Transom Rot?

Below the waterline of the transom the paint peels off by hand, between the paint and the wood is a thin white layer of crust. Is this the early stages of rot? Any input would be greatly appreciated, thank you.

 

The plywood shows some deterioration, but may not yet be rotted. You need someone to do an onsite inspection. The white stuff looks like primer.

 

It looks like the finish coat did not adhere properly to the primer. Tap around with the blunt end of a screwdriver for any spots that produce a dull sound, which may indicate rot, but it looks like it might just be cracking in the outer ply.