After convincing Screewoggins that he sunk his ship, head over to the wreckage ( -91, -17, 146 ) /waypoint -91, -17, 146 in Enchanted Lands. You will find a chest, but be careful, when you open it an 83^^^ heroic octopus will spawn and aggro.
You will may need a group for this part if you are not a well equipped 90. He has a nasty multi-hit crushing AoE.
Kill him for the update.
Return to Captain Screewoggins, and give him the information on his ship