Twenty-foot Equivalent Unit (TEU)

What is Twenty-foot Equivalent Unit?

The Twenty-foot Equivalent Unit (TEU) is a standard unit of measurement in container logistics, representing the size of a 20-foot shipping container.

A standard 20-foot container measures:

• Length: 20 feet (≈ 6.1 meters)
• Width: 8 feet (≈ 2.44 meters)
• Height: 8.5 feet (≈ 2.59 meters)

A 40-foot container is equivalent to 2 TEU, as it is twice the length of a 20-foot unit.

Purpose and Usage of TEU

TEU is widely used by shipping lines, ports, and logistics providers to measure and compare:

• The capacity of container ships
• The throughput of ports and terminals
• Container volumes in transport and logistics networks

TEU simplifies capacity comparisons regardless of actual container sizes, and is a common unit for freight rate calculations.

TEU in Practice

• Freight cost calculation:
  Shipping rates are often quoted per TEU
• Capacity planning:
  Ocean carriers use TEU to plan bookings and optimize vessel space
• Terminal operations:
  Container terminals use TEU to measure throughput and manage yard space