The Fog Ship is a mysterious ship led by an entity only known as Fog Ship Guide. This vessel appeared seemingly out of nowhere during the Island Liberation War and hit the Dauntless. Intrigued, Lazlo and Lino En Kuldes went on the deck to investigate and a robed man invited them to meet with the captain. Once inside the ship and before the Guide, Lazlo refused his proposal to surrender his Rune of Punishment to him in exchange for eternal life. And upon hearing this, the mysterious robed man revealed his identity - Ted - and reclaimed his Rune of Life and Death as well.