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Vessel is a catch-all term, like 'watercraft', which describes any floating object used for the carriage of people or goods. Generally smaller and less complex vessels are 'boats', whilst larger and more complex vessels are 'ships'. As a general rule, you can put a boat on a ship, but you can't put a ship on a boat.
There is no universal definition of what distinguishes a ship from a boat. Ships can usually be distinguished from boats based on size and the ship's ability to operate independently for extended periods. A legal definition of ship from Indian case law is a vessel that carries goods by sea.