What Does TEU Stand for In Shipping (Twenty Foot Equivalent Unit)

If you’re wondering what is TEU, also known as “Twenty Foot Equivalent Unit”, this is an exact freight capacity unit of measurement for shipping containers and terminals.

In this quick guide, we will dive deep into the TEU meaning in shipping and unwrap everything you need to know.

TEU Definition in Freight Shipping

You now know what does TEU stand for, so let’s learn what is a TEU in shipping used for!

The standard freight shipping container has the dimension of 20ft, and TEU refers to the approximate measurement of the amount of space a 20-foot cargo container takes up. So, when you are booking a freight shipment, you need to know how to define TEU so you can calculate costs.

When you receive a rate calculation, it’s important to note that it’s measured through the TEU units your freight consists of and not how many containers.

Freight carriers use TEU units for estimating freight shipping volume and determining space utilization as per vessel size, which helps them calculate freight costs. This avoids confusion in the freight supply chain and provides accurate pricing as per the space utilization.

So, what is a TEU in shipping? A measurement tool, where 1 unit equals a 20-foot container!

TEU vs FEU

To understand FEU better, here’s a practical example. You are shipping one 40-foot container as well as two 20-foot containers. So, considering that TEU’s unit is 20 feet and FEU unit is 40 feet, you’re shipping 4 TEUs and 2 FEUs. In short 1 FEU = 2 TEU.

You can also measure the capacity of a shipping vessel by using TEU and FEU. For instance, an ocean freight ship with a capacity of 5,000 FEUs carries 10,000 TEU Twenty Foot Equivalent Units.

Hence, both terms are used to describe the space occupation of a freight container/s and are used as general measures for the amount of volume being shipped.

How Many TEU Are in a 40" Container

Well, now that we know exactly what forty foot equivalent unit (FEU) and twenty foot equivalent unit (TEU) are, it’s easy to tell that a 40-foot container is two TEUs and one FEU.

Here are some examples of differently sized containers with TEU and FEU units conversion:

As shown in the table above, one FEU equals two TEUs, regardless of the container size.

In short, that’s how FEU and TEU shipping terms are defined..

So, let’s take a look at how exactly it is calculated.

How Is TEU Calculated

Well, after the examples, we now have a good grasp of the meaning of TEU in shipping, so it’s time to learn how exactly it’s calculated. The Twenty Foot Equivalent Unit TEU is calculated by dividing the total length of a freight container in feet by 20.

For example, a standard 20-foot freight container is one TEU; hence, a 40-foot container counts as two TEU units. A single TEU has an approximate freight shipping volume of 1,360 cubic feet, making it a key measurement for determining freight capacity.

The TEU freight shipping measurement also covers non-standard containers, such as 8.5 feet freights, which would be precisely 0.425 TEUs, as well as 48-foot cargo, which equals 2.4 TEUs.

Hence, understanding what is TEU in shipping and how it’s calculated is crucial for scheduling shipments and managing freight shipping space efficiently. You should now have a good idea of what is TEU in container ship, so let’s move on and unwrap some of the main benefits of these units.

What Are the Benefits of Using TEU Containers for Shipping

Now we know exactly what does TEU mean in shipping, so let’s check a few major benefits for freight shipping carriers and why they keep using the twenty foot equivalent unit TEU.

• A Standard That Works – TEUs makes shipping calculations a simple, go-to system that makes standardized freight shipping easier.

• Easy Pricing Calculations – With twenty equivalent unit (TEU), freight carriers can forget counting containers since the cost comes from the occupied space (TEUs).

• Better Freight Planning – Ships are built with TEU containers in mind, so you get way better use of space and a tidier cargo setup.

• No Borders, No Problem – Everyone around the world knows what is TEU shipping, and how to use it, meaning freight moves smoothly without confusion.

• Hop Between Rides Easily – The twenty foot equivalent unit TEU makes loading and unloading easier, keeping costs low and cutting down on travel time.

• Lower Cost on Small Loads – If you have a small freight to ship, you can squeeze it into a 1 TEU container with other cargo and skip paying extra for a giant container.

• Easy Freight Size Scaling – Whether your freight needs only one TEU or a few, you can tweak your carrying capacity plan whenever business picks up or slows down.

• Better for the Global Trade – TEU in shipping means packing more into each trip, so fewer runs mean less fuel burned for every bit of cargo you send.

Final Thoughts: What is TEU in Shipping Terms?

Now that we know exactly what is TEU in shipping terms, we can wrap things up by saying that the twenty-foot equivalent unit revolutionized the freight shipping industry for the better. Hence, by definition TEU is just a measure unit; in practice, however, it’s a tool that optimizes logistics and reduces operational costs.

Now, knowing what is a TEU in container shipping, you can accurately estimate freight shipping costs, compare freight options, and optimize TEU capacity. So, if you are looking for freight shipping, we recommend using the FreightRun Quote Calculator.