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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