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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.
What do a canoe, a soda can, and your arteries have in common? Each one is a type of vessel. A vessel can be a ship, a container for holding liquids, or a tube that transports blood throughout your body. Vessel has a number of different meanings, yet all of them relate in some way to liquids and transportation.