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Similar to the Dutch Rudder where a male would grab hold of his own penis and another person would grab the forearm of the hand gripping the man snake and move it as to perform masturbation. The Portuguese Lobster Boat adds to this act by adding another person to the mix. The third party would then take hold of the arm of the person grabbing hold of the arm of the person grabbing the man meat. The whole thing when coordinated correctly looks like 3 people rowing a boat.
Andy: Hey Joe, do you want to join Doug and I in the living room, we are trying to start up a Portuguese Lobster Boat?

Joe: I always thought Dutch Rudders were gay. But its not gay if it's in a 3 way.

Doug: its never gay bro, chill

Joe: You right...
by J0HNNY0 September 08, 2016
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