•The effect of sustainable shipping practice (SSP) on shippers’ loyalty is examined.•Perceived value, social exchange, and transaction cost theories are applied.•The effect of SSP on loyalty is fully-mediated by value.•The effect of value on loyalty is partially-mediated by trust and transaction cost. This study investigates the role of perceived value, trust, and transaction cost in mediating the effect of sustainable shipping practices (SSP) on shippers’ loyalty. Theoretical and alternative models were proposed and compared using survey data collected from 289 shippers. The results show that the relationship between SSP and shippers’ loyalty is mediated by shippers’ perceived value of SSP, shippers’ trust in a shipping company’s commitment towards sustainability, and sustainability-related transaction cost. This study offers an alternative theoretical explanation to the relationship and provides important managerial insights to strengthen shippers’ loyalty through implementing SSP.