Definition – TEU stands for Twenty-Foot Equivalent Unit which can be used to measure a ship’s cargo carrying capacity. The dimensions of one TEU are equal to that of a standard 20′ shipping container. 20 feet long, 8 feet tall. Usually 9-11 pallets are able to fit in one TEU. Two TEUs are equal to one FEU (forty-foot-equivalent unit).
Example – The world’s largest container ships can carry in excess of 14,000 TEUs.