Understanding TEU (Twenty-foot Equivalent Unit)

August 22, 2024

What is TEU in Logistics?

TEU is short for twenty-foot equivalent unit, working as a standard measurement in logistics. One TEU represents the space occupied by a standard 20 ft shipping container, which is about 33 cubic meters or 1,172 cubic feet.

History and Development

American businessman Malcolm McLean revolutionized global trade by introducing standardized containers in the 1950s. The adoption of TEU as a uniform measurement of shipping cargo facilitated the growth of international shipping. Today, over 11 billion units of containerized cargo move annually.

Calculating TEU

Calculating TEU involves understanding the dimensions of the containers. One standard 20 ft container equals one TEU. A 40 ft container equals two TEUs. A 10 ft containers equals 0.5 TEU.

The formula for calculating TEU is listed below:

40 ft =2* 20 ft = 2 TEU

10ft=20ft/2=0.5 TEU

Examples and Applications

Consider a ship carrying 500 20-foot containers and 300 40-foot containers. The total TEU calculation would be:

500 TEU+ 300*2 TEU= 1100 TEU

Carriers can determine the cargo capacity of their vessels by TEU calculation and ports can also use this to manage storage space and plan for incoming shipments, which greatly improved global logistics efficiency.

Container Dimensions

Standard Container Sizes

10ft Container (10GP)

• Uses: Suitable for small shipments and storage, commonly used for personal belongings, small machinery, or tools.
• TEU: 0.5 TEU

20ft Standard Container (20GP)

• Uses: The 20ft standard container is widely used for general cargo transportation. It is ideal for transporting medium-sized goods, machinery, and bulk items that do not require special handling.
• TEU Equivalent: 1 TEU

40ft Standard Container (40GP)

• Uses: The 40ft standard container is the most commonly used container for global trade. It is perfect for larger quantities of goods, including electronics, furniture, and clothing.
• TEU Equivalent: 2 TEUs

40ft High Cube Container (40HQ)

• Uses: The 40ft high cube container offers extra height, making it ideal for transporting voluminous goods such as light machinery, furniture, and other oversized cargo.
• TEU Equivalent: 2 TEUs

45ft High Cube Container (45HQ)

• Uses: The 45ft high cube container is designed for transporting even larger volumes of goods, making it suitable for long-distance shipments of bulky items.
• TEU Equivalent: 2.25 TEUs

Special Container Sizes

20ft Open Top Container (20OT)

• Uses: The 20ft open top container is ideal for loading and unloading oversized cargo, such as machinery or construction materials, that cannot be easily loaded through the standard container doors.
• TEU Equivalent: 1 TEU

40ft Open Top Container (40OT)

• Uses: The 40ft open top container is suitable for taller cargo that can be loaded from the top, like large industrial parts or pipes.
• TEU Equivalent: 2 TEUs

20ft Flat Rack Container (20FR)

• Uses: The 20ft flat rack container is designed for oversized cargo, such as vehicles,steel, and large equipment. It has collapsible sides for easier loading.
• TEU Equivalent: 1 TEU

40ft Flat Rack Container (40FR)

• Uses: The 40ft flat rack container is ideal for transporting extremely heavy and oversized items, including Lumber, industrial machinery and boats.
• TEU Equivalent: 2 TEUs

20ft Reefer Container (20RF)

• Uses: The 20ft reefer container is a refrigerated unit, ideal for transporting perishable goods, such as food, pharmaceuticals, and chemicals, that require temperature control.
• TEU Equivalent: 1 TEU

40ft Reefer Container (40RF)

• Uses: The 40ft reefer container provides a larger refrigerated space for transporting large quantities of temperature-sensitive goods over long distances.
• TEU Equivalent: 2 TEUs

20ft Tank Container (20TK)

• Uses: The 20ft tank container is specifically designed for transporting food, pharmaceuticals, chemicals, and other liquid cargo.
• TEU Equivalent: 1 TEU

40ft Dress Hanger Container (40DHC)

• Uses: The 40ft dress hanger container is equipped with specialized bars for hanging garments, making it ideal for transporting clothing and textiles without wrinkling.
• TEU Equivalent: 2 TEUs

Shipping Uses of TEU

Transportation Planning: Accurate TEU calculations optimize loading and unloading processes, simplifying logistics and minimizing handling costs.

Supply Chain Efficiency: TEU facilitates smooth transfers between ships, trains, and trucks, reducing delays, minimizing damage, and optimizing routes, while also influencing shipping rates and cost considerations.

Conclusion

TEU stands as a fundamental metric in logistics. Accurate TEU calculations will remain essential for optimizing logistics, reducing costs, and navigating the future of global trade.

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YQN Operation Team

info@yqn.com