I'm glad to see that you are undertaking this project. Everything looks shipshape so far.
The balsa should provide for a smooth hull, although as evidence that full-sized ships are not immune from waving hull plating, I submit this image of the Liberty Ship SS John W. Brown, aboard which I had the pleasure to travel on the Chesapeake Bay last Saturday. Of course, armored hulls may be somewhat less susceptible to this sort of dishing.
Don
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