Fresh water. Salt water is denser and therefore makes things more boyant. Ships have marks painted on the side of their hull, usually welded lines and then painted over, that show their load limits in salt and fresh water. These lines are known as Plimsol lines or International Load Lines.
The ship will sink slightly. Salt water is denser there for heavy objects will float more in it. When the ship goes back to fresh water the density decreases and the ship lowers again. This link gives extra information and some simple experiments for you to try at home. http://www.kidsgen.com/school_projects/how_ships_float.htm
fresh water
i think it is ppeople because they float in salt water and sink in fresh water.
Fresh water...
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Put an egg in fresh water and it will sink. Put the egg in heavily salted water and it will float near the surface. This is because the salt makes the water more dense and able to support more weight. The same goes for a ship. A ship will settle lower in fresh water and the same ship will float higher in the oceans.
A ship won't sink if the density of the ship (metal, wood, cargo, any included air) is less than the density of water.
Salt water is denser than fresh.
If you just barely float in salt water, you will sink in fresh water.
It's possible that a ship of steel will not sink as well. But if it will sink, it would be because the density of steel is greater then the density of water, while air's density is lower then water's.