How do you change the lights on your lantern and ship?

You need to die to one of several different methods, then when you're on the ferry, raise your lantern at the big flaming torch thing in the middle and you should be able to claim the flame/lantern color.

Different methods of dying give different colored flames.
Death by Skeleton: Green
Death by Shark: Blue
Death by Poison (Snake/Kraken): Purple
Death by Player: Pink
Death by Volcano: Red
Death by Lightning: White

Then hold your lantarn high at a shiplantarn and you can choose either to take the shipcolour or to change the shipcolour. But its a new bug that sometimes its not working at the moment

@takeoutostrich2 you need to hold that lantern up. If u are using controller it’s left trigger. After holding it up it will prompt you with take flame. Geysers and boiling water don’t count as Valcano.