No, they regain consciousness after almost getting pushed overboard and everyone freaks their shit thinking they're zombies.

This is the episode where they board the S.S. Anne (maybe another ship, I don't remember) and the ship gets sunk. Ash and company are trapped in the portion of the ship that got flipped outside down and is sinking. They make a plan to get to the bottom of the ship to cut their way out of the hull(?). They end up escaping and getting that raft somehow.

Sometime during the episode, James is suckered into buying a Magikarp who he later kicks while on the raft because Ash's pokedex says they are not even good for eating, then it evolves into Gyrados and does Dragon Rage(?) and wrecks everyones shit.

Damn, can't believe that I remembered the episode that well.

Woah! In the thumbnail I honestly thought Meowth's head and body in the first panel was James' bare ass!