They haven't really met in person, so Sephiroth isn't aware that this... person doesn't always look so dispropotionate. He's like some sort of goblin... A deformed goblin.

He isn't particularly interested in associating with the goblin, especially amid all the sneezing, but he does make that one observation that Sephiroth hadn't. He takes another look at the welcoming crowd even as he fends off someone with a flower wreath. No children... Is that odd?

"Perhaps they don't come to the dock."

It would make sense, wouldn't it? Not to bring your children to greet a group of unfamiliar and potentially dangerous individuals?