There are three different ways to a large ship such as pirate ships or gallions. To sink these ships you must have at [/b]least 1000 health for any of the three ways to sink these.
O.K. first, lets do the most simple way, the tail flick, to preform a one, all you have to do is go a few meters from to surface, then once your near the ship flick yourself down leaving the tail to whack the ship in the [b]hull. Do this several times and the ship should sink.
Now for the more dangerous but obivous way, all you have to do is get a boost, go to the botton directly under the ship that you want to sink, go straight up then ,about halfway to the surface, use your boost to ram the hull, continue to go straight up over the ship, try to crash down on the top deck to smash the ship.
This is the easiest, but most dangerous, way to sink a ship. The only thing you have to do is knock all of the pirates off of the ship in any way you want to. When all of the pirates are off of the ship it will sink.
Once you get late game, I found it best to do the boost method, getting as much air as possible. Once the cannonballs rain down, being in the air is the safest place.