Thus, as long as Jormungandr could embed a command in all the quasi-Transcendents and other monsters to not target ships below a certain threshold of energy, then all warships would become obsolete.
Of course, this was also true for the Panamic warships, of which the Kandrian Empire had a substantial amount, but Rui had decided that this was a worthy trade-off.
Most of Panama's vessels were designed for trade and transport.
After all, during the Era of Darkness, the ocean became their only refuge for trade. All ships, including most battleships, were rapidly refitted and converted to carry as much cargo as possible to transport and deliver across human civilization through the sea.
Thus, the Panama Continent would not lose much by not being able to field warships, while the true world would become neutered in its naval warfare.