Not all of the ships in the game or mod have "damage" images, but in this case, you actually are shooting at the Medium Split Freighter, aka: Momoyama Maru (in Nippon Maru), which does have a damage image. However, there are only so many "holes" that will show in the ship (generally 2 or 3), and if you do not hit near one of the "hole" locations, you will not see a "hole" generated in the hull. There is also that "impact force" of the torpedo itself, which it looks like your torpedo exploded several yards short of the ship, and may not have done enough "damage" to make the "hole" appear anyway...
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