Well each side can control up to 20 ships at a time, and battles can involve more than just 2 factions' navies. So you could very well have a Trafalgar-style battle in which a British fleet of 20 warships takes on a combined French-Spanish fleet of 26 vessels (just as an example).
CA has also said that you can group your ships into squadrons (much like how it's always worked in land battles), and that you can assign formations to them. I don't believe you can run ships aground, but I might be wrong.
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