Table of Contents

TEU Calculations

Introduction

TEU (Twenty-foot Equivalent Unit) is a standard unit of measurement used in the shipping industry to describe the cargo capacity of container ships and terminals. One TEU represents the capacity of a standard 20-foot shipping container. The system automatically calculates the TEU value for document lines based on the movement type, equipment, and cargo information.

The calculated TEU value is stored in the Calculated TEU field on document lines and can be used for reporting, capacity planning, and rate calculations.

How TEU is Calculated

The system calculates TEU for document lines of type Cargo or Equipment based on the following priority:

  1. Custom calculation from Consignee Address: If a consignee address has a TEU calculation method configured, this takes precedence.
  2. Movement Type-based calculation: Based on whether the movement type is FCL (Full Container Load) or LCL (Less than Container Load).

The calculation is performed automatically when document lines are created or modified, and the result is stored in the Calculated TEU field.

FCL TEU Calculation

For FCL (Full Container Load) movements, TEU is calculated for Equipment type document lines based on the container size and equipment quantity.

The calculation formula is:

TEU = (Container Length in Feet / 20) × Equipment Quantity

Example

  • Container Size: 40 feet
  • Equipment Quantity: 2 containers
  • Calculation: (40 / 20) × 2 = 4 TEU

Requirements for FCL Calculation

  • The document line must be of type Equipment
  • The Movement Type field must be set to FCL
  • The No. field must reference a valid container size from the Container Sizes table
  • The container size must have a Length Feet value defined
  • The Equipment Quantity field must be filled

LCL TEU Calculation

For LCL (Less than Container Load) movements, TEU is calculated for Cargo type document lines using one of two methods:

Method 1: Fixed TEU Value

If the cargo has a Fixed TEU value defined on the Goods card, the calculation is:

TEU = Fixed TEU × No. of Outer Packages

Method 2: Chargeable Weight Conversion

If no Fixed TEU is defined, the system uses the chargeable weight and a conversion factor:

TEU = Chargeable Weight × TEU Conversion Factor

The TEU Conversion Factor is retrieved from the Order Type associated with the document header. The chargeable weight is calculated based on the document line's weight and dimensional information.

Requirements for LCL Calculation

  • The document line must be of type Cargo
  • The Movement Type field must be set to LCL
  • The No. field must reference a valid cargo from the Goods table
  • For Method 1: The cargo must have a Fixed TEU value defined
  • For Method 2: The document's Order Type must have a TEU Conversion Factor defined, and the document line must have sufficient weight or dimensional data to calculate chargeable weight

Custom TEU Calculation from Consignee Address

You can configure a custom TEU calculation method at the consignee address level. When a document uses a consignee address with a TEU calculation configured, this method takes precedence over the standard FCL or LCL calculations.

Setting Up Custom TEU Calculation

  1. On the Addresses page, open the consignee address.
  2. In the Consignee TEU Calculation field, select an Agreement Quantity Calculation record.
  3. The selected quantity calculation must have a Function Set ID configured that returns a decimal value representing the TEU.

When a document line is processed, if the document header has a consignee address with a TEU calculation method, the system uses this custom calculation instead of the standard FCL or LCL methods.

Setup Requirements

To ensure accurate TEU calculations, configure the following master data:

Container Sizes

  • Set up container sizes with accurate Length Feet values
  • Common container sizes:
    • 20 feet container = 1 TEU
    • 40 feet container = 2 TEU
    • 45 feet container = 2.25 TEU

Goods (Cargo)

  • Optionally define Fixed TEU values for cargo items that have a consistent TEU per package
  • This is particularly useful for standardized cargo types

Order Types

  • Define TEU Conversion Factor for order types used in LCL shipments
  • The conversion factor represents the number of TEU per unit of chargeable weight
  • This factor is used when cargo does not have a Fixed TEU value

Addresses

  • Optionally configure Consignee TEU Calculation for addresses that require custom calculation methods
  • This requires setting up an Agreement Quantity Calculation with a function set that returns the TEU value

Viewing Calculated TEU

The calculated TEU value is displayed in the Calculated TEU field on:

  • Document Lines page
  • Document Line Card page
  • Shipment Details FactBox (as a total for all lines)

The field shows the TEU value with up to 5 decimal places for precision.

See Also

Container Sizes
Goods
Order Types
Addresses
Quantity Calculations
Shipments

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