The passengers had embarked on Malabar when a gale from the northeast drove the vessel's stern on to a reef. The water began to rise in the ship's stern section and the captain opted to beach the ship in a sandy bay on the opposite side of the harbor. However, the sand turned out to be loose and almost like quicksand, and it was decided to give the order to abandon ship. There was no loss of life. It was reported that Malabar's cargo included 1,080 boxes of bullion, worth nearly £300,000 and 725 chests of opium.