TEU (Twenty-foot Equivalent Unit)
The standard unit of container measurement, equal to one 20-foot container; used to measure port capacity, vessel size, and freight rates.
In detail
TEU is the universal unit for measuring containerized shipping volume. One 20-foot container = 1 TEU. One 40-foot container = 2 TEU. Applications: port statistics (e.g., 'Shanghai handled 47 million TEU in 2024'), vessel capacity ('the vessel has 24,000 TEU capacity'), freight rate quotation ('$1,200/TEU'). For the importer, TEU matters in two ways: (1) When comparing freight rates, ensure the same basis (TEU vs FEU). A $1,200/TEU rate = $2,400 for a 40-foot container; a competitor quoting $2,000/FEU is cheaper by $400. (2) When calculating container utilization: a 40HC has approximately 76 m³. Loading 45 m³ uses only 59% of capacity — but you still pay the full FCL rate. Planning consolidated orders to maximize container fill improves cost per CBM significantly.
Examples
- →Port throughput: 1.5 million TEU/year. Vessel: 12,000 TEU capacity. Rate: $2,400/FEU = $1,200/TEU
Related terms
FCL (Full Container Load)
A shipment occupying an entire ocean container — 20DC, 40DC, or 40HC — booked and sealed by one shipper.
Freight Rate (Ocean Freight)
The cost charged by the shipping line to transport a container between two ports, quoted per TEU (20-foot) or FEU (40-foot), excluding terminal handling and surcharges.