You don't need to use the boat yet. Just head along the coast until you see snow on the ground, then go north for the next place. I'm not sure what level is the reasonable minimum here since I too got lost after this point for quite a while.
Wish I could help... I have 100 hours on the game, beat the main story a while ago... you can try Gamefaqs.com and check out a walkthrough. Damn I need to return to that game.
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