Ship1 at rest on top.

Code:` `

T--------------------N

<----- N----------T

Ship2 at rest at bottom.

Code:

T----------N ----->

N--------------------T

Here we have 2 ships passing each other and each diagram shows one of the ships at rest and the other one moving and length contracted. There is 1 moment when T of ship1 is lined up with N of ship2. This moment must be the same moment for both ship1 and ship2. At this moment N of ship1 must look in 2 different directions simultaneously in order to look at T of ship2. This is impossible. N of ship1 has both passed and not passed T of ship2. This is also impossible. What happens if this isn't the same moment for both ship1 and ship2? Well now you run into the problem that T of ship1 passes N of ship2 twice.

So you have your choice:

1. T of ship1 passing N of ship2 is simultaneous for both ship1 and ship2 and it is impossible that N of ship1 must look in 2 directions simultaneously in order to look at T of ship2 and N of ship1 has both passed and not passed T of ship2.

2. T of ship1 passing N of ship2 is not simultaneous for both ship1 and ship2 and it is impossible for T of ship1 to pass N of ship2 twice.