Baltimore Automaker Solutions, EU Farmer Protests, Cocoa Prices Go Up

2024-03-30 00:14:32

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5Speaker 5
00:02.26 – 00:06.74

The fatal bridge collapse in Baltimore is complicating business for the auto industry.

4Speaker 4
00:07.30 – 00:11.08

The port normally handles more cars than any other in the U.S.

5Speaker 5
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So how are vehicles being transported to dealers?

4Speaker 4
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I'm Aisha Roscoe.

5Speaker 5
00:15.72 – 00:18.86

And I'm Scott Simon and this is Up First from NPR News.

4Speaker 4
00:21.38 – 00:26.34

European farmers are mad and protests on the continent have turned violent.

5Speaker 5
00:26.34 – 00:31.86

They want the EU to ease up on environmental laws and clamp down on cheap Ukrainian imports.

4Speaker 4
00:32.42 – 00:34.46

So what's being done to end the crisis?

5Speaker 5
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And better save up for the chocolate Easter bunnies and mini eggs this year.

4Speaker 4
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Cocoa prices are on the rise and it's been expensive to satisfy that sweet tooth.

5Speaker 5
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So please stay with us.

00:45.58 – 00:47.86

We have the news you need to start your weekend.

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Her latest research into the intimate relationships people are having with chatbots.

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The pros and cons of artificial intimacy.

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4Speaker 4
01:39.78 – 01:45.24

The port of Baltimore handles more cars and light trucks than any other port in the U.S.

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But after the devastating bridge collapse, most of it is now blocked.

5Speaker 5
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So how are automakers planning to get their vehicles from ships to dealers?

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NPR's Camilla Dominoski joins us.

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Camilla, thanks so much for being with us.

2Speaker 2
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Thanks for having me.

5Speaker 5
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What kind of delays have you learned about?

2Speaker 2
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Mostly, I've learned that it is still too soon to say what kind of delays we're looking at.

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A lot depends on how long the port stays mostly blocked.

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That's going to determine what the workarounds are for companies and so what the impacts are.

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Companies like Mazda and Mercedes, they say they're still looking at their options.

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But we know this is harder for them than rerouting a container.

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Baltimore is not a particularly big port when it comes to processing containers.

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But like you mentioned, it's very significant for vehicle imports and exports.

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Handled nearly 850,000 of them last year.

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And it's not just volume.

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It takes special ships to move these vehicles.

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They're called roll-on, roll-off, or row-row vessels.

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And not every port is capable of handling them.

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And then once the vehicles come off the ship,

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there is really important processing that has to happen.

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This includes adding parts, installing accessories on the vehicles.

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There's inspections.

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There's paperwork that has to happen before a vehicle gets the window sticker.

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And that happens at the port.

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And if you can't do that, even if you've gotten them off the ship,

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you wouldn't be able to sell the car.

5Speaker 5
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What are the potential options?

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What are the alternatives?

2Speaker 2
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Yeah, from my conversations, there's three that really stand out.

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One is there is a part of the Baltimore port that is still open.

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Right at the mouth of the harbor,

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there's a terminal that Volkswagen and BMW use for their vehicles.

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And that terminal has confirmed that they have a capacity to accept other vehicles too.

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Second, companies could unload their vehicles at another port altogether

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and then drive them to Baltimore for the second part of the process, the processing.

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I talked to the Port of New York and New Jersey and Newark.

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They said they have been in conversations about this,

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that they could take vehicles off a ship

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and put them right on a car carrier bound for Baltimore.

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And Scott, one advantage of both of those approaches for Baltimore

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is it would still support jobs at the port, even while ships can't get through.

5Speaker 5
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But you mentioned three options.

2Speaker 2
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Yeah, the other is companies could use ports that are much farther away

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where they are already processing their vehicles.

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So for instance, there is the Port of Brunswick in Georgia.

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It's a long way from Baltimore,

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but the port says they have had conversations about being a backup option.

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And there are other ports up and down the East Coast that are also good candidates.

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They're places that companies are already doing

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this vehicle processing for other parts of the U.S. market.

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It would mean a longer drive to dealerships,

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but a lot of ships go up and down the East Coast and stop at multiple ports,

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so it might not require a detour at sea.

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And it would mean the carmaker could unload and process the vehicle at the same port

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in the same place they already use basically their normal process until the drive.

5Speaker 5
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However, does this mean that Baltimore could lose out

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on this important business in the long term?

2Speaker 2
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People have really emphasized to me this would be an interim solution.

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Baltimore's location right in the middle of the East Coast,

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the expertise and the equipment that Baltimore has for these kinds of vehicles in particular,

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that will still be there in the future.

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I spoke to one supply chain expert who was very confident that this was not going to

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hurt the port's long-term outlook.

5Speaker 5
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And here's Camilla Dominoski.

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Thanks so much for being with us.

2Speaker 2
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Thank you.

4Speaker 4
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European farmers clash with police in Brussels this week,

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the latest in a string of protests that have rocked the continent for months.

5Speaker 5
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They say they want changes to European Union agricultural policies.

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Terry Schultz joins us now from Brussels.

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Terry, thanks for being with us.

1Speaker 1
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Good morning, Scott.

5Speaker 5
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What's behind these protests?

1Speaker 1
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Well, basically, farmers say their expenses are too high and the prices they get paid

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are too low to earn a decent living.

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So they're determined to pressure officials into changing the laws.

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This last protest on Tuesday saw hundreds of tractors block the area around European

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Union headquarters where agricultural ministers were meeting.

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Road traffic was absolutely impossible.

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And even some metro stations were closed as police tried to keep the chaos contained.

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Let's listen to the scene.

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And a warning to listeners.

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It is the sound of an explosion.

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So what you're hearing here is a clash between hundreds of protesters and riot police.

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There were fireworks being thrown.

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Farm equipment was spraying liquid manure everywhere.

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Water cannons were shooting back at the farmers.

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There was tear gas being sprayed by police.

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Protesters were burning metro stations.

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And a couple of months ago, they even toppled a historic statue outside the European Parliament.

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And law enforcement officers and protesters are regularly injured.

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So these are pretty big disturbances.

5Speaker 5
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What would they like the EU to do or do less of?

1Speaker 1
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Both.

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Complaints differ based on where the farmers are from.

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But many center on getting the EU to soften environmental regulations to limit competition

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from outside the bloc, which includes ending negotiations they demand for free trade deals

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with countries in Latin and South America.

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And as you mentioned, this is a really big one.

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They want to lower the administrative burden on producers to deal with what they feel are

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just too many rules.

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And another problem cited by some farmers, particularly in the east, is an exemption

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that's been granted for Ukrainian goods to enter the EU market tariff-free, which, of

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course, keeps the prices pretty low.

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And this was to help Ukraine after Russia launched the war.

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But it's been met with bitter opposition by farmers who say a lot of these goods don't

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just transit through their territory, but stay in their markets.

5Speaker 5
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Are the protests working?

1Speaker 1
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Well, you know, these protests are getting a lot of attention and they are getting some

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concessions.

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The agricultural lobby is very powerful in Europe, and especially when you've got thousands

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of farmers and hundreds of tractors blocking everything.

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Here's Belgian Deputy Prime Minister David Clarenval after that Tuesday meeting when

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the latest protest occurred.

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Belgium is currently the rotating EU president, so they chair these meetings.

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You'll hear him here through an interpreter.

2Speaker 2
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The voice is clearly heard.

3Speaker 3
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The European Commission, the Belgian presidency, all member states are committed to meet the

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legitimate concerns of our farmers.

1Speaker 1
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So far, some countries have passed exemptions from certain taxes, especially on fuel.

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They've suspended some of the stricter rules on pesticide use, and some have provided more

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direct financial aid to farmers.

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But these very disruptive demonstrations also seem to be costing farmers empathy among the

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general public because, as I can tell you firsthand, they inevitably create a very big,

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very smelly and dangerous mess.

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However, since they seem to be having some impact on decision makers, I expect them to

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continue.

5Speaker 5
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Well, good luck at those demonstrations, Gary Shilts and Brussels.

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Thanks very much for being with us.

1Speaker 1
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You're welcome, Scott.

4Speaker 4
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Chocolate lovers may have noticed they're paying more for treats lately.

5Speaker 5
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That's because the cost of cocoa is surging fast.

4Speaker 4
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NPR's Alina Seljuk is here to tell us why.

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Good morning.

3Speaker 3
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Hello, hello.

4Speaker 4
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So I was, you know, I buy chocolate bunnies and all this stuff for my kids.

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They love it.

3Speaker 3
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For Easter.

4Speaker 4
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But it costs a lot.

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Like, what's going on?

3Speaker 3
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So what it boils down to is there's been a dramatic drop in supply.

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The world is facing the biggest deficit of cocoa in decades.

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Most of cocoa beans are grown in West Africa, about two thirds of them, and most of it in

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Ivory Coast and Ghana.

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And farmers there have been facing extreme weather, changing climate patterns, which

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have just decimated crop harvests.

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We're talking heavy rains, floods, then dry season with intense winds, just wrong things

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at the wrong time.

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All of this has exacerbated problems with pests and diseases.

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And not just for one crop season or even two crop seasons.

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Cocoa harvests are expected to fall short for the third year in a row.

4Speaker 4
10:19.50 – 10:20.12

Oh, my goodness.

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That doesn't sound good.

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So not enough cocoa means companies that make chocolate are having to figure this out and

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then pay a lot of money to get their hands on it?

3Speaker 3
10:32.46 – 10:33.80

Yes, that's exactly what's going on.

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And then on top of that, you add market speculators, which is, you know, traders trying to make

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a quick buck on this whole cocoa insanity.

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And what you see is cocoa prices just growing and growing.

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Right before Valentine's Day, they hit an all-time record from 1977.

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That's a long time ago.

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Then they just kept going.

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Last week, one cocoa price hit $10,000 per metric ton.

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Just in time for Easter, too.

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To sum it up, cocoa prices more than doubled in just three months and more than tripled

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in the past year.

4Speaker 4
11:05.80 – 11:12.02

So is this why I'm seeing, you know, candy companies offering Easter bags with like extra

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gummy candies and marshmallows instead of chocolate?

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Like, is this all about cocoa prices?

3Speaker 3
11:18.80 – 11:23.02

Well, to be clear, surveys say people like this, that people love jelly and candy coated

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and gummy.

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So maybe that's part of it.

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But yes, big chocolate brands have been adjusting to this new world of extremely expensive cocoa.

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We've seen companies like Mars just straight up shrinking the size of some of their chocolate

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bars.

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We've seen KitKat really lean into those non-chocolate flavors like they've got a

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lemon crisp or there's a new chocolate frosted donut flavor.

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But mostly brands like Nestle, Hershey, Cadbury, they've just been, you know, raising prices

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actually for months.

4Speaker 4
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So how much are we talking about?

3Speaker 3
11:54.46 – 11:55.42

Quite a bit.

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Price of chocolate at major U.S. stores has increased nearly 15% since the start of last

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year.

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That's according to an analytics firm, DataWeave.

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For comparison, non-chocolate candy inched up just 4% in that time.

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So 15% versus 4%.

4Speaker 4
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So is there any resolution in sight or am I going to have to start really saving up

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for that chocolate splurge?

3Speaker 3
12:18.78 – 12:20.64

I think you better start saving up.

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So to fix the shortage of cocoa, a couple of things could happen.

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There could be a miraculously healthy harvest all of a sudden, which seems unlikely.

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Or it will take a while.

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You know, it takes years for newly planted trees to start producing cocoa beans.

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Companies that make chocolate are saying they're planning to keep raising prices.

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And the interesting thing is that people have not been cutting back on chocolate despite

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these higher prices.

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You know, it's an indulgence.

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People maybe expect to pay more.

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There's a whole word for it, right?

12:49.12 – 12:49.60

Chocoholic.

12:49.80 – 12:51.28

People are crazy about chocolate.

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So that's a big question, whether people will start scaling back or maybe we'll start

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seeing just like more and more really tiny chocolate bars instead of the big ones, which

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frankly, maybe we could all use.

4Speaker 4
13:03.80 – 13:06.98

Well, I mean, for my kids, since they're not paying for it, they don't care.

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So that's another way to solve the problem.

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That's NPR correspondent Alina Seljuk.

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Thank you so much for joining us.

3Speaker 3
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Thank you.

4Speaker 4
13:20.74 – 13:24.42

And that's Up First for Saturday, March 30th, 2024.

13:24.84 – 13:26.06

I'm Aisha Roscoe.

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13:26.14 – 13:26.92

And I'm Scott Son.

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Tomorrow on Up First, who is the piano man in China who chooses to play in locations

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Yes, find your station at stations.npr.org.

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