I think I'll place my story teller at the back of the ship, watching the wake disappear into the horizon behind as he tells his tale. The weather's good, sea calm. I picture him perhaps leaning on the rail. Where would he say he is? What might he be leaning on? What sights or sounds might surround him?

Is he an experienced sailor? or a landlubber?   If the latter - he is probably leaning on the rail at the back of the boat. If the former more likely at the taffrail (which in itself implies the stern)