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While gathering freight rates, you’ve likely come across a unit of measurement that’s unique to maritime logistics: TEU. In this guide, we’ll walk through what a TEU is, how it’s calculated, and why it’s so important to the global shipping industry. TEU is a standard unit of measurement in shipping. It stands for Twenty-Foot Equivalent Unit.
As the TEU is an inexact unit, it cannot be converted precisely into other units. The related unit forty-foot equivalent unit, however, is defined as two TEU. It is common to designate a 45-foot (13.7 m) container as 2 TEU, rather than 2.25 TEU.
What is TEU in shipping? TEU, short for T wenty-foot E quivalent U nit, is a standard unit of measurement used to help with global supply chain logistics and planning. The TEU unit of measurement was derived by the size of a standard 20′ shipping container, which measures 20 feet in length.
TEU is used to measure the volume of twenty-foot containers in units. Measuring the volume of 20ft containers helps define the capacity of container ships and container terminals to store cargo. The term TEU was initially used to describe 20ft shipping containers.
What Is a TEU in Container Shipping? TEU — Twenty-Foot Equivalent Unit — is the standard unit of measurement for container capacity in maritime shipping.