Cantilever Racks vs Pallet Racks: How We Choose the Right Storage for Your Goods

You trust your warehouse service to look after your products, but is your reliable 3PL company storing them the right way?

Well, yes, it matters. The type of racking system you use can quietly impact everything from loading speed to product damage, and even how much stock you can actually hold. 

Yet many businesses don’t realise how much rides on this one decision.

That’s where understanding the difference between cantilever racks and pallet racks comes in. 

They’re both essential tools in modern logistics, but built for completely different kinds of goods. 

In this article, we’ll break down Cantilever Racks vs Pallet Racks and how each system works, when to use them, and how we decide when designing storage for different types of inventory.

To understand the difference between cantilever Racks and pallet racks, let’s first understand both of these terms. 

What Are Cantilever Racks (and When Are They the Best Choice)?

Cantilever racks are specially designed for storing long, bulky, or irregularly shaped items that simply won’t fit on traditional pallets. These racks consist of horizontal arms extending from a sturdy vertical frame, creating open shelving that allows forklifts to load and unload items from the side easily.

Typical goods stored on cantilever racks:

• Pipes and tubing

• Timber planks and beams

• Metal bars and rods

• Carpet rolls and other oversized items

Because these items are often long and awkward, cantilever racks provide the flexibility and accessibility without compromising safety or space.

We once worked with a Tasmanian supplier of construction materials who struggled to store their inventory on pallet racks because of the length and weight of timber beams. Switching to cantilever racks not only increased storage density but also reduced handling time by 30% as forklifts could load materials more efficiently from the side without the need to reposition.

Best suited for: Goods that don’t conform to standard pallet dimensions and require easy side access for handling.

What Are Pallet Racks (and When Are They Ideal)?

Pallet racks are the backbone of most warehouse storage systems. Designed to hold palletized goods in multiple vertical tiers, they maximize warehouse space by stacking inventory upward and allowing easy forklift access for loading and unloading.

These racks are ideal for:

• Standard boxed products

• Palletized consumer goods

• Multi-SKU inventory is common in retail, FMCG, and e-commerce sectors

Their modular design supports fast picking, improved inventory management, and efficient space utilization, critical for warehouses managing high volumes and diverse SKUs.

Best suited for: Standardized, palletized inventory requiring high-density storage and quick pick-pack cycles.

Cantilever Racks vs. Pallet Racks: Key Differences

Now, let’s move on to compare Cantilever Racks vs. Pallet Racks. In this comparison, we break down the key differences between these two popular warehouse storage systems to help you decide which suits your inventory best.

Feature	Cantilever Racks	Pallet Racks
Structure	Horizontal arms attached to vertical columns (no front beams)	Upright frames with horizontal beams forming storage bays
Ideal For	Long, bulky, or awkwardly shaped items (e.g., timber, pipes)	Standardized palletized goods or boxed inventory
Load Support	Supported only at one end (via arms)	Supported on all sides (via beams and pallets)
Accessibility	Open front – easy loading/unloading with forklifts	Accessible by forklift but requires front clearance
Adjustability	Arm heights are adjustable to fit various item lengths	Beam levels are adjustable to accommodate different pallet heights
Space Efficiency	Best along walls or in dedicated areas	Highly efficient in vertical space usage
Cost	Usually higher due to specialized design	More cost-effective for general storage
Installation Complexity	Requires precise installation for balance and stability	Generally easier and faster to install
Common Uses	Lumber yards, steel warehouses, plumbing suppliers	Distribution centers, supermarkets, and general warehousing

Why Choosing the Right Racking System Matters to Your Business

Selecting the appropriate storage solution goes far beyond simply stacking inventory. It directly influences the speed, accuracy, and cost-effectiveness of your entire supply chain.

Here’s why getting it right is crucial:

• Operational Efficiency: The right racks streamline picking and packing workflows, reducing the time workers spend locating and handling products. Faster order fulfillment means happier customers and improved throughput during peak demand.

• Space Utilization: Warehousing is expensive, especially in regions like Tasmania and Victoria, where industrial space can be limited or costly. Optimized racking maximizes vertical and horizontal storage, ensuring you get the most out of every square meter, translating into real savings.

• Inventory Protection: Improper storage leads to higher product damage rates, whether from poor access, overcrowding, or unsafe stacking. This directly impacts your bottom line through returns, rework, and lost sales.

• Workplace Safety and Compliance: A well-designed racking system reduces the risk of accidents caused by unstable loads or awkward handling, protecting your workforce and minimizing liability.

• Scalability and Flexibility: As your business evolves, so do your storage needs. The right racking solution allows for easy adjustments, whether that means accommodating new product lines, seasonal surges, or changes in distribution strategy.

In essence, choosing the right smart warehouse type is a foundational decision that shapes how smoothly and profitably your logistics operate. It’s not just about holding goods it’s about powering your supply chain to perform at its best.

How We Determine the Optimal Racking Solution for Your Inventory

Choosing the right racking system isn’t a matter of preference; it’s a strategic decision grounded in detailed analysis. Our approach is data-driven and tailored to your unique inventory profile and operational requirements.

Before recommending cantilever or pallet racks, our logistics experts conduct a comprehensive assessment that includes:

• Product Characteristics: Understanding your products’ dimensions, weight, and packaging shapes is critical. For example, storing long timber on pallet racks wastes space and complicates handling, while using cantilever racks designed for such items maximizes storage density and reduces the risk of damage.

• Operational Demand: Knowing your peak season volumes and turnaround expectations allows us to design racking that supports faster loading/unloading during critical periods. This prevents bottlenecks, ensuring your supply chain keeps pace with demand fluctuations.

• Inventory Flow Patterns: Whether you operate on FIFO or LIFO principles directly impacts rack accessibility. FIFO requires easy access to older stock first, influencing aisle layout and rack selection to avoid costly re-handling or stock obsolescence.

• Environmental and Safety Compliance: Warehouse conditions, including floor load limits, ceiling heights, and safety regulations, must be considered to build a reliable and compliant storage system. This protects your inventory, your team, and your compliance standing.

For example, a prominent Tasmanian furniture retailer initially believed pallet racking was their sole option despite the large, irregular sizes of their inventory. 

After our assessment, we implemented a hybrid racking system, combining cantilever racks for oversized frames and pallet racks for boxed goods. 

This tailored solution reduced loading and unloading times by 25% and halved product damage rates, directly improving operational efficiency and cost-effectiveness.

You may also read: Difference between Branded and Non-Branded Warehouses. 

Addressing Common Misconceptions About Racking Systems

When it comes to warehouse storage, a few myths can cloud decision-making. Clearing them up helps you choose the best solution for your business:

Myth 1: Pallet racks are always cheaper than cantilever racks.	While pallet racks are often seen as the default and more affordable option, this isn’t always the case. Using pallet racks for unsuitable goods like long pipes or timber can lead to inefficient space use and increased handling time, ultimately raising operational costs. Cantilever racks, though sometimes pricier upfront, can save money long-term by optimizing storage and reducing damage.
Myth 2: Cantilever racks are only for lumber or construction materials.	Cantilever racks are versatile and can store any long or bulky items that don’t fit standard pallets. This includes carpets, furniture frames, metal bars, and even certain types of machinery parts. Limiting their use to lumber misses opportunities to improve storage efficiency across various industries.

By understanding these nuances, you can avoid costly mistakes and design a storage system that truly fits your inventory and operational needs

Frequently Asked Questions (FAQs)

How do I know if my goods require cantilever racks or pallet racks?

It depends on the size, shape, and packaging of your inventory. Long, bulky, or irregularly shaped items like timber or pipes are best suited for cantilever racks, while boxed or palletized goods fit well on pallet racks.

Can both cantilever and pallet racks be used in the same warehouse?

Absolutely. Many warehouses use a hybrid approach, combining cantilever racks for specialized items and pallet racks for standard inventory to optimize space and efficiency.

Does choosing the right rack system affect warehouse safety?

Yes. Proper racking reduces the risks of accidents from unstable loads and ensures compliance with safety regulations, protecting both your inventory and workforce.

How often should racking systems be inspected or maintained?

Regular inspections are recommended, typically quarterly or biannually, to check for damage, stability, and compliance with load limits, ensuring longevity and safety.

Can racking systems be adjusted as my inventory changes?

Modern racking solutions are designed to be flexible and scalable, allowing adjustments or expansions as your business grows or product lines evolve.

Conclusion

Choosing between cantilever racks and pallet racks is more than just a storage decision — it’s a strategic move that impacts your warehouse efficiency, product safety, and overall supply chain performance. The right racking system optimizes space, speeds up operations, and reduces costs, all while keeping your goods and team safe.

If you operate in Tasmania or Victoria and want to ensure your logistics and warehousing setups are optimized for your unique inventory needs, our expert 3PL services are here to help. We combine industry knowledge with tailored solutions to keep your business moving smoothly.

Contact us today to discuss how we can design a storage system that fits your goods and streamlines your operations.

Ready to optimise your warehouse storage and boost operational efficiency?

Contact our 3PL experts today to find the perfect racking solution for your inventory

and business needs in Tasmania and Victoria.

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