Carriers face the potential of taking drastic action — including permanent cuts in capacity and increased scrapping — if there is a prolonged downturn in demand caused by successive outbreaks of the coronavirus disease 2019 (COVID-19), maritime consultancy Drewry said Tuesday.

Source: https://www.joc.com/maritime-news/container-lines/carriers-could-make-permanent-capacity-cuts-prolonged-downturn-drewry_20200714.html

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Occurring in the same sentence as "permanent cuts in capacity", "scrapping" may mean the destruction of a ship that is no longer used. A search for the phrase "What is scrapping in the shipping industry" brings up an article in Wikipedia called "ship breaking", which is about destruction of excess shipping vessels.
Wikipedia "ship breaking"

Ship-breaking or ship demolition is a type of ship disposal involving the breaking up of ships for either a source of parts, which can be sold for re-use, or for the extraction of raw materials, chiefly scrap.

... all ships will be eventually scrapped, sunk, or preserved for museums

The article mentions the word "scrap", "scrapping", "scrapped" multiple times.

The sense of that word is this:
American Heritage Dictionary "scrap"
v. tr. 1. To break down into parts for disposal or salvage: scrap an old stove.

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