Why Timber Dunnage is Replacing Pallets in The Industrial World

Feb 04, 2026

In the world of logistics and materials handling, pallets have long been the standard for transporting and storing goods. But lately, we’ve seen a growing shift, particularly in heavy industry and manufacturing: more businesses are turning to timber dunnage instead of traditional pallets.

At Pace Pallet Services, based in Wetherill Park, we've seen a significant increase in requests for custom timber dunnage from businesses across Sydney and regional NSW. Whether it's construction materials, steel, pipework, or other large goods, timber dunnage is proving to be a more practical, cost-effective, and fit-for-purpose alternative in many cases.

In this article, we’ll break down:

What timber dunnage is and how it’s used
Why dunnage is replacing pallets in certain industries
Real- world examples from Sydney and NSW businesses
How to know if dunnage is right for your operation
Where to source high- quality, locally made timber dunnage

What Is Timber Dunnage?

Timber dunnage refers to timber blocks, bearers, or gluts used to support, stabilise, or separate goods during storage and transport. Unlike a pallet, which is a fully assembled platform, dunnage is a more flexible material that can be customised to specific shapes, sizes, and load requirements.

It’s often used in:

Supporting steel or pipe during shipping
Separating heavy items in containers or trucks
Securing machinery or irregular loads
Preventing damage to products in transit

Depending on the industry, dunnage may be used in place of a pallet, especially where:

The product is too large or long for standard pallets
A full pallet isn’t needed for short- haul or internal storage
Space- saving and cost reduction are a priority

We manufacture and supply a wide range of custom timber dunnage solutions that are cut, treated and prepared to match your operational needs.

Why More Industrial Businesses Are Choosing Dunnage Over Pallets

While pallets still play a vital role across logistics and warehousing, there are several reasons why timber dunnage is gaining ground in industrial applications.

1. Cost- Effectiveness

One of the most common reasons clients make the switch is cost. Timber dunnage is cheaper to produce than full pallets. There are fewer materials, no need for assembly, and custom sizes are easy to cut to order.

For businesses moving bulky or low- volume goods, using dunnage instead of full pallets can result in significant savings over time.

2. Customisation and Flexibility

Unlike standard pallets, dunnage can be made in virtually any length, width or profile. Whether you need 100 mm square bearers, 2400mm lengths, or timber with specific strap grooves or chamfers, we can tailor dunnage to suit:

Pipe and tube diameters
Machinery base footprints
Racking and transport configurations
On- site handling methods

This makes it ideal for businesses in construction, civil works, and heavy manufacturing where standardised pallets just don’t cut it.

3. Better for Oversized or Irregular Loads

If your goods are too wide, too heavy, or shaped in a way that doesn’t sit comfortably on a pallet, dunnage allows you to create your own support structure. This improves:

Safety during loading and unloading
Freight stability
Protection from damage

Dunnage is commonly used for long lengths of timber, steel beams, PVC pipe, scaffolding, and precast concrete. It provides spacing from the ground, clearance for forklifts, and secure stacking - all without needing a bulky pallet underneath.

4. Simplified Internal Handling

For some businesses, dunnage is used entirely within their own warehouse or yard. In these cases, full pallets can be overkill. Timber dunnage offers:

Easier internal transport
Less storage space
Faster movement of raw materials

We’ve seen this in use across NSW with companies managing construction materials or prefab components. They no longer waste time tracking pooled pallets or managing returns - instead, they use simple dunnage that stays with the product.

Examples from NSW Industry

Case Study: Steel Distributor in Western Sydney

A steel supplier in Smithfield came to us frustrated with high pallet costs. Their bundles of galvanised pipe weren’t sitting well on standard pallets, and many were getting damaged in transit. They also didn’t need pallets going out to certain job sites.

We supplied them with 75mm x 75mm hardwood dunnage, pre- cut to fit their pipe bundles. Each length was notched for secure strapping. Within weeks, they had reduced their pallet spend by over 30% and improved safety during forklift handling.

Case Study: Civil Infrastructure Yard in Wetherill Park

Another client, a civil contractor based locally in Wetherill Park, needed a simple way to store and move concrete stormwater pits. Pallets were unnecessary due to the size and weight of the products. We worked with them to deliver high- strength timber dunnage cut to exact dimensions. This allowed forklifts to access loads easily and saved thousands in unnecessary pallet manufacturing.

When Should You Use Dunnage Instead of Pallets?

Dunnage might be the better option if:

You handle long, heavy, or oddly- shaped materials
You need a cost- effective alternative for transport or yard storage
You aren’t sending goods into a pooled pallet system
You’re working in construction, steel, manufacturing or infrastructure
You want to improve efficiency in internal movements

At Pace Pallet Services, we’ll help you decide whether pallets or dunnage make more sense for your operation. Every product and workflow is different - we work with you to supply the right solution.

What Kind of Dunnage Can You Order?

We offer: