How to integrate Shippo MCP with Pydantic AI

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Introduction

This guide walks you through connecting Shippo to Pydantic AI using the Composio tool router. By the end, you'll have a working Shippo agent that can create shipping label for new order, track shipment status by tracking number, get shipping rates for a package through natural language commands.

This guide will help you understand how to give your Pydantic AI agent real control over a Shippo account through Composio's Shippo MCP server.

Before we dive in, let's take a quick look at the key ideas and tools involved.

TL;DR

Here's what you'll learn:
  • How to set up your Composio API key and User ID
  • How to create a Composio Tool Router session for Shippo
  • How to attach an MCP Server to a Pydantic AI agent
  • How to stream responses and maintain chat history
  • How to build a simple REPL-style chat interface to test your Shippo workflows

What is Pydantic AI?

Pydantic AI is a Python framework for building AI agents with strong typing and validation. It leverages Pydantic's data validation capabilities to create robust, type-safe AI applications.

Key features include:

  • Type Safety: Built on Pydantic for automatic data validation
  • MCP Support: Native support for Model Context Protocol servers
  • Streaming: Built-in support for streaming responses
  • Async First: Designed for async/await patterns

What is the Shippo MCP server, and what's possible with it?

The Shippo MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your Shippo account. It provides structured and secure access so your agent can perform Shippo operations on your behalf.

Supported Tools & Triggers

Tools
Create Shippo AddressTool to create a new address in Shippo.
Create BatchTool to create a batch of shipments for bulk label purchasing.
Create Carrier AccountTool to create a new carrier account in Shippo.
Create Customs ItemCreate a new customs item for international shipments.
Create Live RateTool to generate live shipping rates from multiple carriers for a given shipment.
Create ManifestTool to create a new shipping manifest with Shippo.
Create Merchant AddressTool to create a new address for a merchant using Shippo's Platform API.
Create Merchant BatchTool to create a batch for a merchant using the Shippo Platform API.
Create Merchant Carrier AccountTool to create a carrier account for a merchant using the Shippo Platform API.
Create Merchant Customs DeclarationTool to create a new customs declaration for a merchant using Shippo's Platform API.
Create Merchant Customs ItemTool to create a new customs item for a merchant using Shippo's Platform API.
Create Merchant OrderTool to create an order for a merchant using the Shippo Platform API.
Create Merchant ParcelTool to create a new parcel for a merchant using Shippo's Platform API.
Create Merchant RefundTool to create a refund for a merchant using the Shippo Platform API.
Create Merchant ShipmentTool to create a new shipment for a merchant using Shippo's Platform API.
Create Merchant TransactionTool to create a shipping label transaction for a merchant using the Shippo Platform API.
Create OrderTool to create a new order in Shippo.
Create ParcelTool to create a new parcel in Shippo with dimensions and weight specifications.
Create RefundTool to create a refund for a Shippo transaction.
Create Service GroupTool to create a new Shippo service group with specified pricing model and carrier service levels.
Create ShipmentTool to create a new shipment with Shippo.
Register Tracking WebhookTool to register a tracking webhook for a shipment.
Create TransactionTool to create a shipping label transaction with Shippo.
Create User Parcel TemplateTool to create a new user parcel template in Shippo with preset dimensions and weight specifications.
Create Shippo WebhookTool to create a new webhook subscription in Shippo.
Delete Default Parcel TemplateTool to clear the current default parcel template.
Delete User Parcel TemplateTool to delete a user-created parcel template.
Delete WebhookTool to delete a specific webhook from Shippo.
Get AddressTool to retrieve a previously created address from Shippo.
Get Carrier AccountTool to retrieve a carrier account by its ID.
Get Carrier Parcel TemplateTool to retrieve a specific carrier parcel template by its token.
Get Carrier Registration StatusTool to retrieve carrier registration status from Shippo.
Get Customs DeclarationTool to retrieve a customs declaration by its ID.
Get customs itemTool to retrieve a customs item from Shippo.
Get Default Parcel TemplateTool to retrieve the current default parcel template for live rates at checkout.
Get MerchantTool to retrieve a merchant from the Shippo Platform API.
Get Merchant AddressTool to retrieve a merchant address from Shippo Platform API.
Get Merchant BatchTool to retrieve a batch for a merchant from the Shippo Platform API.
Get Merchant Carrier AccountTool to retrieve a carrier account for a merchant using the Shippo Platform API.
Get Merchant Carrier Registration StatusTool to retrieve carrier registration status for a specific merchant using Shippo's Platform API.
Get Merchant Customs DeclarationTool to retrieve a specific customs declaration for a merchant using Shippo's Platform API.
Get Merchant Customs ItemTool to retrieve a customs item for a merchant using the Shippo Platform API.
Get Merchant ManifestTool to retrieve a manifest for a merchant from the Shippo Platform API.
Get Merchant OrderTool to retrieve an order for a merchant from the Shippo Platform API.
Get Merchant ParcelTool to retrieve a parcel for a merchant from the Shippo Platform API.
Get Merchant RateTool to retrieve a specific shipping rate for a merchant using the Shippo Platform API.
Get Merchant RefundTool to retrieve a merchant refund from Shippo Platform API.
Get Merchant ShipmentTool to retrieve a shipment for a merchant from the Shippo Platform API.
Get Merchant Tracking StatusTool to retrieve tracking status for a merchant from Shippo Platform API.
Get Merchant TransactionTool to retrieve a shipping label transaction for a merchant from the Shippo Platform API.
Get OrderTool to retrieve an order from Shippo.
Get ParcelTool to retrieve a parcel by its ID.
Get RateTool to retrieve a specific shipping rate by its ID.
Get RefundTool to retrieve a refund by its ID from Shippo.
Get ShipmentTool to retrieve a shipment by its ID.
Get Shippo AccountTool to retrieve a Shippo Account from the Shippo Platform API.
Get Tracking StatusTool to retrieve tracking status for a shipment from Shippo.
Get TransactionTool to retrieve a shipping label transaction by its ID.
Get User Parcel TemplateTool to retrieve a specific user-created parcel template by its object ID.
Get WebhookTool to retrieve a specific webhook subscription from Shippo.
List AddressesTool to list all addresses in the Shippo account with pagination support.
List Carrier AccountsTool to list all carrier accounts configured in the Shippo account with pagination support.
List Carrier Parcel TemplatesTool to list all carrier parcel templates available for creating shipments.
List Customs DeclarationsTool to list all customs declarations in the Shippo account with pagination support.
List Customs ItemsTool to list all customs items with pagination support.
List ManifestsTool to list all shipping manifests from Shippo.
List Merchant AddressesTool to list all addresses for a specific merchant using the Shippo Platform API.
List Merchant Carrier AccountsTool to list all carrier accounts for a specific merchant using the Shippo Platform API.
List Merchant Customs DeclarationsTool to list all customs declarations for a specific merchant using the Shippo Platform API.
List Merchant Customs ItemsTool to list all customs items for a specific merchant using the Shippo Platform API.
List Merchant ManifestsTool to list all manifests for a specific merchant using Shippo's Platform API.
List Merchant ParcelsTool to list all parcels for a specific merchant using the Shippo Platform API.
List MerchantsTool to list all merchants using the Shippo Platform API with pagination support.
List Merchant Shipment Rates by CurrencyTool to retrieve available shipping rates for a merchant's shipment filtered by currency code using the Shippo Platform API.
List Merchant ShipmentsTool to list all shipments for a specific merchant using Shippo's Platform API.
List Merchant TransactionsTool to list all shipping label transactions for a merchant using the Shippo Platform API.
List OrdersTool to list all orders in the Shippo account with pagination support.
List RefundsTool to retrieve a list of all refunds from Shippo.
List Service GroupsTool to retrieve all service groups configured in Shippo.
List Shipment RatesTool to retrieve available shipping rates for a specific shipment.
List Shipment Rates by CurrencyTool to retrieve available shipping rates for a specific shipment filtered by currency code.
List ShipmentsTool to list all shipments in the Shippo account with pagination support.
List Shippo AccountsTool to list all Managed Shippo Accounts.
List User Parcel TemplatesTool to list all user-created parcel templates.
Purchase Merchant BatchTool to purchase a batch for a merchant via the Shippo Platform API.
Remove Shipments From BatchTool to remove shipments from a batch for a merchant using the Shippo Platform API.
Update Carrier AccountTool to update an existing carrier account in Shippo.
Update Default Parcel TemplateTool to update the default parcel template for live rates at checkout in Shippo.
Update MerchantTool to update an existing merchant in Shippo Platform API.
Update Merchant Carrier AccountTool to update a carrier account for a merchant in Shippo Platform API.
Update Service GroupTool to update an existing Shippo service group.
Update User Parcel TemplateTool to update an existing user parcel template with new weight and carrier template settings.
Update WebhookTool to update an existing webhook in Shippo.
Validate AddressTool to validate an address using the Shippo API.
Validate Merchant AddressTool to validate a merchant address using the Shippo Platform API.

What is the Composio tool router, and how does it fit here?

What is Tool Router?

Composio's Tool Router helps agents find the right tools for a task at runtime. You can plug in multiple toolkits (like Gmail, HubSpot, and GitHub), and the agent will identify the relevant app and action to complete multi-step workflows. This can reduce token usage and improve the reliability of tool calls. Read more here: Getting started with Tool Router

The tool router generates a secure MCP URL that your agents can access to perform actions.

How the Tool Router works

The Tool Router follows a three-phase workflow:

  1. Discovery: Searches for tools matching your task and returns relevant toolkits with their details.
  2. Authentication: Checks for active connections. If missing, creates an auth config and returns a connection URL via Auth Link.
  3. Execution: Executes the action using the authenticated connection.

Step-by-step Guide

Prerequisites

Before starting, make sure you have:
  • Python 3.9 or higher
  • A Composio account with an active API key
  • Basic familiarity with Python and async programming

Getting API Keys for OpenAI and Composio

OpenAI API Key
  • Go to the OpenAI dashboard and create an API key. You'll need credits to use the models, or you can connect to another model provider.
  • Keep the API key safe.
Composio API Key
  • Log in to the Composio dashboard.
  • Navigate to your API settings and generate a new API key.
  • Store this key securely as you'll need it for authentication.

Install dependencies

bash
pip install composio pydantic-ai python-dotenv

Install the required libraries.

What's happening:

  • composio connects your agent to external SaaS tools like Shippo
  • pydantic-ai lets you create structured AI agents with tool support
  • python-dotenv loads your environment variables securely from a .env file

Set up environment variables

bash
COMPOSIO_API_KEY=your_composio_api_key_here
USER_ID=your_user_id_here
OPENAI_API_KEY=your_openai_api_key

Create a .env file in your project root.

What's happening:

  • COMPOSIO_API_KEY authenticates your agent to Composio's API
  • USER_ID associates your session with your account for secure tool access
  • OPENAI_API_KEY to access OpenAI LLMs

Import dependencies

python
import asyncio
import os
from dotenv import load_dotenv
from composio import Composio
from pydantic_ai import Agent
from pydantic_ai.mcp import MCPServerStreamableHTTP

load_dotenv()
What's happening:
  • We load environment variables and import required modules
  • Composio manages connections to Shippo
  • MCPServerStreamableHTTP connects to the Shippo MCP server endpoint
  • Agent from Pydantic AI lets you define and run the AI assistant

Create a Tool Router Session

python
async def main():
    api_key = os.getenv("COMPOSIO_API_KEY")
    user_id = os.getenv("USER_ID")
    if not api_key or not user_id:
        raise RuntimeError("Set COMPOSIO_API_KEY and USER_ID in your environment")

    # Create a Composio Tool Router session for Shippo
    composio = Composio(api_key=api_key)
    session = composio.create(
        user_id=user_id,
        toolkits=["shippo"],
    )
    url = session.mcp.url
    if not url:
        raise ValueError("Composio session did not return an MCP URL")
What's happening:
  • We're creating a Tool Router session that gives your agent access to Shippo tools
  • The create method takes the user ID and specifies which toolkits should be available
  • The returned session.mcp.url is the MCP server URL that your agent will use

Initialize the Pydantic AI Agent

python
# Attach the MCP server to a Pydantic AI Agent
shippo_mcp = MCPServerStreamableHTTP(url, headers={"x-api-key": COMPOSIO_API_KEY})
agent = Agent(
    "openai:gpt-5",
    toolsets=[shippo_mcp],
    instructions=(
        "You are a Shippo assistant. Use Shippo tools to help users "
        "with their requests. Ask clarifying questions when needed."
    ),
)
What's happening:
  • The MCP client connects to the Shippo endpoint
  • The agent uses GPT-5 to interpret user commands and perform Shippo operations
  • The instructions field defines the agent's role and behavior

Build the chat interface

python
# Simple REPL with message history
history = []
print("Chat started! Type 'exit' or 'quit' to end.\n")
print("Try asking the agent to help you with Shippo.\n")

while True:
    user_input = input("You: ").strip()
    if user_input.lower() in {"exit", "quit", "bye"}:
        print("\nGoodbye!")
        break
    if not user_input:
        continue

    print("\nAgent is thinking...\n", flush=True)

    async with agent.run_stream(user_input, message_history=history) as stream_result:
        collected_text = ""
        async for chunk in stream_result.stream_output():
            text_piece = None
            if isinstance(chunk, str):
                text_piece = chunk
            elif hasattr(chunk, "delta") and isinstance(chunk.delta, str):
                text_piece = chunk.delta
            elif hasattr(chunk, "text"):
                text_piece = chunk.text
            if text_piece:
                collected_text += text_piece
        result = stream_result

    print(f"Agent: {collected_text}\n")
    history = result.all_messages()
What's happening:
  • The agent reads input from the terminal and streams its response
  • Shippo API calls happen automatically under the hood
  • The model keeps conversation history to maintain context across turns

Run the application

python
if __name__ == "__main__":
    asyncio.run(main())
What's happening:
  • The asyncio loop launches the agent and keeps it running until you exit

Complete Code

Here's the complete code to get you started with Shippo and Pydantic AI:

python
import asyncio
import os
from dotenv import load_dotenv
from composio import Composio
from pydantic_ai import Agent
from pydantic_ai.mcp import MCPServerStreamableHTTP

load_dotenv()

async def main():
    api_key = os.getenv("COMPOSIO_API_KEY")
    user_id = os.getenv("USER_ID")
    if not api_key or not user_id:
        raise RuntimeError("Set COMPOSIO_API_KEY and USER_ID in your environment")

    # Create a Composio Tool Router session for Shippo
    composio = Composio(api_key=api_key)
    session = composio.create(
        user_id=user_id,
        toolkits=["shippo"],
    )
    url = session.mcp.url
    if not url:
        raise ValueError("Composio session did not return an MCP URL")

    # Attach the MCP server to a Pydantic AI Agent
    shippo_mcp = MCPServerStreamableHTTP(url, headers={"x-api-key": COMPOSIO_API_KEY})
    agent = Agent(
        "openai:gpt-5",
        toolsets=[shippo_mcp],
        instructions=(
            "You are a Shippo assistant. Use Shippo tools to help users "
            "with their requests. Ask clarifying questions when needed."
        ),
    )

    # Simple REPL with message history
    history = []
    print("Chat started! Type 'exit' or 'quit' to end.\n")
    print("Try asking the agent to help you with Shippo.\n")

    while True:
        user_input = input("You: ").strip()
        if user_input.lower() in {"exit", "quit", "bye"}:
            print("\nGoodbye!")
            break
        if not user_input:
            continue

        print("\nAgent is thinking...\n", flush=True)

        async with agent.run_stream(user_input, message_history=history) as stream_result:
            collected_text = ""
            async for chunk in stream_result.stream_output():
                text_piece = None
                if isinstance(chunk, str):
                    text_piece = chunk
                elif hasattr(chunk, "delta") and isinstance(chunk.delta, str):
                    text_piece = chunk.delta
                elif hasattr(chunk, "text"):
                    text_piece = chunk.text
                if text_piece:
                    collected_text += text_piece
            result = stream_result

        print(f"Agent: {collected_text}\n")
        history = result.all_messages()

if __name__ == "__main__":
    asyncio.run(main())

Conclusion

You've built a Pydantic AI agent that can interact with Shippo through Composio's Tool Router. With this setup, your agent can perform real Shippo actions through natural language. You can extend this further by:
  • Adding other toolkits like Gmail, HubSpot, or Salesforce
  • Building a web-based chat interface around this agent
  • Using multiple MCP endpoints to enable cross-app workflows (for example, Gmail + Shippo for workflow automation)
This architecture makes your AI agent "agent-native", able to securely use APIs in a unified, composable way without custom integrations.

How to build Shippo MCP Agent with another framework

FAQ

What are the differences in Tool Router MCP and Shippo MCP?

With a standalone Shippo MCP server, the agents and LLMs can only access a fixed set of Shippo tools tied to that server. However, with the Composio Tool Router, agents can dynamically load tools from Shippo and many other apps based on the task at hand, all through a single MCP endpoint.

Can I use Tool Router MCP with Pydantic AI?

Yes, you can. Pydantic AI fully supports MCP integration. You get structured tool calling, message history handling, and model orchestration while Tool Router takes care of discovering and serving the right Shippo tools.

Can I manage the permissions and scopes for Shippo while using Tool Router?

Yes, absolutely. You can configure which Shippo scopes and actions are allowed when connecting your account to Composio. You can also bring your own OAuth credentials or API configuration so you keep full control over what the agent can do.

How safe is my data with Composio Tool Router?

All sensitive data such as tokens, keys, and configuration is fully encrypted at rest and in transit. Composio is SOC 2 Type 2 compliant and follows strict security practices so your Shippo data and credentials are handled as safely as possible.

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