UNITED STATES
                 SECURITIES AND EXCHANGE COMMISSION

                    Washington, D. C.  20549


                           FORM 10-Q


      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
              THE SECURITIES EXCHANGE ACT OF 1934



For The Period Ended September 27, 1996     Commission File Number 0-14759
     


                 KLLM TRANSPORT SERVICES, INC.       
     (Exact name of registrant as specified in its charter)


  Delaware                                               64-012551  
(State or other jurisdiction of                     (I.R.S. Employer
 incorporation or organization)                     Identification No.)



   Post Office Box 6098
  Jackson, Mississippi                                    39288    
  (Address of principal executive offices)              (Zip Code)


 Registrant's telephone number, including area code   (601) 939-2545
       


      Indicate by check mark whether the registrant (1) has filed all 
reports required to be filed by Section 13 or 15(d) of the Securities 
Exchange Act of 1934 during the preceding 12 months, and (2) has been  
subject to such filing requirements for the past 90 days.
                                                     Yes  X       No      
                                               




      4,338,420 Common Shares were outstanding as of September 27, 1996.
  <PAGE>
                           

                       KLLM TRANSPORT SERVICES, INC.  
                           AND SUBSIDIARIES
                                      
                                     
                                  INDEX
                                                                      Page
                                                                      Number
                                                                             

    PART I.  FINANCIAL INFORMATION:

       Item 1.  Financial Statements

             Condensed Consolidated Balance Sheets
              September 27, 1996 (Unaudited) and December 29, 1995        1

             Consolidated Statements of Earnings (Unaudited)
              Thirteen weeks and Thirty-nine weeks ended September 27, 
              1996 and September 29, 1995                                 2
                
             Condensed Consolidated Statements of Cash Flows 
              (Unaudited) Thirty-nine weeks ended September 27, 
              1996 and September 29, 1995                                 3

             Notes to Condensed Consolidated Financial Statements 
              (Unaudited)                                                 4


       Item 2.  Management's Discussion and Analysis of Financial 
             Condition and Results of Operations                          5


    PART II.  OTHER INFORMATION:

       Item 6.  Exhibits and Reports on Form 8-K                          7

<PAGE>

                    KLLM TRANSPORT SERVICES, INC
                         AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>

                                      September 27,            December 29,
                                         1996                     1995
                                       (Unaudited)                (Note)
                                                 (In Thousands)
ASSETS
<S>                                         <C>                    <C>
Current assets:
     Cash and cash equivalents              $1,163                  $0
     Accounts receivable                    28,653                  27,787
     Inventories - at cost                   1,023                   1,315
     Prepaid expenses:
          Tires                              3,794                   4,096
          Other                              3,720                   3,809
     Deferred income taxes                   1,940                   1,940
                                           --------                 -------
               Total current assets         40,293                  38,947

Property and equipment                     185,025                 179,568
     Less accumulated depreciation         (61,727)                (57,304)
                                          ---------                 -------
                                           123,298                 122,264

Intangible assets, net                       2,351                   2,626

Other assets                                   348                     411
                                          ---------                --------

                                          $166,290                $164,248
                                          =========               ==========

<S>                                       <C>                     <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
     Notes payable to banks                   $782                  $2,758
     Accounts payable and accrued expenses  22,597                  13,076
     Current maturities of long-term debt
       and capital leases                    4,835                   5,937
                                           -------                  -------
          Total current liabilities         28,214                  21,771
                                           =======                  =======

Long-term debt and capital leases, less
  current maturities                        54,937                  59,594

Deferred income taxes                       16,915                  16,915

Stockholders' equity:
  Preferred Stock, $.01 value; authorized 
  5,000,000 shares; none issued Common 
  Stock, $1 par value; 10,000,000 shares 
  authorized; issued shares - 4,552,219 
  in 1996 and 1995, respectively;
  outstanding shares - 4,338,420 in 1996 
  and 4,358,653 in 1995.                     4,552                   4,552
     Additional paid-in capital             32,658                  32,815
     Retained earnings                      31,337                  30,687
                                           --------                --------
                                            68,547                  68,054
     Less Common Stock in Treasury, 
     at cost, 213,799 shares in 1996
     and 193,566 in 1995.                   (2,323)                 (2,086)
                                           --------                --------
          Total stockholders' equity        66,224                  65,968
                                           --------                --------
                                          $166,290                $164,248
                                          =========               =========

<S>                                       <C>                     <C>
</TABLE>
Note: The balance sheet at December 29, 1995 has been derived from 
the audited financial statements at the date indicated, but does not 
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.

See accompanying notes.



                     KLLM TRANSPORT SERVICES, INC.
                            AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF EARNINGS 
                               (Unaudited)

<TABLE>
<CAPTION>


                          Thirteen Weeks Ended     Thirty-Nine Weeks Ended
                      September 27, September 29, September 27,September 29,
                            1996      1995               1996    1995
                       --------------------------  -------------------------
                               (In Thousands, Except Per Share Amounts)

<S>                        <C>       <C>              <C>        <C>
OPERATING REVENUE          $62,466   $63,158          $193,311   $177,552

OPERATING EXPENSES:
  Salaries, wages and
    fringe benefits         17,780    18,564            55,015     51,908
  Operating supplies                                                  
    and expenses            16,382    17,937            52,340     48,703
  Insurance, claims,
    taxes and licenses       3,694     3,226             9,828      8,495
  Depreciation and
    amortization             5,530     5,990            16,629     17,250
  Purchased transportation
    and equipment rent      15,869    14,549            48,345     38,804
  Other                      2,400     2,637             7,346      7,787
  Gain on sale of                                             
    revenue equipment         (652)     (442)             (996)    (1,190)
                            -----------------            -----------------
    TOTAL OPERATING 
       EXPENSES             61,003     62,461          188,507    171,757
                            -----------------          -------------------


 OPERATING INCOME FROM 
  CONTINUING OPERATIONS      1,463       697             4,804      5,795

Interest and other income      (18)       (7)              (37)       (16)
Interest expense             1,131     1,471             3,600      4,289
                            -----------------           --------------------
                             1,113     1,464             3,563      4,273
                            -----------------           --------------------
EARNINGS (LOSS) FROM 
CONTINUING OPERATIONS BEFORE
INCOME TAXES                   350      (767)            1,241      1,522
Income taxes                   220      (293)              558        567
                            -----------------            -------------------
NET EARNINGS (LOSS) FROM 
CONTINUING OPERATIONS         $130     ($474)             $683       $955
LOSS FROM OPERATIONS OF 
DISCONTINUED DIVISION  
(Net of tax expense (benefits) 
of $0 in 1996 and ($23) and 
($202) for the 1995 thirteen     0      ($41)               $0      ($359)
weel and thirty nine week 
periods, respectively)

INCOME (LOSS) ON DISPOSAL OF 
DISCONTINUED DIVISION (Net of tax
expense (benefit) of ($31) and 
($27) for the 1996 thirteen week 
and thirty nine  week
periods, respectively,and $0 
in 1995)                        (39)      $0              ($33)        $0
                             --------------------         -------------------

    NET EARNINGS (LOSS)         $91     ($515)            $650       $596
                             ====================         ===================

EARNINGS (LOSS) PER SHARE:
 From Continuing Operations   $0.03    ($0.10)            $0.16     $0.21
 From Operations of 
 Discontinued Division         0.00     (0.01)             0.00     (0.08)
 From Disposal of 
 Discontinued Division        (0.01)     0.00             (0.01)     0.00
                             ---------------------        -------------------

 NET EARNINGS (LOSS) PER 
 COMMON SHARE                 $0.02    ($0.11)            $0.15     $0.13
                             =====================        ===================

<S>                           <C>       <C>               <C>       <C>
</TABLE>

See accompanying notes.


                       KLLM TRANSPORT SERVICES, INC.
                             AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (Unaudited)
<TABLE>
<CAPTION>
                                       Thirty-Nine Weeks Ended
                                   September 27,    September 29,
                                       1996           1995
                                   --------------  --------------
                                           (In Thousands)

<S>                                  <C>              <C>
NET CASH PROVIDED BY OPERATING
     ACTIVITIES                      $26,085          $17,127

CASH FLOWS FROM INVESTING 
     ACTIVITIES:
 Acquisition of Vernon Sawyer, 
 Inc. assets (Note B)                      0          (10,531)
   Purchases of property and 
   equipment                          (23,151)        (19,155)
   Proceeds from disposition of 
   equipment                            6,358           7,991
                                   -------------   --------------
NET CASH FLOWS USED IN INVESTING
      ACTIVITIES                      (16,793)        (21,695)
                                   -------------   --------------

CASH FLOWS FROM FINANCING 
      ACTIVITIES:
   Proceeds from exercise of 
    stock options                         427             244
   Redemption of treasury shares         (854)              0
   Debt to fund Vernon Sawyer, Inc. 
    acquisition                             0           3,795
   Net increase in borrowings under 
    revolving line of credit                0           5,000
   Repayment of long-term debt, 
    capital leases, and notes payable 
    to banks                            (7,188)        (4,272)
   Net (decrease) in borrowings under 
    working capital line of credit        (514)        (1,552)
                                      -----------   -------------
NET CASH FLOWS PROVIDED BY
     FINANCING ACTIVITIES               (8,129)         3,215
                                      -----------   -------------               

Net Decrease in Cash and
     Cash Equivalents                    1,163         (1,353)
Cash and Cash Equivalents at 
     Beginning Of Period                     0          1,353
                                      -----------   -------------
Cash and Cash Equivalents at End
     Of Period                          $1,163             $0
                                      ============  =============
<S>                                   <C>           <C>
</TABLE>




See accompanying notes.

<PAGE>

                  KLLM TRANSPORT SERVICES, INC
                        AND SUBSIDIARIES
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL
                           STATEMENTS
                          (Unaudited)
                                
                                
                                
      NOTE A-  BASIS OF PRESENTATION

     The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting 
principles for interim financial information. They have been prepared in 
accordance with the instructions to Form 10-Q and Article 10 of Regulation 
S-X and accordingly, do not include all of the information and footnotes 
required by generally accepted accounting principles for complete financial 
statements.  In the opinion of management, all adjustments (consisting of 
normal recurring accruals) considered necessary for a fair
presentation have been included. 

     In March 1995, the FASB issued Statement No. 121, Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed 
of, which requires impairment losses to be recorded on long-lived assets 
used in operations when indicators of impairment are present and the 
undiscounted cash flows estimated to be generated by those assets are 
less than the assets' carrying amount.  Statement 121 also
addresses the accounting for long-lived assets that are expected to be 
disposed of.  The Company adopted Statement 121 in the
first quarter of 1996 and the affect was not material.


NOTE B - ACQUISITION OF CORPORATION

     Effective May 1, 1995, the Company acquired substantially all of the 
assets of Vernon Sawyer, Inc., a regional dry-van truckload carrier based 
in Bastrop, Louisiana. 

NOTE  C - FISCAL YEAR 

     The Company has adopted a fiscal year-end on the Friday nearest December
31.  Accordingly, the third  quarter of 1996 ended on Friday, September 27, 
1996.  


NOTE  D - COMMITMENTS AND CONTINGENCIES
    
          The Company is involved in various claims and routine litigation 
incidental to its business. Management is of the opinion that the outcome 
of these matters will not have a material adverse effect on the
consolidated financial position or results of consolidated operations of 
the Company.  


<PAGE>
 
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
               
Liquidity and Capital Resources

     KLLM Transport Services, Inc.'s primary sources of liquidity are its 
cash flow from operations and its existing credit agreements.  During the 
thirty-nine weeks ended September 27, 1996, the Company generated $26.1 
million in net cash provided from operating activities.

     Capital resources required by the Company during the first nine months 
of 1996 were approximately $5,629,000 greater than the same period last year.  
In January 1995, the Company entered into an operating lease for
the majority of its revenue equipment needs for that year.  The payment terms
of the operating lease were more favorable than could have been obtained 
with financing or capital leasing.  In 1996, the Company has returned to its
traditional method of investing in maintaining a modern fleet. Capital
expenditures, net of proceeds from trade-ins, during the first nine months 
of 1996 were approximately $16,793,000 as compared
to $11,164,000 in the first nine months of 1995.  This is as a result of 
the Company's decision to curtail growth of the fleet and refocus attention
on improving utilization and profitability in the core trucking business.  
Net capital expenditures for the remainder of 1996, primarily for revenue 
equipment, are expected to be approximately $5,467,000. 

     At the end of 1995, the Company discontinued that segment of the
international operations aimed at maritime containerized shipments.  
This division proved to be unprofitable and difficult to manage; thus, 
in an effort to minimize exposure on future earnings, the Company 
recognized a one-time after-tax charge to 1995 earnings of $441,000, or
$0.10 per share, on the disposal of that unit.  To date, there have been 
no changes in the plan of disposal, or circumstances related thereto.  

     Effective May 1, 1995, the Company acquired substantially all of the 
assets of Vernon Sawyer, Inc, a regional dry-van truckload carrier based 
in Bastrop, Louisiana.  The acquisition was financed from net cash 
provided from operating activities and existing credit facilities.

     At September 27, 1996, the aggregate principal amount of the Company's
outstanding long-term indebtedness was approximately $59.8 million.  Of 
this total outstanding, $2.5 million was in the form of 10.2% notes due 
July 15, 1998, $17.2 million in the form of 9.11% senior notes due June 15, 
2002, $35.0 million consisted of the revolving line of credit due April 7, 
1998, and $5.1 million principal was relative to capital leases
with varying maturities.

     The Company has a $50,000,000 unsecured revolving line of credit with a
syndication of banks. As noted above, borrowings of $35,000,000 were 
outstanding at September 27, 1996.  Under the terms of the agreement,
borrowings bear interest at (i) the higher of prime rate or a rate based upon 
the Federal Funds Effective Rate, (ii) a rate based upon the Eurodollar rates, 
or (iii) an absolute interest rate as determined by each lender in the 
syndication under a competitive bid process at the Company's option.  
Facilities fees from 1/4%  to 3/8% per annum are charged on the
unused portion of this line.  
     
     Working capital needs have generally been met from net cash provided 
from operating activities.  The Company has $4,150,000 in unsecured working 
capital lines of credit with a bank, $4,013,000 of which was available
at September 27, 1996.  Interest is at a rate based upon the Eurodollar rates 
with facility fees at 1/4% per annum on the unused portion of the line.
     
     The Company anticipates that its existing credit facilities along with 
cash flow from operations will be sufficient to fund operating expenses, 
capital expenditures, and debt service.


Results of Operations
      
     Operating revenue for the third quarter and first nine months of 1996
decreased 1.1% and increased 8.9% over the comparable periods of 1995.  
The increase in operating revenue in the third quarter consisted of a 0.1% 
increase from the Company's traditional over-the-road truckload business, 
of which a 2.8% increase came from the owner-operator division, a 2.1% 
decrease from rail services, 3.4% decrease from transportation brokerage 
services, and 4.5% increase from the dry-van over-the-road truckload 
division.  The increase in operating revenue in the first nine months
of 1996 consisted of a 4.9% increase from the Company's traditional 
over-the-road truckload business, of which a 4.6% increase came from the 
owner-operator division, a 1.1% decrease from rail services, a 1.2% decrease 
from transportation brokerage services, and 6.3% increase from the dry-van 
over-the-road truckload division.  The net revenue increase
resulted primarily from an improvement in utilization of available 
equipment. Total miles per truck per week for the third quarter and first
nine months of 1996 decreased 0.2% and increased 3.0%
over the same periods in the prior year, while at the same time, deadhead 
percentage decreased 5.5% and 3.2% 

     The operating ratio decreased from 98.9% to 97.7% for the third 
quarter and increased from 96.7% to 97.5% for the first nine months of 1996 
compared to the same periods in 1995. Operating revenues and results 
continue to be affected by an overall weak freight market which has plagued 
the industry since early last year.  In addition, in the first
nine months of 1996, the Company experienced a steady and significant 
increase in fuel costs, coupled by an unusually large number of severe 
winter storms.  The relative change in the components of
operating expenses during the first nine months of 1996, when compared to 
the same period last year, reflects the following: a)  an increase in driver 
pay and related costs of approximately $2,871,000, b) the previously mentioned 
increased fuel costs of approximately $4,231,000, (within this amount, 
approximately $2,318,000, or $0.019 per mile is associated with the rising 
fuel prices), c) an increase in purchased transportation of approximately 
$2,060,000, which is less than the $2,779,000 in costs relative to dedicated 
services that were not offered by the Company in the first
nine months of last year, and d) the increased equipment rent of 
approximately $2,148,000 regarding the operating leases for revenue 
equipment, as previously mentioned.  Those leases were gradually implemented 
throughout 1995.  These increased costs accounted for 0.5%, 1.8%, less than 
0.1%, and 1.0%, respectively, of the increase in the operating ratio.

     As a result of the foregoing, net earnings from continuing operations
increased by $604,000 or 127.4% for the third quarter and decreased by 
$272,000 or 28.5% for the first nine months of 1996 from the comparable 
periods of 1995. Earnings/(loss) per share from continuing operations 
increased from $(.10) to  $.03 in the third quarter of 1996
and decreased from $.21 to $.16 in the first nine months of 1996 compared 
to the same periods of 1995. 


Seasonality

     In the transportation  industry, results of operations generally show 
a seasonal pattern because customers reduce shipments during and after the 
winter holiday season with its attendant weather variations.  The Company's 
operating expenses have historically been higher in the winter months 
primarily due to decreased fuel efficiency and increased
maintenance costs in colder weather.


<PAGE>

PART II:  OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

             There were no Form 8-K filings  for the quarter ended 
September 27, 1996.

  
            <PAGE>

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.



                                    KLLM TRANSPORT SERVICES, INC.
                                                  (Registrant)       

<TABLE>
<S>                                 <C>
Date   November 6, 1996                                                                           
                                    S/J. Kirby Lane                 
                                    J. Kirby Lane    
                                    Executive Vice President and
                                    Chief Financial Officer                    


Date   November 6, 1996                                                                           
                                                  
                                     Cindy F. Bailey    
                                     Corporate Controller
</TABLE>
                                              
<PAGE>


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.




                                        KLLM TRANSPORT SERVICES, INC.
                                                  (Registrant)       

<TABLE>
<S>                                     <C>
Date   November 6, 1996                 

                                        /s/  J. Kirby Lane                   
                                        J. Kirby Lane    
                                        Executive Vice President and
                                        Chief Financial Officer                    



Date   November 6, 1996                 /s/Cindy F. Bailey                                           
                                        Cindy F. Bailey    
                                        Corporate Controller        
</TABLE>