It seems to be a translation into English of a few verses of La Courte Paille (also called Le Petit Navire). Popular in France and Canada, it's often a children's song nowadays, having been re-made for the early French music hall. The same story appears a little later in England as The Ship in Distress, but the earliest forms were Scandinavian, it appears.

There are some past discussions here. See The Ship in Distress for links to most of them; but ignore the section about Lord Franklin in the middle of the thread, which, though interesting, is irrelevant.