What is a TEU in logistics?
In logistics, TEU is used to measure container capacity in a standardised way. This makes it easier to compare container volumes across shipping lines, vessels, ports, terminals and intermodal operations.
For example, if a vessel has a capacity of 10,000 TEU, it can carry the equivalent capacity of 10,000 standard 20 foot containers. This does not necessarily mean 10,000 individual containers, as 40 foot containers generally count as two TEU.
How to calculate TEU
TEU is calculated by converting container sizes into 20 foot equivalent units. A 20 foot container counts as 1 TEU, while a 40 foot container counts as 2 TEU.
For example:
5 × 20 foot containers = 5 TEU
3 × 40 foot containers = 6 TEU
Total = 11 TEU
Why Twenty foot Equivalent Unit matters in transport
TEU is an important measurement in international logistics because it creates a common standard across the supply chain. It is used to compare container capacity and throughput across shipping lines, vessels, ports, terminals and intermodal operations.
Standardised containers allow trucks, trains and ships to move the same cargo unit without unpacking the goods. TEU provides a common way to measure and compare that container capacity.
TEU is also used in capacity planning and performance reporting. Ports, terminals and container ships use TEU to indicate how many containers they can handle or carry. For example, the largest container ships can carry more than 24,000 TEU.
In some cases, freight rates and capacity planning are expressed per TEU, although rates may also be quoted per container, per FEU, per shipment or according to other commercial arrangements.
TEU in intermodal logistics
In intermodal logistics, TEU is used across sea, rail and road transport to measure and compare container capacity. Because standardised containers can move between different transport modes without handling the cargo itself, TEU helps create consistency in planning, capacity management and reporting throughout the supply chain.