Twenty-foot equivalent unit

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Twenty-foot equivalent unit (TEU) is a standard measure used in the shipping industry to quantify cargo capacity for container ships and container terminals. It is based on the volume of a 20-foot-long intermodal container, a standard-sized metal box which can be easily transferred between different modes of transportation, such as ships, trains, and trucks.

Overview[edit | edit source]

The TEU is an important unit of measure in the logistics and transportation sectors. It allows for a standardized way to compare the capacity of different vessels and terminals, facilitating global trade and commerce. A single TEU represents the dimensions of a standard 20-foot container, which is typically 20 feet long, 8 feet wide, and 8.5 feet high.

History[edit | edit source]

The concept of the TEU was developed in the 1950s, alongside the advent of containerization. Malcolm McLean, an American trucking entrepreneur, is often credited with pioneering the use of standardized containers, which revolutionized the shipping industry by significantly reducing the time and cost of loading and unloading cargo.

Usage[edit | edit source]

TEUs are used to describe the capacity of container ships and the throughput of container terminals. For example, a container ship that can carry 10,000 TEUs can hold 10,000 standard 20-foot containers. Similarly, a port's capacity might be described in terms of the number of TEUs it can handle annually.

Comparison with Forty-foot Equivalent Unit[edit | edit source]

Another common unit of measure is the forty-foot equivalent unit (FEU), which represents the volume of a 40-foot container. One FEU is equivalent to two TEUs. This unit is also widely used in the shipping industry, especially for larger containers.

Significance in Global Trade[edit | edit source]

The TEU is a critical metric in global trade, as it provides a standardized way to measure and compare the capacity of different shipping and logistics operations. It is used by shipping companies, port authorities, and logistics providers to plan and optimize the movement of goods around the world.