ship (n.) Look up ship at Dictionary.com
Old English scip "ship, boat," from Proto-Germanic *skipam (cf. Old Norse, Old Saxon, Gothic skip, Danish skib, Swedish skepp, Middle Dutch scip, Dutch schip, Old High German skif, German Schiff), "Germanic noun of obscure origin" [Watkins]. Others suggest perhaps originally "tree cut out or hollowed out," and derive it from PIE root *skei- "to cut, split."

The Old English word was used for small craft as well; in 19c., distinct from a boat in having a bowsprit and three masts, each with a lower, top, and topgallant mast. French esquif, Italian schifo are Germanic loan-words. Phrase ships that pass in the night is from Longfellow's poem "Elizabeth" in "Tales of a Wayside Inn" (1863). Figurative use of nautical runs a tight ship (i.e., one that does not leak) is attested from 1965.
ship (v.) Look up ship at Dictionary.com
c.1300, "to send or transport by ship," from ship (n.). Transferred to other means of conveyance (railroad, etc.) from 1857, originally American English. Related: Shipped; shipping.