Wheel around old ship (7)
I believe the answer is:
coaster
'ship' is the definition.
(coaster is a type of ship)
'wheel around old' is the wordplay.
'wheel' becomes 'caster' (small wheel attached to a large object).
'around' is an insertion indicator.
'old' becomes 'o' (abbreviation).
'caster' placed around 'o' is 'COASTER'.
(Other definitions for coaster that I've seen before include "It goes under a schooner, perhaps" , "proceeds with little effort" , "Small mat; cargo ship" , "Small table mat" , "Trading vessel" .)