If you live near the coast you can see that under any condition the ships will appear to 'sink'. The swelling is not an issue. I have also demonstrated this with a diagram. What part of that doesn't make sense to you?
The part where I go to a beach, and see the ships still on the horizon. The further they are, the more the invisible deflective mist layer caused by sea foam, of tiny water droplets floating above the sea surface, reflecting sunlight everyother which way possible, blocking direct light from hitting the lower side of the ship, and reaching you back.
You are aware of the basic properties of water, ja? The lower side of the ship doesn't "sink" after it drifts apart, it gains more water drops that are diffuzed because of sea movement and waves to fly in the space between you and the ship. That fine cloud of droplets similar to the water sprinkles that create rainbows if you see them from a right angle, reflects it's surroundings to your eyes.
And most of it's surroundings is water, because the cloud begins at the beach and ends all the way until it reaches the ship. All that fine floating water layer of mist above the actual liquid water is reflecting the water under it to your eyes. You know water is reflective right?
This experiment can be done at a waterfall, to see how agitated water surfaces form a layer of reflective water droplets that reflect light from around them to great distances. That cloud of water will obscure the ship's lower visible side from you if you're far away enough, to only show you the light from around it. That is captured from the sea surface. So the sea surface between you and the ship is reflected back to you eyes, by the water droplets floating above an agitated sea.
This effect of sea surface reflection occurs less in calm water surfaces. Easy to verify for all with a mind.
The same effect is seen in water vapors on hot asphalt, in warm days, or even above a regular fire or heater in a cooler day. The vapors on the road reflect the sky above them, to make you see the road is "turned to sky", or is a giant mass of water. This Fae Morrigan effect also exists in the desert, to fool you into "seeing" water. Only to find it was a reflection of the sky in water drops / vapor.
Those same water drops that reflect the actual sea under them, to you, obscuring your partial view of the ship, like a "hill of water" that is on top of the flat sea surface.