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Have you ever come across the terms TEU and FEU when researching freight quotes or planning the transportation of goods? These two acronyms are essential in foreign trade and often cause confusion. In this article, we will break down what each one means, their origin, and why understanding them makes all the difference in your logistics operation.

What is TEU?

TEU stands for Twenty-foot Equivalent Unit, ou seja, Unidade Equivalente a 20 pés. It is a standard measure created to facilitate the calculation of the capacity of ships, terminals, trains, and trucks.

• 1 TEU=1 20-foot container (approximately 6.1 meters in length)

In practical terms, any 20-foot equipment, regardless of height or width, counts as 1 TEU.

What is FEU?

FEU is the acronym for Forty-foot Equivalent Unit, ou seja, Unidade Equivalente a 40 pés.

 • 1 FEU=1 40-foot container (about 12.2 meters in length)

Due to standardization, 1 FEU is equivalent to 2 TEUs, as it occupies twice the space of a 20-foot container.

Why did these acronyms arise?

In the post-World War II period, with the massive adoption of containers, it became urgent to standardize sizes and capacities to optimize intermodal transport (ship, train, and truck). Thus, a universal system of units of measurement was born: TEU and FEU. Thanks to this standardization:

• Simplified capacity calculation: Operators and terminals can estimate how many containers fit on a ship or in a warehouse with a single parameter.

• Standardized freight negotiation: Shipping companies quote values per TEU, even when the equipment is an FEU.

• Optimized logistics: It facilitates cargo planning, avoiding empty spaces and reducing costs.

When to use TEU or FEU in practice?

• Freight quotation: Companies usually provide prices per TEU. If you have an FEU, remember that it corresponds to 2 TEUs.

• Cargo planning: When calculating the occupancy of warehouses, intermodal platforms, or ship decks, always convert FEUs to TEUs to have a uniform view of capacity.

• Reports and indicators: Always use the same unit (TEU) to compare periods, routes, and equipment consistently.

Recap

Genco Tip

Master this conversion and avoid surprises when negotiating freight or allocating transport space. Understanding TEU and FEU is fundamental for anyone working with import, export and logistics planning.

Avoid mistakes when importing!

Having a specialized import consultancy can save you from many future risks. See what Genco Import & Export can do for you:

• Sourcing your product to find the best value for your product.
• Simulating all costs before you embark on this journey.
• Negotiating values with suppliers, freight forwarders, and customs brokers.
• Unifying all documents. Less headache for you!
• Closing the exchange rate for your process.
• Conducting inspections and issuing complete reports for your follow-up.

And much more!

Count on Genco for the best advisory for your imports.

Contact us and learn more about our services!