I'm more fascinated by the question of whether it scales up... imagine much smaller and more efficient electric engines for cruise liners and cargo ships.

The article and the press release it was derived from says nothing about "more efficient", just smaller.

https://yasa.com/news/yasa-smashes-own-unofficial-power-dens...

On a cargo ship the last thing you worry about is weight. To the point that they add ballast.

Your average cruiseship already has an electric engine, they just have massive generators onboard to power it.

Notably, it’s probably also not very efficient, and eventually they’ll likely upgrade with some of the improvements from these types of motors to save on fuel.