I seemed to have found the problem. I believe its a problem with the Merchant skin pack, I started a new career and was assigned a mission to sink merchants off Luzon. Had another "Fast single ship" contact. Honed it in on sonar and jumped to it in the external view. turns out it wasn't 1 ship but several ships of the same type(Old passenger carrier). Gonna reinstall the mod and see what that does.
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