In case anyone finds themselves in the same position as me, I could not find Merric when I got this quest at Level 28. It told me he was on a ship in Stormhaven. After looking around and finally using the journal to plot him on the map, it gave me a different location in Sentinel which I haven't opened yet. I noticed at that time that it is listed as a lvl 33 quest.
Bottom line: If you are looking for Merric on the ship in Stormhaven, ignore that marker - it's wrong. Use your journal map instead.
Edited by lypheb16_ESO on April 11, 2014 3:05PM