friendly alternatives, which often come at a higher cost (Environmental Protection Agency, February 2025) . • Technology Investments: Many restaurants are turning to automation and digital ordering systems to offset labor challenges, leading to increased capital expenditures (Restaurant Business Online, March 2025) .
The foodservice industry is navigating a complex landscape in early 2025, with restaurants facing a range of operational and economic challenges. Despite steady consumer demand, several factors are impacting profitability and efficiency. Key Challenges: • Labor Shortages: Hiring and retaining staff remains a top issue, with wages rising and competition for workers increasing across the hospitality sector (National Restaurant Association, February 2025) . • Inflationary Pressures: Higher food costs and increased operating expenses—driven by supply chain disruptions and tariffs—are squeezing profit margins (Bureau of Labor Statistics, March 2025) .
Q2 2025 Market Update
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Key Takeaways – Q2 2025
Supply Chain Challenges – Global shipping disruptions, freight rate volatility, weather delays, and limited carrier capacity make securing restaurant packaging more difficult. Tariff Impact – Increased U.S. tariffs on global imports into the U.S. announced on April 2, 2025, will raise costs and may cause supply chain issues unknown at this time. The tariff situation continues to evolve, with ongoing developments and updates that could impact global trade dynamics. Foodservice Industry Pressures – Labor shortages, inflation, and shifting consumer preferences (more takeout & delivery) are increasing demand for packaging solutions. Sustainability Regulations – New municipal laws restricting single-use plastics are driving the need for eco-friendly packaging alternatives. Technology Investments – The foodservice industry is adopting automation and digital ordering systems to offset labor challenges and improve efficiency.
ACR’s Response to Tariffs – ACR’s response is grounded in years of strategic investment to diversify our supply base, across North America and globally, enabling us to leverage an agile, collaborative, and reliable network that includes domestic manufacturing and supports continued value delivery. As foreign governments evaluate their tariffs on U.S. imports, there may be potential to revise the recently implemented tariffs in response. We will continue to closely monitor these developments and provide timely updates as new information emerges. ACR’s Commitment – Providing innovative, high-quality packaging solutions that align with sustainability trends and off-premise dining needs. Reliability & Stability – ACR proactively manages supply chain challenges, adapts to market changes, and ensures competitive pricing and consistent supply for customers
ACR remains committed to providing reliable, high-quality foodservice packaging solutions despite industry challenges. Our investments in a diversified manufacturing base and proactive supply chain management ensure our customers receive the best products at competitive prices.
We Are ACR
Q2 2025 Market Update
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ACR©2025
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