A term you use when someone fails or does something wrong, implying in a joking way that it was really bad or that it went wrong because they were stupid.
It is in reference to "fail boat" pictures on the internet (google image search it) which ususally depict a boat that is sinking or capsized with the words fail boat underneath.
If this were to be put on a scale of failure then it would be just below the term "epic fail".
If someone or something has failed or is on its way to failure then you would say:
"All aboard the Fail Boat!"
"Your shipment of Fail has come in!"
If your on instant messanging or emailing then you would usually attach a picture too because the joke is rooted in the pictures and is funnier if you use a different one each time.
The Urban Dictionary Mug
One side has the word, one side has the definition. Microwave and dishwasher safe. Lotsa space for your liquids.
Buy the mug