That is too loose, worn out. That looks like a rebuildable style rudder port, maybe Marine Hardware. I would pull it apart and check/measure the rudder post for damage and wear and the port as well. If the metal of the post and port is not excessively worn, skidim sells the rebuild kits. They consist of a seal or two, oring, and plastic wear sleeve. Also check that it's still bedded in well. Could be leaking through the port but also around the port from either age or hitting bottom. Worst case if the hard parts are worn or damaged you can get a new rudder. I just replaced my old worn rudder and port with the new style big MC rudder.
Last edited by cadunkle; 08-01-2016 at 4:03 AM.