To ensure the safe transportation of steel coils by ships and address the insufficient understanding of the load transfer function of dunnage in actual transportation, ABAQUS and Hypermesh softwares are employed to conduct the finite element simulation on the stowage conditions of steel coils in handy-size bulk carriers. The factors affecting the load transfer of dunnage are analyzed and compared. Considering the influence of vertical dynamic loads, the stress distribution of the cargo area is analyzed under different dunnage (materials, sizes, and quantities) and different stowage positions. A comprehensive analysis of the effectiveness of dunnage in transferring loads is carried out, resulting in generalizable conclusions. These findings provide practical guidance for selecting appropriate dunnage and correctly stowing steel coils.