“The most rigid and hidebound societies conceal the most illicit activity just below the surface. If you have tariffs and duties, you also will have smugglers who evade them. If one squeezes hard on a bladder wine-sack, the wine must spurt out somewhere, yes?” – Razum-dar
If you are bound to enter the dungeon from the western entrance, you’ll go through a tunnel in a large boulder, and follow the path toward the dungeon entrance. There is an NPC called Renzir close to it, offering an additional dungeon challenge. There are some vines you have to interact with to enter the delve, not your usual doors.
As you enter Karnwasten, open the map. Somewhere near the center, you’ll spot the large beach area, where the main ship from the loading screen is located. Head toward this place, but be wary of the large number of enemies there. South from the large ship, near the coral pillar, you’ll find the Skyshard among the shanties.