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You can delete a Pending shipment from the Shipments list. On hold and Cancelled are statuses you see on the list and can filter on. The shipment page has no Hold and no Cancel button. Those statuses are set by automations. Related: Send a shipment, Create a shipment.
Delete removes the shipment for good. You type the shipment’s reference to confirm. Only Pending shipments can be deleted. For any other status, deleting fails with Some of the details aren’t valid. Check them and try again.

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What you can do, and where

The buttons at the top of a shipment are Send shipment or Retry sending (on Pending or Error) and sometimes Create return shipment. None of them holds, cancels or deletes. See Send a shipment.

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Delete a shipment

Open Shipments and click the ⋮ menu at the end of the row:
Shipments list row menu with View and DeleteShipments list row menu with View and Delete

The row menu on the Shipments list: View and Delete

1

Click Delete

A window titled Delete shipment opens. It names the shipment and warns that it will be deleted for good and cannot be undone.
2

Type the reference

Type the shipment’s reference exactly as shown. Delete stays grayed out until it matches.
3

Click Delete

You see Shipment deleted. If it fails, you see Couldn’t delete shipment or the reason, and the shipment stays.
Delete shipment confirmation asking you to type the shipment referenceDelete shipment confirmation asking you to type the shipment reference

Delete shipment: type the reference to make Delete available

Deleting a Pending shipment counts as cancelling it: it starts automations that begin with Shipment cancelled, and sends the Shipment cancelled event to your webhooks. The automation action Cancel shipment does not do this.

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On hold and Cancelled

On the Shipments list, the Status filter lets you pick Draft, Pending, Processing, Sent, Partly sent, Error, Cancelled and On hold. These are the same words as on the status badge. See Search and filters.
Filters with the Status options, including Cancelled and On holdFilters with the Status options, including Cancelled and On hold

The Status filter on Shipments: Cancelled and On hold are statuses to filter on, not buttons

On the Dashboard, On hold shipments are counted with the pending ones. An On hold shipment cannot be sent, and the shipment page has no button to release it.

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Hold or cancel with an automation

In the automation builder, both actions are under Shipments. Neither has any settings. There is no setting to also cancel the label with the carrier, neither on the shipment nor on the carrier. See Carrier credentials.
To remove a shipment you have not sent yet: Shipments → row menu → Delete → type the reference. To stop a shipment from being sent without deleting it, use the automation action Set shipment on hold or Cancel shipment, then filter the list on On hold or Cancelled.