diff --git a/backend/spec/features/admin/orders/shipments_spec.rb b/backend/spec/features/admin/orders/shipments_spec.rb
index c04a08987f7..db38be271bd 100644
--- a/backend/spec/features/admin/orders/shipments_spec.rb
+++ b/backend/spec/features/admin/orders/shipments_spec.rb
@@ -79,5 +79,26 @@ def ship_shipment
       expect(page).to have_css("#shipment_#{shipment2.id} tr.stock-item", count: 2)
       expect(page).to have_css("#shipment_#{shipment1.id} tr.stock-item", count: 3)
     end
+
+    context "with a ready-to-ship order" do
+      let(:variant) { create(:variant) }
+      let!(:order) do
+        create(
+          :order_ready_to_ship,
+          number: "R100",
+          line_items_attributes: [{ variant: variant, quantity: 5 }]
+        )
+      end
+
+      it "can transfer all items to a new location" do
+        expect(order.shipments.count).to eq(1)
+
+        within_row(1) { click_icon 'arrows-h' }
+        complete_split_to('LA', quantity: 5)
+
+        expect(page).to_not have_content("package from 'NY Warehouse'")
+        expect(page).to have_content("package from 'LA'")
+      end
+    end
   end
 end
diff --git a/core/app/models/spree/inventory_unit.rb b/core/app/models/spree/inventory_unit.rb
index c9440cd87ea..ac3acaf42f6 100644
--- a/core/app/models/spree/inventory_unit.rb
+++ b/core/app/models/spree/inventory_unit.rb
@@ -141,7 +141,7 @@ def ensure_can_destroy
         throw :abort
       end
 
-      unless shipment.pending?
+      if shipment.shipped? || shipment.canceled?
         errors.add(:base, :cannot_destroy_shipment_state, state: shipment.state)
         throw :abort
       end
diff --git a/core/app/models/spree/shipment.rb b/core/app/models/spree/shipment.rb
index 424382bf0b1..e64de7426a2 100644
--- a/core/app/models/spree/shipment.rb
+++ b/core/app/models/spree/shipment.rb
@@ -391,7 +391,7 @@ def set_cost_zero_when_nil
     end
 
     def ensure_can_destroy
-      unless pending?
+      if shipped? || canceled?
         errors.add(:state, :cannot_destroy, state: state)
         throw :abort
       end
diff --git a/core/spec/models/spree/inventory_unit_spec.rb b/core/spec/models/spree/inventory_unit_spec.rb
index 458b89455d9..fc250b79115 100644
--- a/core/spec/models/spree/inventory_unit_spec.rb
+++ b/core/spec/models/spree/inventory_unit_spec.rb
@@ -289,11 +289,10 @@
       expect { inventory_unit.reload }.not_to raise_error
     end
 
-    it "cannot be destroyed if its shipment is ready" do
+    it "can be destroyed if its shipment is ready" do
       inventory_unit = create(:order_ready_to_ship).inventory_units.first
-      expect(inventory_unit.destroy).to eq false
-      expect(inventory_unit.errors.full_messages.join).to match /Cannot destroy/
-      expect { inventory_unit.reload }.not_to raise_error
+      expect(inventory_unit.destroy).to be_truthy
+      expect { inventory_unit.reload }.to raise_error(ActiveRecord::RecordNotFound)
     end
 
     it "cannot be destroyed if its shipment is shipped" do
diff --git a/core/spec/models/spree/shipment_spec.rb b/core/spec/models/spree/shipment_spec.rb
index 06ea05db799..fd85241dc09 100644
--- a/core/spec/models/spree/shipment_spec.rb
+++ b/core/spec/models/spree/shipment_spec.rb
@@ -724,11 +724,10 @@
       expect { shipment.reload }.to raise_error(ActiveRecord::RecordNotFound)
     end
 
-    it "cannot be destroyed when ready" do
+    it "can be destroyed when ready" do
       shipment = create(:shipment, state: "ready")
-      expect(shipment.destroy).to eq false
-      expect(shipment.errors.full_messages.join).to match /Cannot destroy/
-      expect { shipment.reload }.not_to raise_error
+      expect(shipment.destroy).to be_truthy
+      expect { shipment.reload }.to raise_error(ActiveRecord::RecordNotFound)
     end
 
     it "cannot be destroyed when shipped" do