Ship is tarry, not good (5)
I believe the answer is:
liner
'ship' is the definition.
(liner is a kind of ship)
'tarry not good' is the wordplay.
'tarry' becomes 'linger' ('linger' can be a synonym of 'tarry').
'not' indicates named letters should be taken away.
'good' becomes 'g' (abbreviation).
'linger' with 'g' taken out is 'LINER'.
'is' acts as a link.
(Other definitions for liner that I've seen before include "Large ship or removable layer of material" , "Material applied to inner surface" , "that's put in bin" , "LP's inner sleeve" , "QE2, perhaps" .)