Manufacturing, autos and logistics
TEU (twenty-foot equivalent unit)
The standard measure of container volume: one 20-foot container.
Last reviewedWhat does TEU (twenty-foot equivalent unit) mean?
A TEU is the capacity of one standard 20-foot shipping container, the unit used to measure ship sizes and port traffic. A 40-foot container counts as 2 TEU and is sometimes called an FEU (forty-foot equivalent unit). The largest container ships now carry more than 20,000 TEU. Example: a port handling 40,000 moves a day, split evenly between 20-foot and 40-foot boxes, handles 20,000 x 1 + 20,000 x 2 = 60,000 TEU a day. Freight rates are often quoted per FEU, so a rate of 2,000 per FEU is 1,000 per TEU.
Where does it come up in case interview prep?
- How logistics works: carriers, forwarders, warehouses, ports and the last mileLesson in Logistics, shipping, ports and supply-chain services
- Logistics economics and operations: voyages, rerouting, warehouses and the last mileLesson in Logistics, shipping, ports and supply-chain services
- Logistics players, hubs and trade lanes, trends 2024 to 2026, and how to crack the casesLesson in Logistics, shipping, ports and supply-chain services
Related terms
- Transshipment hubA port where containers are moved between ships on their way to other destinations.
- Dwell timeHow long a container, truck or shipment waits at a port or terminal before moving on.
- Capacity utilizationActual output as a share of the most that could be produced.
- OEM (original equipment manufacturer)In autos and machinery, the company that designs, assembles and brands the final product.
- Tier 1 supplierA supplier that sells complete parts or systems directly to the carmaker.
- Vehicle platformA shared set of engineering underpinnings used for many car models.
- Battery pack costThe cost of an electric vehicle's battery pack, usually quoted per kWh of capacity.
- Installed baseThe number of a company's machines or systems currently in use at customers.