While testing at MAGFest it was realized I accidentally excluded the sinking rules from the Rulebook. Here is the hotfix until the rulebook can be updated:

“When a player sinks they return to their Port-of-call and receive one less action on the following turn. If a player sinks with actions still remaining, they may take their penalty on the same turn by passing on one of their remaining actions. Players sunk leave all cargo in their hold on the hex they sank on. If a player sinks you, that player receives coin equal to your ships value as well as any/all cargo from your hold they wish. Note: the coin received from sinking comes from the collective pool and not the sunk player. “