A common reference to the boat "The Titanic."
basically, the word means any floating object that was clearly poorly designed, causing it to fail.
"Here is your fail shipment: One Fail Boat."
"Oh, you mean the one made out of lead?"
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.
Someone who constantly fails at something, and generally Life in its self. Can be told to the person as a pay out.
Excuse me, sir can i plz ride take a ride on your fail boat.
Hey lets all jump on to this noobs fail boat and take a ride down Fail Lake.