[StaticHamster]

hmmmm;

Since this is the case for overriding bonus/penalties for running away it is a logical assumption and so I would agree that the boat would override the Dwarf ability as well until discarded.

However there are several instances that logic doesn't make sense in Munchkin, like if the boat doesn't have bonus/penalties for running away you use your racial even though you are still on a boat.

So unless the PTB overrule our assumption, this sounds like the correct answer.