Because tunneling, game physics are not IRL physics; when an object moves it doesn't really 'move' rather it jumps or teleports in small increments. A ship moving at 5ms is teleporting 5 increments along the games coordinate grid every game-step. A ship moving 50000ms is teleporting 50000 increments along the games coordinate grid every game step, at that point the increments become larger than objects and the ship simply skips over them without ever colliding with them or even occupying the same space. This makes the ship appear to fly or tunnel straight through objects.
There is a system known as ray-casting where the ship checks the line between its current position and the position it is about to jump to before moving, and stops at/collides with any intervening objects it finds along that line. IIRC there is a setting in server.cfg that allows an experimental version of this feature to be turned on but I haven't tested it.