Both words can occur as nouns and verbs, too and both are a means of water transport. The first difference between them is that, for example, a ship can carry a boat, but it is not true the other way. That is, there is a difference between them in terms of size: ship is bigger. Secondly, they differ in relation to operational areas. Ships are operated in oceanic areas and high seas. Cruise vessels, naval ships, tankers, container ships are all belong to the category of ships. They are built mainly for cargo or passenger transportation. In contrast, boats are primarily used for smaller purposes. They include towing, sail, or paddle vessels, kayaks, canoes, ferries. Because of the size and the operations, ships have to be equipped with more complex navigation system than boats. They differ in terms of the crew, as well. Ships have professionally trained navigators and engineers as crew, and a captain, while boats can have only one person as a crew or a full-fledged one. Briefly, ships are used for more serious purposes, while boats are less complex.
