Look outs have been known to miss very large things at see (See also: Titanic), so even if they were posted, they possibly might not have seen the container ship. And even if they did see the lights (which I would assume is a given for any naval ship in these waters, including the destroyer), they might have been so close to them that they didn't comprehend how that the lights were all from the same ship.
But what I don't understand is how radar, even the simplest navigational ones, didn't pick up either ship, at the very least a sky scraper on it's side. Especially considering the waters they were in, the visibility conditions, and the destroyer has some of the best radars on the planet.
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Luck is a residue of Design.
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