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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.
The main difference between a boat and a ship is this: a boat is designed and used on inland waters. a Ship travels the seas. A yacht is a generic term that has many meanings, but my choice is that it is a personally owned ship. randy Â· 9 years ago. 1. Thumbs up.