TEU (twenty-foot equivalent unit)
A TEU, or twenty-foot equivalent unit, measures containerized cargo capacity in units of one standard 20-foot ISO container; a 40-foot container counts as 2 TEU. The unit sizes everything in container shipping: vessel capacity, port throughput, trade-lane volumes, and carrier market share are all quoted in TEU, making it the common denominator for comparing capacity across ships, terminals, and annual shipping programs.
Examples
Program sizing: An appliance maker imports 1,800 forty-foot containers a year from Asia, a 3,600 TEU program. Its ocean RFP states the volume in TEU so carriers can weigh the commitment against their trans-Pacific vessel allocations.
Slots versus payload: A fastener buyer loading a 40-foot box hits the road-legal weight limit at about 19 metric tons with two-thirds of the cube still empty. On paper the box is 2 TEU of capacity; in practice it is weight-constrained, so the buyer prices freight per ton rather than per container slot.
Definition
The TEU exists because containerization needed a common yardstick. Ships, cranes, yards, railcars, and chassis all handle the same ISO boxes, so capacity anywhere in the system can be expressed as a count of 20-foot slots. The largest container vessels carry more than 20,000 TEU, port rankings are published as annual TEU throughput, and ocean carrier fleets and intermodal corridors are sized the same way.
Two nuances keep the number honest. First, most cargo actually moves in 40-foot boxes (2 TEU each, sometimes counted as one FEU), so a 10,000 TEU vessel carries roughly 5,000 physical containers. Second, TEU counts slots, not payload: heavy freight hits a container's weight limit long before the cube fills, so 2 TEU of nominal space does not guarantee twice the cargo. For a shipper the unit matters most in contracts and planning. Annual ocean agreements set minimum quantity commitments in TEU or FEU, and import programs are sized in TEU per year, while day-to-day booking runs on whole containers for FCL and cubic meters for LCL.
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