THE conflict between Israel and Palestine, starting on Oct 7, 2023, has resulted in over 27,000 Palestinian deaths and at least 57,000 injuries in Gaza, according to the latest data from the Gaza Health Ministry.
Malaysia, known for its vocal advocacy of Palestinian rights, has stood firm in expressing solidarity with the Palestinian struggle, particularly in the face of over 75 years of oppression.
On Dec 20, 2023, Prime Minister Datuk Seri Anwar Ibrahim announced an immediate restriction on Israeli-flagged or Israel-associated vessels from docking or loading cargo in Malaysian ports.
This decision was a direct response to the Zionist regime's harsh actions against the Palestinian people, condemning violations of international law and humanitarian principles.
It was triggered by the impending arrival of Zim Integrated Shipping Services Ltd, Israel's largest shipping company, at Westports, Port Klang, on Dec 26, 2023, prompting the Ministry of Transport to impose a permanent ban on the company. ZIM has been docked in Malaysia since 2002. This restriction ensures that Malaysia will no longer accept ships flying the Israeli flag or ships en route to Israel to load cargo in its ports.
The immediate enforcement aims to uphold the country's moral principles, support humanitarian goals, and minimise disruption to trade and shipping activities in Malaysia.
While the maritime industry players, especially port authorities, have acknowledged and fully accepted the announced decision, the government anticipates other impacts that were identified before the immediate restriction was imposed.
One of the potential impacts is from the perspective of diplomatic relations with member countries of the International Maritime Organization (IMO). Malaysia was recently re-elected as an IMO member under Category C for the 2024-2025 term.
The direct but inconspicuous impact is specific to Israeli-flagged ships and does not reflect a general policy affecting compliance with international maritime regulations.
However, in preparation for the upcoming IMO member election for the 2026-2027 term, classification within the IMO is based on various factors beyond diplomatic relations, such as a member country's contributions to the IMO, compliance with maritime safety, and commitment to international maritime conventions.
Despite the perceived isolated impacts, Malaysia's immediate restriction could prompt IMO member countries, especially those that are pro-Israel, to reconsider their foreign policy in trade or diplomacy with Malaysia in the future.
Potential diplomatic isolation or repercussions from pro-Israel countries unsupportive of Malaysia's stance, considering the restriction as a violation of international law and human rights, may arise.
Conversely, among pro-Palestinian nations criticising the Zionist regime's actions, this immediate restriction positions Malaysia as a staunch supporter of Palestine. It holds the potential to strengthen diplomatic relations with those who share similar solidarity.
This indirect effect enhances Malaysia's image as a principled nation in global issues, garnering support and respect from like-minded countries and international organisations.
Analysts from The Maritime Executive, LLC., also anticipate that other Islamic nations in Asia may follow Malaysia's lead in imposing similar restrictions.
Through semi-structured interviews conducted by the Maritime Institute of Malaysia (MIMA) with random samples among key players in the shipping industry, the responses indicate a divided opinion among industry stakeholders.
While the government emphasises that the decision will not affect Malaysia's trade activities, as per recent statistics from the Department of Statistics between 2022 and October 2023, industry players are concerned about the future of the shipping industry in Malaysia.
Despite the general expectation of minimal immediate economic impact on trade and shipping, there is potential for unforeseen long-term consequences.
The uniqueness and complexity of the shipping industry, with its multi-layered stakeholders and the concept of 'flag of convenience,' add to the intricacies.
The 'flag of convenience' refers to registering a ship in a country different from the shipowner's country, often a country with open registration or one allowing foreign-owned ships to register.
This is done to reduce operational costs, avoid the regulations of the owner's country, escape taxes, evade strict environmental regulations, and hire low-wage international crew members.
A ship must operate under the laws of the country under whose flag it is registered, thus shipowners can register under a more convenient and advantageous flag.
Therefore, due to the complexity of the shipping industry and the 'flag of convenience' concept, in the context of this restriction, a ship's owner could be from Country A, its operations controlled by a ship management company from Country B, while it flies the flag of Country C, subjecting it to the laws and regulations of Country C.
This ship could be leased by cargo owners from Countries D, E, and F, transporting their goods to various countries like G, H, and I.
The interconnectivity in the shipping industry makes it vulnerable to disruptions if a country imposes restrictions on ships from another country, potentially affecting the interdependent logistics supply chain in the shipping industry. For the record, based on the latest Automatic Identification System (AIS) data, the first ZIM ship affected is the ZIM Rotterdam, registered in Liberia with a cargo capacity of 10,000 TEU, was scheduled to dock in Malaysia on Dec 24, 2023, after its voyage from China.
On Dec 26, 2023, ZIM Europe, registered in Liberia with a cargo capacity of 5,600 TEU, which sailed from Africa, was scheduled to make a port call in Malaysia.
Additionally, on Jan 10, 2024, ZIM Tampa, registered in Liberia with a cargo capacity of 6,500 TEU, was also recorded for a port call.
As of now, ZIM has not publicly commented on this restriction, and Malaysia is not listed as a destination on ZIM's website.
However, the Malaysian Ministry of Transport has taken proactive steps to collaborate with affected shipping and logistics companies, demonstrating the commitment and readiness of the ministry to address the immediate impact of this restriction and minimise any adverse effects on local businesses, which heavily depend on shipping and logistics services.
The writer is Associate Professor and Director of Research, Maritime Institute of Malaysia (MIMA)