Definition:
A TEU (Twenty-Foot Equivalent Unit) is a standard measurement used in the shipping and logistics industry to describe the capacity of cargo containers. It represents the volume of a 20-foot-long shipping container, which is the most common size used for international trade.
TEU Dimensions:
While TEU is a unit of measurement rather than a physical container, it is based on the following standard container dimensions:
- Length: 20 feet (6.1 meters)
- Width: 8 feet (2.44 meters)
- Height: 8.5 feet (2.59 meters)
How TEU is Used:
TEU is used to measure:
- Container Capacity: A 40-foot container equals 2 TEU because it’s twice the length of a standard 20-foot container.
- Vessel Capacity: Container ships are rated by how many TEUs they can carry. For example, a large modern container ship can hold 20,000+ TEUs.
- Port Throughput: Ports measure cargo flow in TEUs to track efficiency and trade volume.
TEU Calculation Example:
- 1 x 20-foot container = 1 TEU
- 1 x 40-foot container = 2 TEU
- 1 x 45-foot container = 2.25 TEU
For shippers, freight forwarders, and carriers, TEU provides a universal standard for quoting shipping rates, calculating container space, and comparing port or vessel capacity.
Understanding TEU helps shippers optimize costs, plan container loads efficiently, and ensure accurate booking for sea freight shipments.