diff --git a/core/app/models/spree/order.rb b/core/app/models/spree/order.rb
index b6f2fedc978..25628292925 100644
--- a/core/app/models/spree/order.rb
+++ b/core/app/models/spree/order.rb
@@ -18,7 +18,6 @@ class Order < ActiveRecord::Base
       go_to_state :payment, :if => lambda { |order|
         # Fix for #2191
         if order.shipping_method
-          order.create_shipment!
           order.update_totals
         end
         order.payment_required?
@@ -32,7 +31,8 @@ class Order < ActiveRecord::Base
 
     attr_accessible :line_items, :bill_address_attributes, :ship_address_attributes, :payments_attributes,
                     :ship_address, :bill_address, :payments_attributes, :line_items_attributes, :number,
-                    :shipping_method_id, :email, :use_billing, :special_instructions, :currency, :coupon_code
+                    :shipping_method_id, :email, :use_billing, :special_instructions, :currency, :coupon_code,
+                    :shipments_attributes
 
     attr_reader :coupon_code
 
@@ -338,19 +338,6 @@ def create_tax_charge!
       Spree::TaxRate.adjust(self)
     end
 
-    # Creates a new shipment (adjustment is created by shipment model)
-    def create_shipment!
-      shipping_method(true)
-      if shipment.present?
-        shipment.update_attributes!(:shipping_method => shipping_method)
-      else
-        self.shipments << Shipment.create!({ :order => self,
-                                          :shipping_method => shipping_method,
-                                          :address => self.ship_address,
-                                          :inventory_units => self.inventory_units}, :without_protection => true)
-      end
-    end
-
     def outstanding_balance
       total - payment_total
     end
diff --git a/core/app/models/spree/order/checkout.rb b/core/app/models/spree/order/checkout.rb
index bc54425e3a8..537f01622b9 100644
--- a/core/app/models/spree/order/checkout.rb
+++ b/core/app/models/spree/order/checkout.rb
@@ -69,14 +69,12 @@ def self.define_state_machine!
                 end
               end
 
-              before_transition :to => :delivery, :do => :remove_invalid_shipments!
+              before_transition :to => :delivery, :do => :create_proposed_shipments
 
               after_transition :to => :complete, :do => :finalize!
               after_transition :to => :delivery, :do => :create_tax_charge!
               after_transition :to => :resumed,  :do => :after_resume
               after_transition :to => :canceled, :do => :after_cancel
-
-              after_transition :from => :delivery,  :do => :create_shipment!
             end
           end
 
diff --git a/core/app/models/spree/shipment.rb b/core/app/models/spree/shipment.rb
index 6747179f085..42644d6ebf2 100644
--- a/core/app/models/spree/shipment.rb
+++ b/core/app/models/spree/shipment.rb
@@ -15,18 +15,18 @@ class Shipment < ActiveRecord::Base
     has_one :adjustment, :as => :source, :dependent => :destroy
 
     before_create :generate_shipment_number
-    after_save :ensure_correct_adjustment, :update_order
+    after_save :ensure_correct_adjustment, :ensure_selected_shipping_rate, :update_order
 
     attr_accessor :special_instructions
 
     attr_accessible :order, :special_instructions,
-                    :tracking, :address, :inventory_units
+                    :tracking, :address, :inventory_units, :selected_shipping_rate_id
 
     accepts_nested_attributes_for :address
     accepts_nested_attributes_for :inventory_units
 
+
     validates :inventory_units, :presence => true, :if => :require_inventory
-    #validates :shipping_method, :presence => true
 
     make_permalink :field => :number
 
@@ -57,6 +57,20 @@ def add_shipping_method(shipping_method, selected=false)
                                                                         :selected => selected)
     end
 
+    def selected_shipping_rate_id
+      shipping_rates.where(selected: true).first.try(:id)
+    end
+
+    def selected_shipping_rate_id=(id)
+      shipping_rates.update_all(selected: false)
+      shipping_rates.update(id, selected: true)
+    end
+
+    def ensure_selected_shipping_rate
+      shipping_rates.exists?(selected: true) ||
+        shipping_rates.limit(1).update_all(selected: true)
+    end
+
     def currency
       order.nil? ? Spree::Config[:currency] : order.currency
     end
diff --git a/frontend/app/controllers/spree/checkout_controller.rb b/frontend/app/controllers/spree/checkout_controller.rb
index 74b10395681..3ee0646eb17 100644
--- a/frontend/app/controllers/spree/checkout_controller.rb
+++ b/frontend/app/controllers/spree/checkout_controller.rb
@@ -126,7 +126,6 @@ def before_address
 
       def before_delivery
         return if params[:order].present?
-        # @order.shipping_method ||= (@order.rate_hash.first && @order.rate_hash.first[:shipping_method])
       end
 
       def rescue_from_spree_gateway_error
diff --git a/frontend/app/views/spree/checkout/_delivery.html.erb b/frontend/app/views/spree/checkout/_delivery.html.erb
index 729b50b4745..78107239340 100644
--- a/frontend/app/views/spree/checkout/_delivery.html.erb
+++ b/frontend/app/views/spree/checkout/_delivery.html.erb
@@ -2,19 +2,25 @@
   <legend align="center"><%= t(:shipping_method) %></legend>
   <div class="inner" data-hook="shipping_method_inner">
     <div id="methods">
-      <p class="field radios">
 
-        <% @order.create_proposed_shipments.each_with_index do |shipment, idx| %>
-        <h2>Package <%= idx + 1 %> from <%= shipment.stock_location.name %> location</h2>
+      <% @order.create_proposed_shipments %>
+
+        <%= form.fields_for :shipments do |ship_form| %>
+          <p>Package from <%= ship_form.object.stock_location.name %></p>
+
           <p>contents:</p>
-          <% shipment.manifest.each do |item| %>
+          <% ship_form.object.manifest.each do |item| %>
             <%= item.variant.name %> <%= item.quantity %>
           <% end %>
-          <% shipment.shipping_rates.each do |shipping_rate| %>
-          <p><%= radio_button_tag "shipment_{shipment.id}", shipping_rate.id, shipping_rate.selected %><%= shipping_rate.name %> <%= shipping_rate.cost %></p>
+
+          <p>shipping method</p>
+          <% ship_form.object.shipping_rates.each do |rate| %>
+            <p class="field radios">
+              <%= ship_form.radio_button :selected_shipping_rate_id, rate.id %> <%= rate.name %> <%= rate.cost %></p>
+            </p>
           <% end %>
         <% end %>
-      </p>
+
     </div>
     <% if Spree::Config[:shipping_instructions] && @order.rate_hash.present? %>
       <p id="minstrs" data-hook>
diff --git a/frontend/app/views/spree/shared/_order_details.html.erb b/frontend/app/views/spree/shared/_order_details.html.erb
index 0531df8894c..c718b0b580f 100644
--- a/frontend/app/views/spree/shared/_order_details.html.erb
+++ b/frontend/app/views/spree/shared/_order_details.html.erb
@@ -13,9 +13,12 @@
 
     <% if @order.has_step?("delivery") %>
       <div class="columns alpha four">
-        <h6><%= t(:shipping_method) %> <%= link_to "(#{t(:edit)})", checkout_state_path(:delivery) unless @order.completed? %></h6>
+        <h6><%= t(:shipments) %> <%= link_to "(#{t(:edit)})", checkout_state_path(:delivery) unless @order.completed? %></h6>
         <div class="delivery">
-          <%= order.shipping_method.name %>
+          <% order.shipments.each do |shipment| %>
+            <%= shipment.stock_location.name %>
+            <%= shipment.shipping_method.name %>
+          <% end %>
         </div>
         <%= render(:partial => 'spree/shared/shipment_tracking', :locals => {:order => @order}) if @order.shipped? %>
       </div>