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!"
or
"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.