What problem does the earthworm find when everyone realizes the peach is out to sea? How does James help to solve the problem?

In Chapter 18, everyone is shocked to find that they are in the middle of the sea. The Earthworm proclaims that they are all finished, destined to drown, at least until James explains the peach is actually floating. Although the Old-Green-Grasshopper maintains that everything will be fine in the end, Earthworm tries to upset the others by insisting they are still in a bad situation - they have no food. James interrupts again by explaining that the entire ship is food - they can gradually eat the peach, and they will have no problem surviving for weeks and weeks without destroying the peach as a vessel. Earthworm, very flustered, now says that the problem is that there is no problem! The others joke with him that he is always looking for something to complain about. James and the creatures all begin to eat the peach, and find that it is simply delicious.