Ship's guide going around in the morning (7)
I believe the answer is:
steamer
'ship's' is the definition.
(a steam ship)
'guide going around in the morning' is the wordplay.
'guide' becomes 'steer' (synonyms).
'going around' indicates putting letters inside.
'in the morning' becomes 'am' (AM on a clock).
'steer' placed around 'am' is 'STEAMER'.
(Other definitions for steamer that I've seen before include "like the African Queen!" , "Cooker; ship" , "Wetsuit" , "Ocean liner" , "Large vessel - cooking vessel" .)