In the field of logistics and shipping, TEU is a familiar concept, plays an important role in measuring and managing goods. So what is TEU?? How is it used in port operations?? Let's explore details with Cuong Quoc Logistics through the article below.

What is TEU?

not, Abbreviation for Twenty-foot Equivalent Unit, is a unit equivalent to a 20-foot container, used to measure cargo capacity in shipping and port management. One TEU corresponds to a standard sized container of 20 feet (long) × 8 feet (wide) × 8,6 feet (cao), equivalent to about 38,5 m³.

TEU is considered the international standard unit for calculating ship capacity, port, or warehouse, helps simplify the comparison and management of containerized cargo volumes. For example, A 40-foot container is calculated as 2 TEU, because it is twice the length of a 20-foot container.

In port operations, TEU is used to evaluate cargo handling capacity, Planning for loading and unloading, and calculate shipping costs. This is an important index that helps stakeholders in the logistics industry synchronize and optimize operating processes.

TEU's Role in Shipping and Port Management

TEU plays a core role in the shipping industry and port management, brings many benefits:

• Measure capacity: TEU helps determine the number of containers a ship or port can handle, thereby optimizing storage and transportation space.

• Calculate costs: Based on TEUs, Shipping lines and ports calculate shipping costs, loading and unloading fees, and related costs, ensure transparency and consistency.

• Logistics planning: TEU supports ports and shipping companies in loading and unloading planning, container layout, and manage the flow of goods effectively.

• Compare port capacity: TEU is an international standard, allows comparison of cargo handling capacity between ports globally, From there evaluate operational efficiency.

• Statistical and analytical support: TEU data is used to analyze transportation trends, demand forecast, and build a logistics industry development strategy.

For example, if a port reports a throughput of 1 million TEU per year, This means that that port handled goods equivalent to 1 million 20-foot containers or 500.000 container 40 feet.

Types of Containers and TEU Conversion

To clearly understand how to use TEU, Need to understand common types of containers and how to convert them to TEU:

• Container 20 feet (1 NO): Standard size, Usually used for goods of moderate weight.

• Container 40 feet (2 NO): Twice the length of a 20-foot container, popular in sea transport.

• Container 40 feet cao (High Cube, 2 NO): Similar to a 40 foot container but taller (9,6 feet), Provides additional storage space.

• Container 45 feet (2,25 NO): Longer, Suitable for bulky or large volume goods.

Besides, There are also special types of containers such as refrigerated containers, container with open roof (open top), or flat container (flat rack), but TEU is still calculated based on the equivalent length of a 20-foot container.

How to Calculate TEU in Sea Transport

The calculation is quite simple, based on quantity and type of containers:

• Basic formula:
  Total TEU = (Số container 20 feet × 1) + (Số container 40 feet × 2) + (Số container 45 feet × 2,25)

Illustrative example:
A ship carries 500 20-foot containers, 300 container 40 feet, and 100 45-foot containers. The total is calculated as follows:
Total TEU = (500 × 1) + (300 × 2) + (100 × 2,25) = 500 + 600 + 225 = 1,325 NO

This means the ship has a capacity equivalent to 1,325 20-foot containers.

TEU Application in Port Operations

In port operations, TEU is used in many aspects:

1. Port Capacity Assessment

Is the main index to evaluate the port's cargo throughput. A port with high throughput is often considered a major port, Capable of handling large volumes of goods. For example, Cat Lai port (Ho Chi Minh City) is one of the ports with the highest TEU throughput in Vietnam.

2. Planning for Loading and Unloading

The port is used to plan the loading and unloading of containers onto ships or from ships to yards. TEU numbers help determine the number of cranes, forklift, and necessary manpower, thereby optimizing processing time.

3. Cost Calculation

Port handling and storage fees are usually calculated based on TEU. For example, A port may apply a fee of 50 USD/TEU for loading and unloading services, Helps businesses easily estimate costs.

4. Yard Space Management

Helps the port manage container yard space, Ensure reasonable arrangement between 20-foot containers, 40 feet, or 45 feet. This is especially important for large ports, where thousands of containers are handled every day.

5. Analysis and Forecasting

TEU data is used to analyze transportation trends, forecasting demand for goods, and planning for port infrastructure expansion. For example, if TEU throughput increases sharply, The port may need to invest in additional cranes or expand the storage yard.

Benefits of TEU in Logistics

• International standardization: is a globally unified unit, help relevant parties (shipping company, port, business) Easy to communicate and compare.

• Process optimization: Helps simplify capacity calculations, expense, and transportation planning, thereby saving time and resources.

• Increase transparency: The parties can calculate exact costs, avoid disputes or misunderstandings.

• Support commercial development: is a tool to evaluate the performance of ports and ships, contributing to promoting international trade.

Some Notes

• Determine the container type: For accuracy, Need to know clearly the type of container (20 feet, 40 feet, hay 45 feet) and converted according to standard rates.

• Update port regulations: Each port may apply different TEU fee calculation or management methods, Therefore, businesses need to check specific regulations.

• Check ship capacity: When planning transportation, It is necessary to ensure that the number of TEUs does not exceed the ship's capacity to avoid lack of space.

• Calculate reasonable costs: Businesses should compare costs based on TEUs between ports and shipping lines to choose the optimal solution.

Support Services From Logistics Powerhouse

Logistics power, with more than 10 years of experience in the field of transportation and logistics, provides consulting and support services, Helps businesses optimize transportation and goods management processes. Our services include:

• Support in handling customs procedures and loading and unloading containers.

• Shipping sea, air, road, and domestic.

• Import-export entrusted services and international express delivery.

Conclude

TEU is an important unit of measurement in shipping and port management, helps standardize and optimize logistics processes. Understanding and using it will help businesses manage goods effectively, Save costs and time. Follow Cuong Quoc Logistics to update more useful information about transportation and import-export!

Cuong Quoc Freight Forwarding Company Limited

Office: 7th floor, Parami Building, 140 Bach Dang, Tan Son Hoa Ward, Ho Chi Minh City

Hotline: 0972 66 71 66

Email: info@cql.com.vn

Website: https://cql.com.vn/