Damage meter
From YPPedia
The damage meter on a ship shows how much damage the ship has taken. It can be viewed in the vessel panel of your screen. The damage meter slowly increases over time, but getting shot with cannon balls, navigating into rocks, or being rammed by the other ship during sea battle also causes damage to increase. Damage causes the bilge meter to fill up faster. This causes the movement token generation to slow down during sea battle and makes it more difficult to increase your speed on the open seas. Performing the carpentry puzzle decreases the amount of damage a ship has.


