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TEU, FEU and the container – the dimensions that run world trade

TEU, FEU and the container standards explained: what the unit actually counts, why the 40-footer dominates, what the number on the side means, and why the standardisation mattered more than the box itself.

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What this covers

  1. What a TEU actually is, and why it is not a container
  2. FEU, and why the 40-footer is the common one
  3. The height that is not in the name
  4. The other types – reefer, open top, flat rack, tank
  5. The number on the side, and what each part means
  6. The size and type code
  7. Filling up on weight or on volume

What this covers (cont.)

  1. Why the standard mattered more than the box

A TEU is a counting unit

TEU stands for twenty-foot equivalent unit – a 20-foot container converted into a counting unit.

Why it is needed: containers come in several lengths. To state capacity you need one common unit rather than a list.
What it means in practice: a 20-footer is 1 TEU. A 40-footer is 2 TEU.
The trap: "24,000 TEU" is not a number of containers. If half the slots are filled with 40-footers, the number of boxes is far lower than the figure suggests.

The height that is not in the name

The names give length. They say nothing about height, and that is where a practical trap lies.

The common types

TypeWhat it isTEU
20' standardThe base unit. Heavy cargo that does not take much space.1
40' standardDouble the length, same height.2
40' high cubeAs above, but a foot taller. More volume, same floor area.2
45' high cubeLonger again. Used a fair amount in Europe.2 (usually counted so)
Note the right-hand column. A high cube gives more volume but still counts as two TEU. That is one reason TEU figures are a coarse measure: two ships with the same TEU capacity can carry different amounts of goods, depending on what kinds of boxes are actually there.

The number on the side

Every container has a unique number, and it is built to a standard: ISO 6346. Eleven characters, each part with a job.

The four parts

  1. Owner code – three lettersIdentifies the owner or principal operator. The codes are registered with BIC, which has maintained the register since 1970.
  2. Equipment identifier – one letterU for freight containers, J for detachable related equipment, Z for trailers and chassis.
  3. Serial number – six digitsThe owner chooses it.
  4. Check digit – one digitCalculated from the ten preceding characters, and catches misreadings and typing errors.
If this reminds you of the GS1 episode, that is no accident. The principle is exactly the same: an issuer hands out a prefix, the owner fills in the rest, and a check digit at the end lets systems catch typing errors. The calculation for containers differs from the GS1 one and is specified in ISO 6346 – BIC provides a calculator for it.

Weight or volume

This is the most practical part of the episode, and it applies to anyone who has ever booked a container.

Two ways to run out

Cube out

Full on volume

  • The container is full but well under the weight limit
  • Typically light and bulky: cushions, packaging, plastics
  • Height pays here – a high cube gives more for the same lift

Weigh out

Full on weight

  • The weight limit is reached with the container half empty
  • Typically heavy and compact: liquids, metal, stone, machine parts
  • Here the 20-footer is often the right choice
This explains why heavy cargo often goes in 20-footers while light cargo goes in 40-footers: the length is no use to you if you hit the weight limit first anyway. An experienced forwarder knows which of the two binds before the container is booked.

Why the standard mattered more than the box

Finally the real point, which is the same as in the barcode episode.

Before and after

Break bulk

Everything handled separately

  • Sacks, crates and barrels loaded one at a time
  • Many hands per tonne
  • Long time alongside in port
  • Pilferage and damage on the way

Container

Everything handled alike

  • One box, one lift, whatever is inside
  • The same corner castings the world over
  • Ship, train and lorry use the same unit
  • Sealed from sender to receiver
A steel box is not an invention anyone can patent. The valuable thing was the agreement: that the corners sit in exactly the same place on every container in the world, so that any spreader fits. Without that agreement a container is just an expensive crate.

What is worth taking with you

That a TEU is a counting unit and not a container, and that a TEU figure therefore says less than it appears to.

Key points

  • A TEU is a unit of measure, not a container. It is a 20-footer converted into a counting unit.
  • A 40-footer is 2 TEU, and is called an FEU. Most containers in circulation are 40-footers.
  • A high cube is a foot taller than standard, and still counts as the same number of TEU.
  • The number on the side follows ISO 6346: owner code, equipment identifier, serial number and check digit.

Key points (cont.)

  • You run out of volume or of weight – rarely both at once.
  • The valuable thing was never the box, but that everyone agreed on the dimensions.

Questions this answers

  • What does TEU mean?
  • What is the difference between TEU and FEU?
  • How big is a 20-foot container?
  • What is a high cube?
  • What do the letters and numbers on the side of a container mean?
  • What is the difference between cubing out and weighing out?

Questions this answers (cont.)

  • Why is the container so important?

Sources

  • BIC – Container Identification Number (ISO 6346)
  • BIC – Container Size and Type Code
  • ISO 6346:2022 – Freight containers: Coding, identification and marking

Spørretimen

Read the whole thing at

www.sporretimen.no/en/episodes/container-teu-feu/