Archimedes says:
Force up on ship or nail - weight of water displaced which is density of water times g times VOLUME OF WATER DISPLACED.
In the case of the ship, assuming it is not full of water, the volume of water displaced includes the volume of the inside of the hull which may be mostly air. Therefore the force up is far greater than it would be if the ship were solid iron.
Ship made of iron doesn't sinks but iron nail sinks. Why?
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By the way, if the ship had a hole in the bottom, so that it filled with water, it would sink just like the nail.
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