A Total Ban On Israeli Related Ships Calling At Ports! Permanent Blackout Of ZIM!

The Government of Malaysia announced on December 20 that it would prohibit all Israeli-owned and Israeli-flagged vessels, as well as any Israel-bound vessels, from calling at Malaysian ports (and prohibit any Israel-bound cargo ships from loading cargo in the country's ports). The ban is effective immediately and is in response to Israeli actions in the conflict with Hamas.

In a statement issued on December 20, the office of Malaysian Prime Minister Anwar Ibrahim also made a special point of reminding that a decision has been taken to restrict and prohibit vessels belonging to the Israeli shipping company, Star (ZIM) Shipping, from calling at any

Malaysian port. Immediate action will be taken to impose a permanent ban on the company with immediate effect.

In addition, Malaysia has also "prohibited any vessel bound for Israel from loading cargo in Malaysian ports.".
Notably, it also banned any vessel that has an Israeli port of call on its route, which means that any other shipping company that has a port of call in Israel is banned from calling at Malaysian ports. This gives all shipping companies the dilemma of choosing between the two.

However, there is also the trickiest situation for freight forwarders, who signed long-term contracts with their clients before the sharp increase in freight rates. This meant that forwarders were under pressure to increase costs when transporting goods but were unable to adjust to the lower prices agreed upon with their customers. This situation not only affects the forwarder's profitability but can also lead to tensions with customers.

The statement said, "This sanction is a response to Israel's disregard for basic humanitarian principles, its violation of international law, and its continued massacres and brutalization of the Palestinian people."

Malaysia, which has a Muslim-majority population, does not recognize Israel. Anwar is considered one of the most outspoken leaders against Israel and its U.S. supporters, even though the U.S. remains Malaysia's main trading partner.

The Malaysian government said in a statement that it has allowed ships under the banner of Star of Israel to dock in the country since as early as 2002 and later extended that decision to allow them to load and unload cargo in 2005. "However, the government decided today (20) to reverse the past cabinet decision and not allow Israeli-flagged vessels to dock in Malaysia.",

According to Bloomberg 20, Israel's economy is dependent on maritime trade, but the country is not a major flag state, with its total number of ships dwarfed by larger flag states such as Panama, Liberia, and the Marshall Islands. Malaysia, on the other hand, has the second largest port in Southeast Asia, Port Klang, which occupies the confluence of the Straits of Malacca, known around the world as the Golden Shipping Line, and was ranked the 12th busiest port in the world in 2021.

However, shipping routes to and from Israel have been severely disrupted since mid-November, as Yemen's Houthis have escalated their attacks on "Israeli-related vessels" in the Red Sea. This has forced a number of shipping companies, including COSCO Shipping, Evergreen Marine, ONE, and OOCL, to stop bookings to Israel, or alternatively, to impose additional surcharges, even though the Israeli government said in October that it would provide compensation for ships damaged by the current round of Israeli-Palestinian conflict.