Short version, is that yes, as you get farther, they won't be able to reach to communicate with shore units, etc. It isn't that they aren't working, obviously, just that the range will get a limit, usually a few miles, depending on transmit power. I think Handhelds go up to usually a max of 5 watts, whereas fixed will run up to 25 watts. Another thing to consider, is the antenna. If you were to hook a mast mounted antenna to a handheld, you would likely increase your range a bit over using the little stubby one on the unit (assuming one that is able to do so). It's not to say that the handhelds are worthless, they are very handy to have especially in an emergency, as if you have to abandon ship, you can't very easily take a fixed VHF and battery with you. Just that compared to a VHF, they have a smaller range due to the lower power, and antenna usage.