In that film, the ship, the *SS. "The SS. Alice" * is set ablaze by Clayton, the villain of the story. He uses his hunting rifle to shoot at the ship's barrels of gunpowder, causing a chain reaction that quickly engulfs the entire vessel in flames.
This incident serves as a turning point in the film, forcing Tarzan to choose between his loyalty to the gorillas and his newfound human connection with Jane.