Logistics Terms
What Is a TEU? Container Capacity Explained
3 min read
TEU stands for twenty-foot equivalent unit. It is the standard way the shipping industry measures container capacity, used for everything from vessel size to port throughput statistics.
TEU and container sizes
- One 20-foot container equals 1 TEU.
- One 40-foot container equals 2 TEU.
- Vessel and terminal capacity are quoted in TEU (for example, a 20,000-TEU ship).
Why TEU is used
Because containers come in different lengths, the TEU gives a single, comparable unit for counting and capacity planning. It does not measure weight or value, only the standardised container volume.