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container capacity

Dec 6, 2015

Container capacity is the first issue that any international business company should consider, when they need to deliver huge amount of products to abroad. Usually, different container capacity decides the scale of international business.

Container capacity is often expressed in twenty-foot equivalent units (TEU, or sometimes teu). A twenty-foot equivalent unit is a measure of containerized cargo capacity equal to one standard 20-foot (6.1 m) long container. This is an approximate measure, wherein the height of the box is not considered. For example, the 9 ft 6 in (2.9 m) tall high-cube, as well as 4-foot-3-inch (1.3 m) half-height 20-foot (6.1 m) containers are equally counted as one TEU. Similarly, extra long 45 ft (13.72 m) containers are commonly designated as two TEU, no different than standard 40 feet (12.19 m) long units. Two TEU are equivalent to one forty-foot equivalent unit (FEU).

The development of container shipping was twice as powerful a driver of “globalization” as trade policy from the 1960s to the early 1990s. This is because it brought massive gains in efficiency. As the paper points out, a British port using gangs of stevedores in 1965 could load 1.7 tons of cargo per worker per hour onto a ship; in 1970 after adopting containers and the increase of container capacity, the same port did 30 tons per worker per hour.

The fact that the container capacity of the fleet grew by a quarter in the single year 2013, and has essentially doubled over the course of the past four years, will probably also have a very powerful effect: as the physical costs of trade fall, consumer-goods tariff systems continue to become less effective, and more like taxes than like trade policy; value chains become more complex and closely integrated; consumer prices fall; and ‘globalization’ accelerates.

Container capacity has been increased since the development of container making technology. There is no way that we cannot believe that we can make any kind of container to satisfy the need of international transportation.

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