In this paper, we propose a novel dynamic fuzzy ship domain that considers factors associated with both one's own ship and other ships. This is in contrast to existing ship domain models that operate from the perspective of one's own ship, considering only the factors relevant to that ship. First, the domain was determined by considering the distance of the ships around one's own ship in different directions, which sufficiently accounts for factors associated with one's own ship and with the other ships. At the same time, the factors were chosen based on an analysis of their importance. Second, the domain was dynamic and modelled by establishing the relationship between the domain size and the chosen factors in different directions from one's own ship, obtained by using neural networking and wavelet decomposition. Third, the domain was developed using fuzzy sets related to different safety levels and this related the model to the practical applications of estimating spatial collision risk. The model was calibrated using Automatic Identification System (AIS) data of vessel movements in the Bohai Sea and the northern Yellow Sea. The reasonableness and the superiority of establishing a ship domain model considering the factors affecting both one's own ship and other ships were analysed, and the results show that the new model can determine the spatial collision risk of the navigational situation and is thus suitable for use as part of a ship collision avoidance system.