WHAT IS TEU?

What is TEU? Learn the definition, role, and meaning of TEU in maritime transport and logistics. A clear and easy-to-understand explanation for businesses.

• TEU stands for Twenty-foot Equivalent Unit – a standard unit used to describe the cargo capacity of container ships and container ports. Because containers come in different sizes, the logistics industry needs a unified unit to calculate cargo volume, transport capacity, and storage capability. TEU was introduced to standardize data globally.
• 1 TEU is equivalent to one standard 20-foot container (20ft long x 8ft wide x 8ft high). Therefore, one 40-foot container equals 2 TEUs. In addition, 45-foot containers are also counted as 2 TEUs.

Today, container ships vary greatly in size, so TEU is widely used as a common unit to measure vessel capacity. Example: The world’s largest container ships have capacities exceeding 14,000 TEUs, while smaller feeder vessels may carry less than 1,000 TEUs.

Classification of container ships by TEU capacity:

• Small feeder: Up to ~ 1,000 TEUs
• Feeder: ~ 1,000 to ~ 2,000 TEUs
• Feedermax: ~ 2,000 to ~ 3,000 TEUs
• Panamax vessels: ~ 3,000 to ~ 5,000 TEUs
• Post-Panamax vessels: ~ 5,000 to ~ 10,000 TEUs
• New Panamax (Neopanamax) vessels: ~ 10,000 to ~ 14,500 TEUs
• Ultra Large Container Vessels (ULCV): ~ 14,500 TEUs and above

Currently, the largest container ship in the world belongs to HMM (South Korea) with the following specifications: length 399.9 m, width 61 m, height 70 m, and a capacity of 23,964 TEUs.

TEU plays a critical role in standardizing global container transportation. Below are four key roles of TEU:

Before TEU was widely adopted, different container sizes made data collection and analysis complicated. TEU helps to:

• Reduce confusion
• Simplify calculations
• Standardize data across regions, ports, and shipping routes

This is especially important in big data processing within the logistics industry.

Ports need to clearly understand:

• Maximum handling capacity
• Number of containers stored in yards
• Container turnaround capability

Using TEU allows ports to:

• Plan operations more effectively
• Increase crane capacity
• Upgrade container yards
• Optimize yard layout and cargo flows

For import and export businesses:

• Understanding TEU helps estimate costs
• Calculate monthly cargo volumes
• Plan bookings during peak seasons

Example: If a company exports 50 x 40-foot containers per month, this is equivalent to 100 TEUs – a figure that is highly meaningful for shipping lines and freight forwarders.

The strength of a shipping line is not only reflected in the number of vessels but also in total capacity measured in TEUs. Example: major global carriers such as MSC, Maersk, and CMA CGM are ranked primarily based on their total TEU capacity.

• The adoption of TEU as a standard unit has enabled major breakthroughs in maritime transport, making it easier to measure capacity and calculate total cargo volumes handled by each port.
• In addition, TEU is widely used in cargo statistics reports at individual ports and serves as a standard measurement unit for international financial institutions.
• It can be said that the introduction of containers and the TEU measurement system has significantly improved global cargo transportation efficiency. Recent statistics show that over 200 million containers are transported worldwide each year, driving the growth of maritime transport in particular and the logistics industry as a whole.

Through this article, you now clearly understand what is TEU, how TEU conversion works, and why this unit is so important in logistics and maritime transport. TEU is not only a technical measurement but also a key indicator reflecting global trade power, directly impacting transportation activities, costs, and business competitiveness.

For comprehensive logistics services and detailed consultation, please contact:
SAS LOGISTICS JSC
T: 028 38 48 8575
W: https://saslogistics.vn/
ZALO OA: https://zalo.me/227135675784858581?src=qr
A: 5th Fl., 28 Truong Son Building, 28 Truong Son, Tan Son Hoa, Ho Chi Minh City, Vietnam.