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Supply Chain Glossary
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Twenty-foot Equivalent Unit (TEU)

What is TEU in shipping?

Twenty-foot Equivalent Unit (TEU) is a standard unit of measurement used in the shipping industry to quantify the cargo-carrying capacity of container vessels. It represents the volume of a standard twenty-foot-long shipping container.

What does TEU stand for?

TEU stands for Twenty-foot Equivalent Unit. It is derived from the length of the standard shipping container used as a reference for calculating cargo capacity.

How to calculate TEU

To calculate TEU, simply divide the total cargo capacity of a vessel in twenty-foot equivalent containers. For instance, if a ship can carry 10,000 twenty-foot containers, its TEU capacity would be 10,000 TEU.

How many TEU can a container ship carry?

Container ships vary widely in size and capacity. Smaller vessels may carry a few hundred TEU, while ultra-large container vessels (ULCVs) can carry upwards of 20,000 TEU or more. The capacity of a container ship is determined by factors such as its size, design, and the configuration of its cargo holds.

Understanding TEU is essential for logistics professionals as it helps in planning and optimizing containerized cargo operations, ensuring efficient utilization of vessel capacity and resources.